TY - JOUR
T1 - Ownership structure, corporate governance and corporate liquidity policy
T2 - Evidence from the Ghana Stock Exchange
AU - Bokpin, Godfred A.
AU - Isshaq, Zangina
AU - Aboagye‐Otchere, Francis
N1 - Publisher Copyright:
© 2011, Emerald Group Publishing Limited.
PY - 2011/8/9
Y1 - 2011/8/9
N2 - 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.
AB - 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.
KW - Cash holdings
KW - Corporate governance
KW - Ghana
KW - Ownership structure
UR - http://www.scopus.com/inward/record.url?scp=85046886632&partnerID=8YFLogxK
U2 - 10.1108/17576381111152236
DO - 10.1108/17576381111152236
M3 - Article
AN - SCOPUS:85046886632
SN - 1757-6385
VL - 3
SP - 262
EP - 279
JO - Journal of Financial Economic Policy
JF - Journal of Financial Economic Policy
IS - 3
ER -