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Board Characteristics, Political Connections, and Corporate Cash Holdings: The Role of Firm Size and Political Regime

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  • Sabeeh Ullah

    (SZABIST, Islamabad)

  • Yasir Kamal

    (Institute of Management Sciences, Peshawar)

Abstract

This paper examines the relationship of board characteristics with cash holding, and the interplay of political connections on this relationship. For this purpose, panel data of 150 non-financial firms ranging from 2001 to 2014 are used. We document that board characteristics are important predictors of a firm’s cash holding in Pakistan. Theoretically, the findings mainly support agency theory. Consistent with prior studies, our empirical results show some statistical variations in large and small size sampled firms, and dictator and democratic regimes. Moreover, we investigate the interplay of political connections on the relationship of board characteristics and cash holding. Our findings support the complementary effect hypothesis

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  • Sabeeh Ullah & Yasir Kamal, 2017. "Board Characteristics, Political Connections, and Corporate Cash Holdings: The Role of Firm Size and Political Regime," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 157-179, March.
    • Handle: RePEc:bec:imsber:v:9:y:2017:i:1:p:157-179
    DOI: dx.doi.org/10.22547/BER/9.1.9
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    3. Sattar Khan & Yasir Kamal & Shahid Hussain & Muhammad Abbas, 2022. "Corporate governance looking back to look forward in Pakistan: a review, synthesis and future research agenda," Future Business Journal, Springer, vol. 8(1), pages 1-32, December.
    4. Hussain, Shahzad & Akbar, Muhammad & Malik, Qaisar & Ahmad, Tanveer & Abbas, Nasir, 2021. "Downside Systematic Risk in Pakistani Stock Market: Role of Corporate Governance, Financial Liberalization and Investor Sentiment," CAFE Working Papers 14, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    5. Akbar, Muhammad & Hussain, Shahzad & Ahmad, Tanveer & Hassan, Shoib, 2020. "Corporate Governance and Firm Performance in Pakistan: Dynamic Panel Estimation," CAFE Working Papers 6, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.

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