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Title:	Determinants of cash holding level, excess cash and relationship between excess cash and shareholdes's value creation-evidence from Malaysia
Authors:	Noraliza Abdul Wahab (P024040)
Supervisor:	Noor Azuddin Yakob, Assoc. Prof Dr.
Keywords:	Stockholders Cash management Universiti Kebangsaan Malaysia -- Dissertations Dissertations, Academic -- Malaysia
Issue Date:	8-Sep-2021
Description:	The shareholders value maximization principle becomes a strong motivation in building the corporate strategy. It intensely supports the practice of value -based management through the conduct of shareholders value analysis. These founding blocks promotes the effective and efficient allocation and utilization of the corporate's internal resources especially the liquid assets within the firm to justify that firm register good performance; thereby creating value to the shareholders as well as appreciating their wealth from the invested capital. This study contributes as an attempt to link the cash management practices as part of resource management by firms in Malaysia to the shareholders value analysis approach by exploring the effect of holding excess cash on the value creation. The interest on Malaysian public listed firms on the Bursa Malaysia is undertaken to answer to the need for more study to be conducted on the topics in this region. Moreover, the cash and liquidity landscape in the South East Asian, particularly Malaysia has shown a cash hoarding trend in between 2010 to 2017, when there has been no serious economic or financial setback affecting the business during the period. The multiple regression technic with panel data is applied to probe the hypotheses in arriving at the objectives of the study which are (1) to determine the key role that affect the cash holding level by firms in Malaysia and identify the excess cash, (2) to establish the relationship between the excess cash and shareholders value creation and to investigate the effect of the cash holding behavior on the value creation, and (3) to examine the interaction effect of managerial ownership by the directors on the relationship between excess cash and value creation. The findings show that (1)with regards to the determination of cash holding level , the findings from previous studies on the effect of the determinants cannot be generalized and the level of cash holding in Malaysia is explained more by the demand than the supply of cash and other firm's characteristics (2) the cash management practices does not have direct effect on the shareholders value creation and (3) the existence of managerial ownership by the directors moderates the influence the effect of excess cash on shareholders value creation. It is found that the agency theory is dominant in explaining the relationship. Value creation measured by the economic value added, in line with positive market value added (MVA provide alternative measure to the practitioners including the investors and business analysts in firm's performance evaluation. Moreover, the disclosure of EVA and MVA as compliance measure in corporate reporting would provide the regulator with avenues to promotes transparency and build more confidence amongst market participants,Ph.D
Pages:	221
Call Number:	HD2744.N637 2021 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Graduate School of Business / Pusat Pengajian Siswazah Perniagaan

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