Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan

This study aims to examine the relationship between the mechanisms of corporate governance (ownership structure, board characteristics, audit committee, and audit quality) on cash holdings in Jordan. Financial data from 2011 to 2017 was extrapolated from the companies listed under the industrial and...

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Main Author:	Alghadi, Mohammad Yousef Mohammad
Format:	Thesis
Language:	eng eng
Published:	2019
Subjects:	HF5001-6182 Business
Online Access:	https://etd.uum.edu.my/10316/1/permission%20to%20deposit-grant%20the%20permission-902157.pdf https://etd.uum.edu.my/10316/2/s902157_01.pdf
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id	my-uum-etd.10316
record_format	uketd_dc
spelling	my-uum-etd.103162023-02-12T08:01:24Z Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan 2019 Alghadi, Mohammad Yousef Mohammad Mazlan, Ahmad Rizal Azhari, Adilah School of Economics, Finance & Banking School of Economics, Finance and Banking HF5001-6182 Business HF5667 Professional Ethics. Auditors. This study aims to examine the relationship between the mechanisms of corporate governance (ownership structure, board characteristics, audit committee, and audit quality) on cash holdings in Jordan. Financial data from 2011 to 2017 was extrapolated from the companies listed under the industrial and services sector on Amman Stock Exchange, resulting in the final sample of 609 firms-year observations. Moreover, this study uses firm size, leverage and profitability as control variables. Two main theories, namely, agency theory and trade-off theory, are used to develop the framework of the study. By using generalized least square random-effect, the multiple regression analysis revealed a positive and significant relationship between multiple directorship, board gender, ownership concentration, managerial ownership, audit committee independence, audit tenure, audit fees, audit firm size, audit partner education background and cash holdings. These results indicate that corporate governance plays a vital role in enhancing the level of cash holding and reducing agency conflict. This study has several empirical implications for policy makers, investors, regulators, and market participants to encourage firms in Jordan to employ active audit committee who can provide better monitoring services and also benefit the firms with their experiences. It is also worth noting that the regulations need to specify the exact duties of audit committee independence and its selection process. In addition, these regulations need to be activated by the policy makers to ensure that firms comply with their requirements. Furthermore, this study opens up avenues for more studies on cash holding not only in Jordan, but also in other countries where this area of study is lacking. Moreover, developing countries are in need of providing better compliance with international governance standards. This can be done by adopting good governance practices, improving shareholder protection and activating laws and regulations that enhance cash holding. 2019 Thesis https://etd.uum.edu.my/10316/ https://etd.uum.edu.my/10316/1/permission%20to%20deposit-grant%20the%20permission-902157.pdf text eng staffonly https://etd.uum.edu.my/10316/2/s902157_01.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mazlan, Ahmad Rizal Azhari, Adilah
topic	HF5001-6182 Business HF5001-6182 Business
spellingShingle	HF5001-6182 Business HF5001-6182 Business Alghadi, Mohammad Yousef Mohammad Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan
description	This study aims to examine the relationship between the mechanisms of corporate governance (ownership structure, board characteristics, audit committee, and audit quality) on cash holdings in Jordan. Financial data from 2011 to 2017 was extrapolated from the companies listed under the industrial and services sector on Amman Stock Exchange, resulting in the final sample of 609 firms-year observations. Moreover, this study uses firm size, leverage and profitability as control variables. Two main theories, namely, agency theory and trade-off theory, are used to develop the framework of the study. By using generalized least square random-effect, the multiple regression analysis revealed a positive and significant relationship between multiple directorship, board gender, ownership concentration, managerial ownership, audit committee independence, audit tenure, audit fees, audit firm size, audit partner education background and cash holdings. These results indicate that corporate governance plays a vital role in enhancing the level of cash holding and reducing agency conflict. This study has several empirical implications for policy makers, investors, regulators, and market participants to encourage firms in Jordan to employ active audit committee who can provide better monitoring services and also benefit the firms with their experiences. It is also worth noting that the regulations need to specify the exact duties of audit committee independence and its selection process. In addition, these regulations need to be activated by the policy makers to ensure that firms comply with their requirements. Furthermore, this study opens up avenues for more studies on cash holding not only in Jordan, but also in other countries where this area of study is lacking. Moreover, developing countries are in need of providing better compliance with international governance standards. This can be done by adopting good governance practices, improving shareholder protection and activating laws and regulations that enhance cash holding.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Alghadi, Mohammad Yousef Mohammad
author_facet	Alghadi, Mohammad Yousef Mohammad
author_sort	Alghadi, Mohammad Yousef Mohammad
title	Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan
title_short	Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan
title_full	Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan
title_fullStr	Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan
title_full_unstemmed	Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan
title_sort	impact of board, ownership and audit characteristics on cash holdings for listed companies in jordan
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2019
url	https://etd.uum.edu.my/10316/1/permission%20to%20deposit-grant%20the%20permission-902157.pdf https://etd.uum.edu.my/10316/2/s902157_01.pdf
_version_	1776103789281935360

Impact of board, ownership and audit characteristics on cash holdings for listed companies in Jordan

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