Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin

The study aims to investigate the relationship between cash holdings and leverage of Malaysian companies. The main objective of this study is to investigate the relationship between cash holdings and leverage in the context of Malaysian firms. The present study also attempts to compare the cash h...

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Main Author:	Borhanuddin, Rahayu Izwani
Format:	Thesis
Language:	English
Published:	2007
Subjects:	Periodicals Societies Serials Malaysia
Online Access:	https://ir.uitm.edu.my/id/eprint/4309/1/TM_RAHAYU%20IZWANI%20BORHANUDDIN%20AC%2007_5%201.pdf
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id	my-uitm-ir.4309
record_format	uketd_dc
spelling	my-uitm-ir.43092022-12-29T06:45:00Z Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin 2007 Borhanuddin, Rahayu Izwani Periodicals. Societies. Serials Malaysia The study aims to investigate the relationship between cash holdings and leverage of Malaysian companies. The main objective of this study is to investigate the relationship between cash holdings and leverage in the context of Malaysian firms. The present study also attempts to compare the cash holdings between companies that having low level of ownership concentration and high level of board independence (good corporate governance) and companies 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 are used as corporate cash holdings determinants. The final sample of the study consists 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 test the relationship between cash holdings and leverage. The results show that there are significant negative relationships between cash holdings and leverage with or without control variables. In addition, this study also found that the companies that have poor corporate governance hold a high level of cash compared to companies that practice good corporate governance. Overall it can be concluded; leverage acts as a substitute of cash holdings and play important part of cash management policies. 2007 Thesis https://ir.uitm.edu.my/id/eprint/4309/ https://ir.uitm.edu.my/id/eprint/4309/1/TM_RAHAYU%20IZWANI%20BORHANUDDIN%20AC%2007_5%201.pdf text en public masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Periodicals Societies Serials Malaysia
spellingShingle	Periodicals Societies Serials Malaysia Borhanuddin, Rahayu Izwani Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin
description	The study aims to investigate the relationship between cash holdings and leverage of Malaysian companies. The main objective of this study is to investigate the relationship between cash holdings and leverage in the context of Malaysian firms. The present study also attempts to compare the cash holdings between companies that having low level of ownership concentration and high level of board independence (good corporate governance) and companies 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 are used as corporate cash holdings determinants. The final sample of the study consists 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 test the relationship between cash holdings and leverage. The results show that there are significant negative relationships between cash holdings and leverage with or without control variables. In addition, this study also found that the companies that have poor corporate governance hold a high level of cash compared to companies that practice good corporate governance. Overall it can be concluded; leverage acts as a substitute of cash holdings and play important part of cash management policies.
format	Thesis
qualification_level	Master's degree
author	Borhanuddin, Rahayu Izwani
author_facet	Borhanuddin, Rahayu Izwani
author_sort	Borhanuddin, Rahayu Izwani
title	Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin
title_short	Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin
title_full	Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin
title_fullStr	Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin
title_full_unstemmed	Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin
title_sort	cash holdings, leverage, ownership concentration and board independence : evidence from malaysia / rahayu izwani borhanuddin
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2007
url	https://ir.uitm.edu.my/id/eprint/4309/1/TM_RAHAYU%20IZWANI%20BORHANUDDIN%20AC%2007_5%201.pdf
_version_	1783733108667842560

Cash holdings, leverage, ownership concentration and board independence : evidence from Malaysia / Rahayu Izwani Borhanuddin

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