Financial crisis, shareholder protection and cash holdings

Quoc Trung Tran ()

Research in International Business and Finance, 2020, vol. 52, issue C

Abstract: In this paper, I investigate the relationship between shareholder protection and corporate cash holdings under the impact of the global financial crisis. With a sample of 192,807 observations across 40 countries during the period 2002–2015, I find that the global financial crisis mitigates the controlling effect of shareholder protection on corporate cash holdings. In addition, this mitigating role is stronger in financially constrained firms. Overall, the results suggest that managers are more likely to expropriate shareholders through corporate liquidity policy during a financial crisis.

Keywords: Financial crisis; Shareholder protection; Cash holdings; Corporate governance (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:52:y:2020:i:c:s0275531919307214

DOI: 10.1016/j.ribaf.2019.101131

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