Moderating Effect of Corporate Governance and Ownership Structure on Relationship Between Cash Holdings and Firm Performance
Keywords:
Moderating effect, corporate governance, state ownership, family ownership, ownership concentration, competitive conditions, economic conditionsAbstract
This study investigates the moderating effect of corporate governance and ownership structure on the relationship between cash holdings and firm performance. The factors of the study include corporate governance, state ownership, family ownership, ownership concentration, competitive conditions, and economic conditions, by considering a sample of publicly listed companies on The Stock Exchange of Thailand from 2011 to 2020. The dataset used in this study comprises 4,611 observations from 483 firms, which were examined through fixed-effect panel regression analysis. The results of this study show that the factors of economic conditions and family ownership do not significantly moderate the relationship of cash holdings and firm performance, which differs from the hypothesis. Meanwhile, the factors of corporate governance and ownership concentration exhibit a negative moderating effect on this relationship. Furthermore, the factors of state ownership and competitive conditions positively moderate the relationship of cash holdings and firm performance.
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