دانلود رایگان مقاله انگلیسی ساختارهای حاکمیتی، دارایی های نقدی و ارزش شرکت در بورس اوراق بهادار غنا - امرالد 2018

Abstract

Purpose – There is an existing relationship among shareholders, boards of directors and management of companies. Corporate governance practices of companies are expected to ensure that this relationship maximises the wealth of shareholders. Differences exist among corporate governance of companies listed on the Ghana Stock Exchange. Companies, for purposes of liquidity, hold cash, but cash holdings also add to the cost of financing, according to working capital theories. The study, thus, sought to examine the relationship between corporate governance practices, ownership structure, cash holdings and firm value. Design/methodology/approach – The study deployed the seemingly unrelated regression to reduce the problem of multicollinearity resulting from the strong relationship between cash reserves and some control variables. Findings – The study found no significant relationship between board size and firm value. Similar findings were also made on the relationship between proportion of non-executive directors on the board and firm value. However, firms audited by the big four audit firms are valued higher by the capital market. Cash holdings of firms negatively affect performance, and this is statistically significant. A positive relationship arises between a firm’s cash holdings and its value as a result of debt financing, even though this is not significant. Originality/value – The study is the first of its kind that deploys Tobin’s Q as a measure of firms’ value to reflect investors’ valuation of firms in Ghana. The study is also the first of its kind to test the interactive effect of debt financing and cash holdings on firm value in Ghana.

5. Conclusion

Corporate governance mechanism, ownership structure and cash holdings are entityspecific factors that introduce unsystematic risk to shareholders or equity participants in the capital market. Hence, the study sought to find out whether these variables significantly influence value of firms, using a sample of companies listed on the GSE. The study used the Tobin’s Q, a relative measure to measure firm value. The study used the SUR and found mixed results for the relationship between corporate governance variables and firm value. Board size of firms and proportion of non-executive directors on firm’s boards has no significant relationship with firm value. These results agree with the findings of Isshaq et al. (2009). The study revealed that firms audited by the big four auditors show higher value than firms audited by the other firms. The results showed that management ownership has a positive and statistically significant relationship with firm value. However, cash holdings of firms listed on the GSE have an identified negative relationship with firm value.