Alignment or entrenchment? Evidence from cash holdings in Thailand
Yordying Thanatawee
Afro-Asian J. of Finance and Accounting, Vol. 9, No. 3 (2019) pp. 291 - 308
This paper examines the relationship between managerial ownership and the cash holdings of non-financial firms in Thailand from 2011 to 2015. The results indicate that higher managerial ownership is associated with lower cash holdings, suggesting that managers of Thai firms do not hoard cash for private benefits. Therefore, the findings support the incentive-alignment hypothesis. In addition, the evidence indicates that board size has a negative impact on cash holdings, while board independence does not play a significant role. Furthermore, it is found that profitability, firm size, growth opportunities and cash flow have positive effects on cash holdings, whereas leverage has a nonlinear impact on cash reserves.
Author: Nik Mohamad Zaki Nik Salleh
Corporate governance, disclosure and firm performance: empirical findings from Malaysia
Corporate governance, disclosure and firm performance: empirical findings from Malaysia
Nik Mohamad Zaki Nik Salleh; Chong Lee-Lee; Prem Lal Joshi; Shaista Wasiuzamman
Afro-Asian J. of Finance and Accounting, Vol. 9, No. 3 (2019) pp. 269 - 290
This study examines the effect of corporate governance, disclosure and firm characteristics on firm performance by taking data from the 2013 financial year annual reports of large public listed companies (based on market capitalisation) in Malaysia. Using multiple regression analysis, this study finds that the effect on firm performance, namely ROA, ROE and Tobin's Q, is different. Board size, the percentage of independent directors on the board and percentage of ownership concentration in firms have a significant negative relationship with ROA. ROE shows a significant negative association with board size, AC independence and ownership concentration. Tobin's Q only shows a significant negative relationship with board size. The findings in this study contribute to literature that good corporate governance characteristics, appropriate disclosure of corporate governance information and firm characteristics have improved the performance of listed companies in Malaysia. The study also suggests limitations and directions for future research.
Alignment or entrenchment? Evidence from cash holdings in Thailand
Alignment or entrenchment? Evidence from cash holdings in Thailand
Yordying Thanatawee
Afro-Asian J. of Finance and Accounting, Vol. 9, No. 3 (2019) pp. 291 - 308
This paper examines the relationship between managerial ownership and the cash holdings of non-financial firms in Thailand from 2011 to 2015. The results indicate that higher managerial ownership is associated with lower cash holdings, suggesting that managers of Thai firms do not hoard cash for private benefits. Therefore, the findings support the incentive-alignment hypothesis. In addition, the evidence indicates that board size has a negative impact on cash holdings, while board independence does not play a significant role. Furthermore, it is found that profitability, firm size, growth opportunities and cash flow have positive effects on cash holdings, whereas leverage has a nonlinear impact on cash reserves.
Corporate governance, disclosure and firm performance: empirical findings from Malaysia
Corporate governance, disclosure and firm performance: empirical findings from Malaysia
Nik Mohamad Zaki Nik Salleh; Chong Lee-Lee; Prem Lal Joshi; Shaista Wasiuzamman
Afro-Asian J. of Finance and Accounting, Vol. 9, No. 3 (2019) pp. 269 - 290
This study examines the effect of corporate governance, disclosure and firm characteristics on firm performance by taking data from the 2013 financial year annual reports of large public listed companies (based on market capitalisation) in Malaysia. Using multiple regression analysis, this study finds that the effect on firm performance, namely ROA, ROE and Tobin's Q, is different. Board size, the percentage of independent directors on the board and percentage of ownership concentration in firms have a significant negative relationship with ROA. ROE shows a significant negative association with board size, AC independence and ownership concentration. Tobin's Q only shows a significant negative relationship with board size. The findings in this study contribute to literature that good corporate governance characteristics, appropriate disclosure of corporate governance information and firm characteristics have improved the performance of listed companies in Malaysia. The study also suggests limitations and directions for future research.