Ownership Concentration, Cash Holding and Firm Value
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 th...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Mashhad: Behzad Hassannezhad Kashani
2015-08-01
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| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_117516_21fa753247e5eb8702d0db3d67a72416.pdf |
| _version_ | 1797690277960351744 |
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| author | Javad Zahedi Elahe Talebi Shadi Laal Aval |
| author_facet | Javad Zahedi Elahe Talebi Shadi Laal Aval |
| author_sort | Javad Zahedi |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-12T01:58:20Z |
| format | Article |
| id | doaj.art-784f9765c01d46a68bfe0d002d404baa |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:58:20Z |
| publishDate | 2015-08-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-784f9765c01d46a68bfe0d002d404baa2023-09-07T21:58:59ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262015-08-0128902912117516Ownership Concentration, Cash Holding and Firm ValueJavad Zahedi0Elahe Talebi1Shadi Laal Aval2Department of Accounting, Islamic Azad University, Mashhad branch, Mashhad, IranDepartment of Accounting, Islamic Azad University, Mashhad branch, Mashhad, IranDepartment of Accounting, Islamic Azad University, Mashhad branch, Mashhad, IranThe 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.https://www.ijmae.com/article_117516_21fa753247e5eb8702d0db3d67a72416.pdfownership concentrationcash holdingfirm valuecorporate governance |
| spellingShingle | Javad Zahedi Elahe Talebi Shadi Laal Aval Ownership Concentration, Cash Holding and Firm Value International Journal of Management, Accounting and Economics ownership concentration cash holding firm value corporate governance |
| title | Ownership Concentration, Cash Holding and Firm Value |
| title_full | Ownership Concentration, Cash Holding and Firm Value |
| title_fullStr | Ownership Concentration, Cash Holding and Firm Value |
| title_full_unstemmed | Ownership Concentration, Cash Holding and Firm Value |
| title_short | Ownership Concentration, Cash Holding and Firm Value |
| title_sort | ownership concentration cash holding and firm value |
| topic | ownership concentration cash holding firm value corporate governance |
| url | https://www.ijmae.com/article_117516_21fa753247e5eb8702d0db3d67a72416.pdf |
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