CORPORATE GOVERNANCE, CASH HOLDINGS AND FIRM VALUE in Emerging markets: Evidence from Indonesia
Indri Ayu Lestari, Nugraha

Indonesia University of Education

Abstract

This study aims to analyzing the influence of corporate governance on cash holdings and firm value in emerging market. This study was a test of three models hypothesis of agency problem, which are flexibility hypothesis, spending hyphothesis and shareholder hypothesis. The research was conducted to 365 non-financial companies listed in Indonesia Stock Exchange 2010-2017. The research variables included (1) independent variables are the size of the board of directors, independent commissioners and managerial commissioners; (2) there are two kinds of dependent variables. The first dependent variable is cash holding proxyed with the natural logarithm of the total cash at year-end closing. The second dependent variable is firm value proxied with Tobins Q calculation. And (3) the Family Pyramid as a moderation variables and control variables are leverage, net working capital, sales growth and capital spending.

Keywords: Corporate Governance, Cash Holdings, Firm Value.

Topic: Financial Management and Accounting