الفهرس 
Title : Examining the Impact of Corporate Governance and Earnings Quality on Cash Holding: An Empirical Study
AbstractOnly 14 pages are availabe for public view
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Abstract
from an economic-rationale viewpoint, firms tend to hold cash as a source of financial independence to avoid liquidity shortages and continue operational needs. Alternatively, large cash buffers can suggest agency conflicts and information asymmetry problems, because high cash balances could be a matter of managerial discretion. By applying a well-functioning corporate governance structure and high quality of reported earnings, the likelihood of cash wastage would be reduced and appropriately determined. In 2005, the Egyptian market has introduced the corporate governance law and the Egyptian economy has recently witnessed upheaval events that have led to inflationary pressures. Therefore, the need for cash holdings can be highly favored in those uncertain economic environments. Subsequently, this study examines how corporate governance and earnings quality play substitution roles in determining corporate cash holdings. Using a sample comprises of 57 Egyptian firms from 2014 till 2018, the results suggest that the Egyptian firms tend to retain cash for investment and financial purposes. By assessing the impact of a comprehensive picture of eleven corporate governance proxies, the provided evidence supports that good corporate governance leads to higher cash reserves for economic expansions purposes not necessarily cash wastage. More evidence implies earnings quality affects the level of cash holdings inversely.The phenomenon of fluctuations in level of cash holdings would be noticed under poor earnings quality is confirmed. Finally, corporate governance and earnings quality allow accumulating cash reserves. Findings suggest that cash assets might be favored for overcoming economic pressures that the Egyptian market has recently witnessed. The findings are robust to alternative measures of cash holdings