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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 12 Issue 1 pp. 67-74 , 2022

Cash holding and investment efficiency nexus for financially distressed firms: The moderating role of corporate governance Pages 67-74 Right click to download the paper Download PDF

Authors: Muhammad Aksar, Shoib Hassan, Muhammad Bilal Kayani, Suleman Khan, Tanvir Ahmed

DOI: 10.5267/j.msl.2021.7.001

Keywords: Cash holding, Investment Efficiency, Corporate Governance, Financial distress, Asian Emerging Economies

Abstract: The current research study aims to analyze the impact of cash holding on investment efficiency by moderating the role of corporate governance among financially distressed firms. The data for 14 years (2006-2019) is gathered from 400 companies of two Asian emerging economies (Pakistan and India). The results are obtained by applying a generalized method of moments (GMM), which postulates that corporate governance improves cash holding with investment efficiency in the Indian scenario and decreases in the Pakistani scenario. Concerning financially distressed firms, corporate governance strengthens the relationship of cash holding with investment efficiency in the Pakistani context but showing no moderating role in the Indian scenario. The results are helpful in cash management decisions to minimize the agency issue and to avail investment opportunities.

How to cite this paper
Aksar, M., Hassan, S., Kayani, M., Khan, S & Ahmed, T. (2022). Cash holding and investment efficiency nexus for financially distressed firms: The moderating role of corporate governance.Management Science Letters , 12(1), 67-74.

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Journal: Management Science Letters | Year: 2022 | Volume: 12 | Issue: 1 | Views: 3852 | Reviews: 0

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