IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v20y2020i4p375-390.html
   My bibliography  Save this article

The effect of control-ownership rights and business groups on cash holdings

Author

Listed:
  • Silvia Amélia Mendonça Flores
  • Igor Bernardi Sonza

Abstract

The purpose of this paper is to investigate the influence of voting and cash flow rights deviations and group affiliation on the cash holdings of Brazilian companies. We employed a panel data analysis for 81 listed Brazilian firms during the period from 2010 to 2017, with Dynamic GMM-Sys. The results report that the greater the deviations between voting and cash flow rights, the higher is the cash holdings, probably related to future projects that provide private benefits. Controllers will have incentives to dispose of company resources (cash) for their interests, to the detriment of minority shareholders. The group affiliation is not a determinant of cash holdings in Brazil. The research brings new perspectives of complex organisational structures, such as companies with deviations of rights.

Suggested Citation

  • Silvia Amélia Mendonça Flores & Igor Bernardi Sonza, 2020. "The effect of control-ownership rights and business groups on cash holdings," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 20(4), pages 375-390.
    • Handle: RePEc:ids:ijecbr:v:20:y:2020:i:4:p:375-390
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=111098
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:20:y:2020:i:4:p:375-390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.