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    Corporate governance and cash holdings in MENA: evidence from internal and external governance practices

    Al-Najjar, Basil and Clark, E. (2017) Corporate governance and cash holdings in MENA: evidence from internal and external governance practices. Research in International Business and Finance 39 (A), pp. 1-12. ISSN 0275-5319.

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    Abstract

    This paper explores the impact of internal and external corporate governance practices on the decision to hold cash in MENA countries. Using 430 non-financial firms in the MENA region for the period from 2000 to 2009, we find that both types of governance practices are important. We report a negative relationship between board size and cash holdings, evidence that firms hold less cash to reduce agency conflicts. Also, we detect that external governance activities are important in cash holding decisions, since we report that firms belonging to countries with international standards of securities law and bank supervision hold less cash. For our sub-sample of 85 firms, we report evidence that institutional owners are seen to be self-opportunistic and that they aim to maximize their own private benefits

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): External governance, Board size, Board independence, Institutional ownership, MENA, Cash holdings
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Basil Al-Najjar
    Date Deposited: 11 Nov 2016 09:26
    Last Modified: 20 Jan 2018 01:10
    URI: http://eprints.bbk.ac.uk/id/eprint/16475

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