Abstract
This study investigated the impact of firm different type of ownership
structure on firm cash holdings while using sample data randomly
collected for the 180 firms listed in KSE-All index for the time period of
eight years ranging from 2003 to 2010. The analysis suggested that
firms with higher institutional ownership have high amount of cash
holdings. Firm managerial ownership has negatively related with the
cash holdings. The more dispersed ownership structure of firm would
lead the manager to keep more cash to be liquid enough and lower
chance of bankruptcy. Higher the amount of block holders the lower
will be the cash kept by the firm due to strong monitoring mechanism of
the block holders. The foreign shareholders would preferred cash
dividend as to capital gain therefore there is negative relationship
between the cash holdings with foreign ownership and dividend payout.
HamidUllah, Shafiq ur Rehman, Gouhar Saeed, Alam Zeb. (2014) Corporate Ownership Structure and Firm Excess Cash Holdings: Evidenced from Emerging Markets, Pakistan, Abasyn Journal of Social Sciences, Volume-07, Issue-2.
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