THE DETEMINANTS OF RELATIONSHIP OF CASH HOLDING AND PERFORMANCE OF COMPANIES LISTED IN THE STOCK EXCHANGE OF THAILAND
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Abstract
The purpose of this research was to study the factors that determine the cash holdings and the relationship of cash holding to the performance of the Public Limited Company of the Stock Exchange of Thailand. This study is quantitative research which collects data from the samples of Public Limited Company on the Stock Exchange of Thailand from 2008 – 2019. (301 companies), a total of 3,612 observations. Panel data analysis was employed to analyze data and hypothesize test.
The results found that the firm characteristics were related to cash holdings. Investment opportunities and cashflow were positive related to cash holdings, while leverage and dividend payment were negative related to cash holdings. Regarding to corporate governance factors, companies with CEO duality have more cash holdings and institutional ownership have less cash holdings. Moreover, the results also indicated that cash holdings affects firm’s performance which measured by accounting-based and market-based. This research contributed to the company to realize the importance of cash holdings. Cash holdings improved firm’s financial liquidity, generated shareholder’s returns, and increased firm’s value.
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