The Impact of Internal Corporate Governance Mechanisms on Cash Holdings- An Empirical Study on Egyptian Listed Companies | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Volume 6, Issue 2 - Serial Number 1, July 2025, Pages 727-769 PDF (1.87 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2025.381056.2249 | ||
| Authors | ||
| Khalid Mohamed Nashi* 1; Eman Mohamed Saad Eldeen2 | ||
| 1Master of Science Student, Faculty of Management and Technology, Arab Academy for Science, Technology, and Maritime Transport | ||
| 2Faculty of Commerce, Beni-Suef University | ||
| Abstract | ||
| Purpose: The study examines the impact of internal corporate governance mechanisms on corporate cash holdings among the Egyptian stock market. Designs and methodology: The research used secondary data obtained from company’s disclosure reports and financial statements of 37 firms listed in the Egyptian stock market in the period from 2017 to 2022 with a total of 222 firm-year observations. The study excluded banks, insurance firms and financial institutions from the study as they have special nature that governs their institutions. Findings and Recommendations: The results showed that board size and board independence have a significant negative impact on cash holdings, audit committee size has an insignificant impact on cash holdings, and managerial ownership has a significant positive impact on cash holdings. The study recommends enhancing and activating the role of audit committee, additionally giving more attention and oversight to firms with a high percentage of managerial ownership due to the risk of acting in an opportunistic way by managers. Moreover, it is recommended that firms maintain a large percentage of independent directors on their board as that board independence is one of the most effective governance mechanisms. Furthermore, the researcher suggests that keeping board sizes on the larger side may encourage improved supervision and governance. Originality and value: This study contributes to the accounting literature through its contributions to examining the impact of internal corporate governance mechanisms on corporate cash holdings among the Egyptian stock market, which in turn may contribute to reducing the research gap and controversy. | ||
| Keywords | ||
| Board Size; Board Independence; Audit Committee Size; Managerial Ownership; Corporate Cash holdings | ||
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