Ownership Concentration, Cash Holding and Firm Value
Publish place: International Journal of Management, Accounting and Economics (IJMAE)، Vol: 2، Issue: 8
Publish Year: 1394
نوع سند: مقاله ژورنالی
زبان: English
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شناسه ملی سند علمی:
JR_IJMAE-2-8_011
تاریخ نمایه سازی: 15 شهریور 1395
Abstract:
The purpose of the study is to explore the relationship between ownership concentration and firm value in the Tehran Stock Exchange (TSE). The previous research indicates that ownership structure as an external corporate governance mechanism can influence firm value. In this study, the effect of the type of ownership on company assessment is examined along with level of cash holding. It is expected that firm value will increase as management ownership increases by reducing cash holdings. We also predict firm value is lower in companies with high cash holding and having ownership concentration. In the study, using financial statement information of companies listed on the TSE from 2004 to 2013, the relationship of this subject is addressed. The results of regression analysis in support of the hypothesis indicate firm value declines as ownership concentration increases when company’s cash holding mounts. On the whole, the results of the study shows that level of cash holdings which goes hand in hand with level of ownership concentration can reduce firm value.
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Authors
Javad Zahedi
Department of Accounting, Islamic Azad University, Mashhad branch, Mashhad, Iran
Elaheh Talebi
Department of Accounting, Islamic Azad University, Mashhad branch, Mashhad, Iran
Shadi Laal Aval
Department of Accounting, Islamic Azad University, Mashhad branch, Mashhad, Iran