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    The effect of governance mechanisms on small and medium-sized enterprise cash holdings: evidence from the United Kingdom

    Al-Najjar, Basil (2014) The effect of governance mechanisms on small and medium-sized enterprise cash holdings: evidence from the United Kingdom. Journal of Small Business Management , ISSN 1540-627X.

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    Abstract

    This paper investigates the impact of governance mechanisms on small and medium-sized enterprise (SME) cash holdings from 2000 to 2009, employing static and dynamic panel data analyses. We find no evidence that firm governance index and insider ownership affect cash holdings. This might indicate that governance mechanisms in SMEs are relatively weak. We also report that chief executive officer compensation has a positive effect on cash holdings. Firm-specific factors such as firm size, leverage, and liquidity negatively affect cash holdings, whereas the research and development ratio and operating risk are positively associated with them. Finally, SMEs have target cash holdings and adjust to these.

    Metadata

    Item Type: Article
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Sarah Hall
    Date Deposited: 18 Aug 2014 14:42
    Last Modified: 18 Aug 2014 14:42
    URI: http://eprints.bbk.ac.uk/id/eprint/10427

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