Corporate governance, excess-cash and firm value: Evidence from ASEAN-5

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2022-12-01 DOI:10.18559/ebr.2022.4.3

Tahir Akhtar

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引用次数: 1

Abstract

Abstract This study investigates the role of the country- and firm-level governance practices on the relationship between excess-cash and firm value in ASEAN-5 markets. Using the Generalized Method of Moment models and a sample of 578 firms from 2010 to 2020 the study finds that excess-cash reduces firm value, indicating high agency costs and low firm value. However, excess-cash motivated by managerial ownership, founder CEO, board independence, shareholder rights and creditor rights increase firm value while excess-cash due to managerial entrenchment and CEODuality reduce firm value. In the sub-sample analyses the study finds that entrenched managers and board size play a less effective role in wasting excess-cash in low-excess-cash firms while independent directors play a higher monitoring role in high-excess-cash firms. In addition, governance at the country-level is more effective than at the firm-level in improving the value of excess-cash in large firms. The study offers unique evidence on the relationship between excess-cash and firm value by integrating corporate governance practices at the firm- and country-levels. The research aids practitioners, academics, policymakers and investors in developing the best liquidity policies to enhance business performance.

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公司治理、现金过剩与公司价值:来自东盟五国的证据

摘要本研究探讨了东盟五国市场中国家和公司层面的治理实践对过剩现金与公司价值之间关系的影响。利用广义矩模型方法，以2010 - 2020年578家企业为样本，研究发现，现金过剩降低了企业价值，表明代理成本高，企业价值低。然而，由管理层所有权、创始人CEO、董事会独立性、股东权利和债权驱动的现金过剩增加了公司价值，而由管理层堑壕和CEO二元性驱动的现金过剩则降低了公司价值。在子样本分析中，研究发现，在现金低过剩的公司中，根深蒂固的经理和董事会规模在浪费多余现金方面的作用不太有效，而在现金高过剩的公司中，独立董事发挥了更高的监督作用。此外，国家一级的治理比公司一级的治理在提高大公司多余现金的价值方面更有效。该研究通过整合公司和国家层面的公司治理实践，为过量现金与公司价值之间的关系提供了独特的证据。该研究有助于从业者、学者、政策制定者和投资者制定最佳的流动性政策，以提高企业绩效。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.