We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
State Ownership and Corporate Cash Holdings.
- Authors
Chen, Ruiyuan (Ryan); El Ghoul, Sadok; Guedhami, Omrane; Nash, Robert
- Abstract
Using a unique sample of newly privatized firms from 59 countries, this article provides new evidence about the agency costs of state ownership and new insight into the corporate governance role of country-level institutions. Consistent with agency theory, we find strong and robust evidence that state ownership is positively related to corporate cash holdings. Moreover, we find that the strength of country-level institutions affects the relation between state ownership and the value of cash holdings. In particular, as state ownership increases, markets discount the value of cash holdings more in countries with weaker institutions.
- Subjects
CASH position of corporations; GOVERNMENT business enterprises; AGENCY costs; CORPORATE governance; AGENCY theory; PRIVATIZATION
- Publication
Journal of Financial & Quantitative Analysis, 2018, Vol 53, Issue 5, p2293
- ISSN
0022-1090
- Publication type
Article
- DOI
10.1017/S0022109018000236