2014
DOI: 10.1080/13504851.2013.861581
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Local long-term institutions, growth and cash holdings

Abstract: We provide empirical evidence that support both "outcome" and "substitute" models of agency theories related to cash holding. Local long-term institutional investors are associated with lower excess cash in firms with less growth and easier access to external financing, and with higher excess cash in firms with higher growth in our U.S. sample.

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Cited by 2 publications
(3 citation statements)
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“…The authors claim ownership structure is the only variable to explain the cash holdings behavior in firms with high market capitalization. In a similar study, Chang et al (2014) find that local institutional investors with long-term holdings reduce (increase) excess cash holding in firms with lower (higher) capitalization. Lin et al (2016) use a Chinese sample to identify that institutional ownership increases the value of excess cash holdings when the government is the controlling shareholder.…”
Section: Institutional Ownership and Cash Holdingsmentioning
confidence: 79%
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“…The authors claim ownership structure is the only variable to explain the cash holdings behavior in firms with high market capitalization. In a similar study, Chang et al (2014) find that local institutional investors with long-term holdings reduce (increase) excess cash holding in firms with lower (higher) capitalization. Lin et al (2016) use a Chinese sample to identify that institutional ownership increases the value of excess cash holdings when the government is the controlling shareholder.…”
Section: Institutional Ownership and Cash Holdingsmentioning
confidence: 79%
“…Corporate governance quality influences firms' cash holding behavior (Al-Najjar & Clark, 2017;Al-Hadi et al, 2020). Family, local, and foreign institutional ownership are corporate governance indicators, and there is diversified evidence about the ownership structure's effect on the firm's cash holdings behavior (Liu, 2011;Chang et al, 2014, Nguyen & Rahman, 2020 . Finance policies like dividend payment (Harford et al, 2008;Moin et al, 2020) and capital expenditures (Aǧca & Mozumdar, 2008) also affect a company's cash holdings.…”
Section: Introductionmentioning
confidence: 99%
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