BIROn - Birkbeck Institutional Research Online

    The effect of governance mechanisms on small and medium-sized entreprise cash holdings: evidence from the UK

    Al-Najjar, Basil (2015) The effect of governance mechanisms on small and medium-sized entreprise cash holdings: evidence from the UK. Journal of Small Business Management 53 (2), pp. 303-320. ISSN 1540-627X.

    [img]
    Preview
    Text
    5369.pdf - Author's Accepted Manuscript

    Download (464kB) | Preview

    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
    Additional Information: This is the peer reviewed version of the article, which has been published in final form at the link above. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Basil Al-Najjar
    Date Deposited: 09 Jan 2014 10:36
    Last Modified: 01 Nov 2019 01:41
    URI: http://eprints.bbk.ac.uk/id/eprint/5369

    Statistics

    Downloads
    Activity Overview
    15Downloads
    295Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item