The effect of control-ownership rights and business groups on cash holdings
by Silvia Amélia Mendonça Flores; Igor Bernardi Sonza
International Journal of Economics and Business Research (IJEBR), Vol. 20, No. 4, 2020

Abstract: The purpose of this paper is to investigate the influence of voting and cash flow rights deviations and group affiliation on the cash holdings of Brazilian companies. We employed a panel data analysis for 81 listed Brazilian firms during the period from 2010 to 2017, with Dynamic GMM-Sys. The results report that the greater the deviations between voting and cash flow rights, the higher is the cash holdings, probably related to future projects that provide private benefits. Controllers will have incentives to dispose of company resources (cash) for their interests, to the detriment of minority shareholders. The group affiliation is not a determinant of cash holdings in Brazil. The research brings new perspectives of complex organisational structures, such as companies with deviations of rights.

Online publication date: Mon, 09-Nov-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com