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EFFECT OF CORPORATE DIVERSIFICATION ON THE VALUE OF CASH HOLDING

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05 Pages : 51-60

http://dx.doi.org/10.31703/ger.2023(VIII-IV).05      10.31703/ger.2023(VIII-IV).05      Published : Dec 2023

Effect of Corporate Diversification on the Value of Cash Holding

Abstract

    The purpose of this research is to examine the relationship between corporate diversification on the value of cash holding. Furthermore, the research also examined the corporate diversification‐value of cash holding relationship with good and poor corporate governance (CG); industrial competitiveness and industrial non‐competitiveness; family and non‐family oriented firms; Sharia and non‐Sharia compliant firms. The data is used for the years 2017 to 2022 of non‐financial firms registered on the Pakistan Stock Exchange. The result predicts that corporate diversification exerts a negative effect on the value of cash holding but this negative relationship becomes positive in good‐governed firms, completive industries and Sharia label firms. On the other hand, corporate diversification exerts a negative effect on the value of cash holding in family‐oriented firms due to agency problems.

    Corporate Diversification, Corporate Governance, Competition, Sharia Compliant Firms, Pakistan

    (1) Idrees Ali Shah
    Lecturer, Department of Business and Management Sciences, The University of Agriculture, Peshawar, KP, Pakistan.
    (2) Saleem Ullah Khan
    Lecturer, Department of Business and Management Sciences, The University of Agriculture, Peshawar, KP, Pakistan.
    (3) Muhammad Fahad Siddiqi
    Lecturer, Department of Business and Management Sciences, The University of Agriculture, Peshawar, KP, Pakistan.
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Cite this article

APA

CHICAGO

    CHICAGO : Shah, Idrees Ali, Saleem Ullah Khan, and Muhammad Fahad Siddiqi. 2023. "Effect of Corporate Diversification on the Value of Cash Holding." Global Economics Review, VIII (IV): 51-60 doi: 10.31703/ger.2023(VIII-IV).05

HARVARD

    HARVARD : SHAH, I. A., KHAN, S. U. & SIDDIQI, M. F. 2023. Effect of Corporate Diversification on the Value of Cash Holding. Global Economics Review, VIII, 51-60.

MHRA

    MHRA : Shah, Idrees Ali, Saleem Ullah Khan, and Muhammad Fahad Siddiqi. 2023. "Effect of Corporate Diversification on the Value of Cash Holding." Global Economics Review, VIII: 51-60

MLA

    MLA : Shah, Idrees Ali, Saleem Ullah Khan, and Muhammad Fahad Siddiqi. "Effect of Corporate Diversification on the Value of Cash Holding." Global Economics Review, VIII.IV (2023): 51-60 Print.

OXFORD

    OXFORD : Shah, Idrees Ali, Khan, Saleem Ullah, and Siddiqi, Muhammad Fahad (2023), "Effect of Corporate Diversification on the Value of Cash Holding", Global Economics Review, VIII (IV), 51-60

TURABIAN

    TURABIAN : Shah, Idrees Ali, Saleem Ullah Khan, and Muhammad Fahad Siddiqi. "Effect of Corporate Diversification on the Value of Cash Holding." Global Economics Review VIII, no. IV (2023): 51-60. https://doi.org/10.31703/ger.2023(VIII-IV).05