Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching.
The study aimed to investigate the relationship between cash holdings and leverage of Malaysian companies. The present study also attempted to compare the relationship of cash holdings and leverage between sample of firms having low level of ownership concentration and high level of board independen...
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| Format: | Article |
| Language: | English |
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Universiti Teknologi MARA Cawangan Selangor
2011
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| Online Access: | https://ir.uitm.edu.my/id/eprint/31107/ |
| _version_ | 1848807670408019968 |
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| author | Borhanuddin, Rahayu Izwani Pok, Wee Ching |
| author_facet | Borhanuddin, Rahayu Izwani Pok, Wee Ching |
| author_sort | Borhanuddin, Rahayu Izwani |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | The study aimed to investigate the relationship between cash holdings and leverage of Malaysian companies. The present study also attempted to compare the relationship of cash holdings and leverage between sample of firms having low level of ownership concentration and high level of board independence (good corporate governance) and sample of firms that having high level of ownership concentration and low level of board independence (poor corporate governance). Leverage, cash flow variability, liquidity, growth, size and capital expenditure were used as corporate cash holdings determinants. The final sample of the study consisted of 276 companies with 875 observations from six main industries on the Main Board of Bursa Malaysia over a period of four years (2002 to 2005). Linear regression analysis was used to examine the relationship between cash holdings and leverage. The results show that there were significant negative relationships between cash holdings and leverage with or without control variables. The results also show that companies that had poor corporate governance held a higher level of cash compared to companies that practised good corporate governance. |
| first_indexed | 2025-11-14T22:46:31Z |
| format | Article |
| id | uitm-31107 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:46:31Z |
| publishDate | 2011 |
| publisher | Universiti Teknologi MARA Cawangan Selangor |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-311072020-06-17T01:58:42Z https://ir.uitm.edu.my/id/eprint/31107/ Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. mar Borhanuddin, Rahayu Izwani Pok, Wee Ching Financial management. Business finance. Corporation finance Cash position. Cash management Malaysia The study aimed to investigate the relationship between cash holdings and leverage of Malaysian companies. The present study also attempted to compare the relationship of cash holdings and leverage between sample of firms having low level of ownership concentration and high level of board independence (good corporate governance) and sample of firms that having high level of ownership concentration and low level of board independence (poor corporate governance). Leverage, cash flow variability, liquidity, growth, size and capital expenditure were used as corporate cash holdings determinants. The final sample of the study consisted of 276 companies with 875 observations from six main industries on the Main Board of Bursa Malaysia over a period of four years (2002 to 2005). Linear regression analysis was used to examine the relationship between cash holdings and leverage. The results show that there were significant negative relationships between cash holdings and leverage with or without control variables. The results also show that companies that had poor corporate governance held a higher level of cash compared to companies that practised good corporate governance. Universiti Teknologi MARA Cawangan Selangor 2011-06 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/31107/1/AJ_ROHAYU%20IZWANI%20BORHANUDDIN%20MAR%20B%2011.pdf Borhanuddin, Rahayu Izwani and Pok, Wee Ching (2011) Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. (2011) Management & Accounting Review <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review.html>, 10 (1). pp. 1-26. ISSN 2550-1895 |
| spellingShingle | Financial management. Business finance. Corporation finance Cash position. Cash management Malaysia Borhanuddin, Rahayu Izwani Pok, Wee Ching Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. |
| title | Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. |
| title_full | Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. |
| title_fullStr | Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. |
| title_full_unstemmed | Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. |
| title_short | Cash holdings, leverage, ownership concentration and board independence: evidence from Malaysia / Rahayu Izwani Borhanuddin and Pok Wee Ching. |
| title_sort | cash holdings, leverage, ownership concentration and board independence: evidence from malaysia / rahayu izwani borhanuddin and pok wee ching. |
| topic | Financial management. Business finance. Corporation finance Cash position. Cash management Malaysia |
| url | https://ir.uitm.edu.my/id/eprint/31107/ |