Does Ownership Structure Pay Attention to The Corporate Cash Policy? Evidence in Indonesia Firms
Open Access
- 22 September 2019
- journal article
- research article
- Published by LP2M Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta in ETIKONOMI
- Vol. 18 (2), 209-220
- https://doi.org/10.15408/etk.v18i2.10294
Abstract
Cash and its use will connect to many things, such as the performance of corporate governance. This empirical research examines the interaction effect of insider ownership, institutional ownership, and independent board toward the influence of cash policy on the firm value. This research using agency theory framework, corporate governance using Indonesia listed firms’ samples over 2001-2017 (197 firms, 3349 observation). Fixed effect dynamic panel regression and regression-moderated analysis used in this research. We show that these results suggest that the insider ownership, institutional ownership, and independent board strengthen the influence of the corporate cash policy on firm’s value. It develops the previous research findings in Indonesia, especially in the implication of cash management from the perspective of agency theory and corporate governance. JEL Classification: G32, L21Keywords
This publication has 11 references indexed in Scilit:
- Cash holding and control-oriented financeJournal of Corporate Finance, 2016
- Is Family Control Relevant for Corporate Cash Holding Policy?Journal of Business Finance & Accounting, 2016
- Family control and adjustment to the optimal level of cash holdingThe European Journal of Finance, 2016
- Cash holding adjustments and managerial entrenchmentJournal of Corporate Finance, 2016
- The Dynamic Speed of Cash-Holding Adjustment in a Transition Economy: A New Approach and EvidenceEmerging Markets Finance and Trade, 2015
- Corporate governance in emerging markets: A surveyEmerging Markets Review, 2013
- Partial adjustment toward optimal cash holding levelsReview of Financial Economics, 2011
- How and When Do Firms Adjust Their Capital Structures toward Targets?The Journal of Finance, 2008
- The colors of investors’ money: The role of institutional investors around the worldJournal of Financial Economics, 2008
- Corporate governance and the value of cash holdingsJournal of Financial Economics, 2007