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Ownership structure, corporate governance and corporate liquidity policy

Author

Listed:
  • Godfred A. Bokpin
  • Zangina Isshaq
  • Francis Aboagye‐Otchere

Abstract

Purpose - The purpose of this paper is to examine the impact of ownership structure and corporate governance on corporate liquidity policy from a developing country perspective, Ghana Stock Exchange (GSE). Design/methodology/approach - The authors adopt multiple regression analysis in estimating the relationship between ownership structure, corporate governance and corporate liquidity policy as well as the impact of corporate governance on insider ownership. Findings - The authors find that foreign share ownership significantly predicts corporate cash holding on the GSE. The empirical result also portrays positive and statistically significant relationship between board size, financial leverage, firm size, profitability and corporate liquidity holding, and a negative and statistically significant relationship between board composition and corporate liquidity holding. The authors also document positive and statistically significant relationship between the various industry classifications namely manufacturing, distribution and the pharmaceutical industry and corporate cash holdings on the GSE but did not however find significant relationship between corporate governance and insider ownership on the GSE. The authors found positive relationship between Tobin's Q and inside ownership. Originality/value - The main value of this paper is to analyze the relationship between ownership structure, corporate governance and corporate liquid policy from a developing country perspective.

Suggested Citation

  • Godfred A. Bokpin & Zangina Isshaq & Francis Aboagye‐Otchere, 2011. "Ownership structure, corporate governance and corporate liquidity policy," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 3(3), pages 262-279, August.
    • Handle: RePEc:eme:jfeppp:v:3:y:2011:i:3:p:262-279
    DOI: 10.1108/17576381111152236
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Collins G. Ntim, 2013. "Corporate Governance, Affirmative Action and Firm Value in Post-apartheid South Africa: A Simultaneous Equation Approach," African Development Review, African Development Bank, vol. 25(2), pages 148-172, June.
    2. Akhtar Tahir, 2022. "Corporate governance, excess-cash and firm value: Evidence from ASEAN-5," Economics and Business Review, Sciendo, vol. 8(4), pages 39-67, December.
    3. Hussein Abedi Shamsabadi & Byung-Seong Min & Richard Chung, 2016. "Corporate governance and dividend strategy: lessons from Australia," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 583-610, October.
    4. Eliasu Nuhu & Abubakar Musah & Damankah Basil Senyo, 2014. "Determinants of Dividend Payout of Financial Firms and Non-Financial Firms in Ghana," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 109-118, July.
    5. Gupta, C.P. & Bedi, Prateek, 2020. "Corporate cash holdings and promoter ownership," Emerging Markets Review, Elsevier, vol. 44(C).
    6. Akbar, Muhammad & Hussain, Shahzad & Ahmad, Tanveer & Hassan, Shoib, 2020. "Corporate Governance and Firm Performance in Pakistan: Dynamic Panel Estimation," CAFE Working Papers 6, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    7. Tola Akinto, 2021. "A systematic review of corporate governance and ownership," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 63-72, September.
    8. Sabeeh Ullah & Yasir Kamal, 2017. "Board Characteristics, Political Connections, and Corporate Cash Holdings: The Role of Firm Size and Political Regime," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 157-179, March.

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