 Ownership Concentration, Cash Holding and Firm ValueJavad Zahedi, Elahe Talebi and Shadi Laal Aval International Journal of Management, Accounting and Economics, 2015, vol. 2, issue 8, 902-912 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. Keywords: ownership concentration; Cash Holding; Firm Value; Corporate Governance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:air:journl:v:2:y:2015:i:8:p:902 Access Statistics for this article More articles in International Journal of Management, Accounting and Economics from International Journal of Management, Accounting and Economics |
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