The threat of political extraction and corporate cash holdings: The case of the GCC countries

References

• Abdallah, A. A.-N., & Ismail, A. K. (2017). Corporate governance practices, ownership structure, and corporate performance in the GCC countries. Journal of International Financial Markets, Institutions and Money, 46(January), 98–17. https://doi.org/10.1016/j.intfin.2016.08.004
   Google Scholar
• Acharya, V. V., Almeida, H., & Campello, M. (2013). Aggregate risk and the choice between cash and lines of credit. The Journal of Finance, 68(5), 2059–2116. https://doi.org/10.1111/jofi.12056
   Web of Science ®Google Scholar
• Al-Hadi, A., Eulaiwi, B., Al-Yahyaee, K. H., Duong, L., & Taylor, G. (2020). Investment committees and corporate cash holdings. The North American Journal of Economics and Finance, 54(November), 101260. https://doi.org/10.1016/j.najef.2020.101260
   Google Scholar
• Almeida, H., Campello, M., Cunha, I., & Weisbach, M. (2014). Corporate liquidity management: A conceptual framework and survey. The Annual Review of Financial Economics, 6(December), 135–162. https://doi.org/10.1146/annurev-financial-110613-034502
   Google Scholar
• Almeida, H., Campello, M., & Weisbach, M. (2004). The cash flow sensitivity of cash. The Journal of Finance, 59(4), 1777–1804. https://doi.org/10.1111/j.1540-6261.2004.00679.x
   Web of Science ®Google Scholar
• Al-Najjar, B., & Clark, E. (2017). Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices. Research in International Business and Finance, 39(1), 1–12. https://doi.org/10.1016/j.ribaf.2016.07.030
   Google Scholar
• Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V. (2014). Bribe payments and innovation in developing countries: Are innovating firms disproportionately affected? Journal of Financial and Quantitative Analysis, 49(1), 51–75. https://doi.org/10.1017/S002210901400026X
   Web of Science ®Google Scholar
• Bates, T. W., Chang, C.-H., & Chi, J. D. (2018). Why has the value of cash increased over time? Journal of Financial and Quantitative Analysis, 53(2), 749–787. https://doi.org/10.1017/S002210901700117X
   Web of Science ®Google Scholar
• Bates, T. W., Khale, K. M., & Stulz, R. M. (2009). Why do US firms hold so much more cash than they used to? The Journal of Finance, 64(5), 1985–2021. https://doi.org/10.1111/j.1540-6261.2009.01492.x
   Web of Science ®Google Scholar
• Bigelli, M., & Sánchez-Vidal, J. (2012). Cash holdings in private firms. Journal of Banking & Finance, 36(1), 26–35. https://doi.org/10.1016/j.jbankfin.2011.06.004
   Web of Science ®Google Scholar
• Boubakri, N., El Ghoul, S., & Saffar, W. (2013). Cash holdings of politically connected firms. Journal of Multinational Financial Management, 23(4), 338–355. https://doi.org/10.1016/j.mulfin.2013.06.002
   Google Scholar
• Bugshan, A., Alnori, F., & Bakry, W. (2021). Shariah compliance and corporate cash holdings. Research in International Business and Finance, 56(April), 101383. https://doi.org/10.1016/j.ribaf.2021.101383
   Google Scholar
• Cai, W., Hu, F., Xu, F., & Zheng, L. (2021). Anti-corruption campaign and corporate cash holdings: Evidence from China. Emerging Markets Review, 51(Part A), 100843. https://doi.org/10.1016/j.ememar.2021.100843
   Google Scholar
• Caprio, L., Faccio, M., & McConnell, J. J. (2013). Sheltering corporate assets from political extraction. The Journal of Law, Economics, and Organization, 29(2), 332–354. https://doi.org/10.1093/jleo/ewr018
   Web of Science ®Google Scholar
• Chen, R., El Ghoul, S., Guedhami, O., & Nash, R. (2018). State ownership and corporate cash holdings. Journal of Financial and Quantitative Analysis, 53(5), 2293–2334. https://doi.org/10.1017/S0022109018000236
   Web of Science ®Google Scholar
• Chen, R., Guedhami, O., Yang, Y., & Zaynutdinova, G. R. (2020). Corporate governance and cash holdings: Evidence from worldwide board reforms. Journal of Corporate Finance, 65(December), 101771. https://doi.org/10.1016/j.jcorpfin.2020.101771
   Google Scholar
• Chen, D., Li, S., Xiao, J. Z., & Zou, H. (2014). The effect of government quality on corporate cash holdings. Journal of Corporate Finance, 27(August), 384–400. https://doi.org/10.1016/j.jcorpfin.2014.05.008
   Google Scholar
• Cheung, Y. L., Rau, P. R., & Stouraitis, A. (2012). How much do firms pay as bribes and what benefits do they get? Evidence from corruption cases worldwide. National Bureau of Economic Research.
   Google Scholar
• Diaw, A. (2021). Corporate cash holdings in emerging markets. Borsa Istanbul Review, 21(2), 139–148. https://doi.org/10.1016/j.bir.2020.09.005
   Web of Science ®Google Scholar
• Dittmar, A., Mahrt-Smith, J., & Servaes, H. (2003). International corporate governance and corporate cash holdings. The Journal of Financial and Quantitative Analysis, 38(1), 111–134. https://doi.org/10.2307/4126766
   Web of Science ®Google Scholar
• Eulaiwi, B., Al-Hadi, A., Taylor, G., Al-Yahyaee, K. H., & Evans, J. (2016). Multiple directorships, family ownership and the board nomination committee: International evidence from the GCC. Emerging Markets Review, 28(September), 61–88. https://doi.org/10.1016/j.ememar.2016.06.004
   Google Scholar
• Ferreira, M. A., & Vilela, A. S. (2004). Why do firms hold cash? Evidence from EMU countries. European Financial Management, 10(2), 295–319. https://doi.org/10.1111/j.1354-7798.2004.00251.x
   Google Scholar
• Fisman, R., & Svensson, J. (2007). Are corruption and taxation really harmful to growth? Firm level evidence. Journal of Development Economics, 83(1), 63–75. https://doi.org/10.1016/j.jdeveco.2005.09.009
   Web of Science ®Google Scholar
• Goodell, J. W., Goyal, A., & Urquhart, A. (2021). Uncertainty of uncertainty and firm cash holdings. Journal of Financial Stability, 56(October), 100922. https://doi.org/10.1016/j.jfs.2021.100922
   Google Scholar
• Guizani, M., & Ajmi, A. N. (2021). Do macroeconomic conditions affect corporate cash holdings and cash adjustment dynamics? Evidence from GCC countries. International Journal of Emerging Markets, Advance Online Publication. https://doi.org/10.1108/IJOEM-03-2020-0291.
   Web of Science ®Google Scholar
• Guney, Y., Ozkan, A., & Ozkan, N. (2007). International evidence on the non-linear impact of leverage on corporate cash holdings. Journal of Multinational Financial Management, 17(1), 45–60. https://doi.org/10.1016/j.mulfin.2006.03.003
   Google Scholar
• Hanieh, A. (2018). Money, markets, and monarchies: The gulf cooperation council and the political economy of the contemporary Middle East. Cambridge University Press.
   Google Scholar
• Harford, J., Mansi, S. A., & Maxwell, W. F. (2008). Corporate governance and firm cash holdings in the US. Journal of Financial Economics, 87(3), 535–555. https://doi.org/10.1016/j.jfineco.2007.04.002
   Web of Science ®Google Scholar
• Hertog, S. (2013). The private sector and reform in the gulf cooperation council. LSE Kuwait Programme.
   Google Scholar
• Iskandar-Datta, M. E., & Jia, Y. (2014). Investor protection and corporate cash holdings around the world: New evidence. Review of Quantitative Finance and Accounting, 43(2), 245–273. https://doi.org/10.1007/s11156-013-0371-y
   Google Scholar
• Jensen, M. C. (1986). Agency cost of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323–329. http://www.jstor.org/stable/1818789
   Web of Science ®Google Scholar
• Kalcheva, I., & Lins, K. V. (2007). International evidence on cash holdings and expected managerial agency problems. The Review of Financial Studies, 20(4), 1087–1112. https://doi.org/10.1093/rfs/hhm023
   Web of Science ®Google Scholar
• Kaya, A., & Tsai, I.-T. (2016). Inclusive economic institutions in the gulf cooperation council states: Current status and theoretical implications. Review of Middle East Economics and Finance, 12(2), 139–173. https://doi.org/10.1515/rmeef-2015-0015
   Google Scholar
• Kusnadi, Y., Yang, Z., & Zhou, Y. (2015). Institutional development, state ownership, and corporate cash holdings: Evidence from China. Journal of Business Research, 68(2), 351–359. https://doi.org/10.1016/j.jbusres.2014.06.023
   Web of Science ®Google Scholar
• Martínez-García, I., Basco, R., & Gómez-Ansón, S. (2021). Dancing with giants: Contextualizing state and family ownership effects on firm performance in the gulf cooperation council. Journal of Family Business Strategy, 12(4), 100373. https://doi.org/10.1016/j.jfbs.2020.100373
   Web of Science ®Google Scholar
• Martínez-Sola, C., García-Teruel, P. J., & Martínez-Solano, P. (2018). Cash holdings in SMEs: Speed of adjustment, growth and financing. Small Business Economics, 51(4), 823–842. https://doi.org/10.1007/s11187-018-9990-y
   Web of Science ®Google Scholar
• Megginson, W. L., Ullah, B., & Wei, Z. (2014). State ownership, soft-budget constraints, and cash holdings: Evidence from China’s privatized firms. Journal of Banking & Finance, 48(November), 276–291. https://doi.org/10.1016/j.jbankfin.2014.06.011
   Google Scholar
• Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84
   Web of Science ®Google Scholar
• Opler, T., Pinkowitz, L., Stulz, R., & Williamson, R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3–46. https://doi.org/10.1016/S0304-405X(99
   Web of Science ®Google Scholar
• Ozkan, A., & Ozkan, N. (2004). Corporate cash holdings: An empirical investigation of UK companies. Journal of Banking & Finance, 28(9), 2103–2134. https://doi.org/10.1016/j.jbankfin.2003.08.003
   Web of Science ®Google Scholar
• Ozkan, S., Yaacoub, C., El-Kanj, N., & Dzenopoljac, V. (2019). The effect of IFRS adoption on corporate cash holdings: Evidence from MENA Countries. Emerging Markets Finance and Trade, 57(11), 1–26. https://doi.org/10.1080/1540496X.2019.1693361
   Web of Science ®Google Scholar
• Phan, H. V., Nguyen, N. H., Nguyen, H. T., & Hegde, S. (2019). Policy uncertainty and firm cash holdings. Journal of Business Research, 95, 71–82. https://doi.org/10.1016/j.jbusres.2018.10.001
   Web of Science ®Google Scholar
• Potì, V., Pattitoni, P., & Petracci, B. (2020). Precautionary motives for private firms’ cash holdings. International Review of Economics & Finance, 68(July), 150–166. https://doi.org/10.1016/j.iref.2020.03.003
   Google Scholar
• Santos, A. (2015). Integrated ownership and control in the GCC corporate sector. International Monetary Fund.
   Google Scholar
• Seifert, B., & Gonenc, H. (2018). The effects of country and firm-level governance on cash management. Journal of International Financial Markets, Institutions and Money, 52(January), 1–16. https://doi.org/10.1016/j.intfin.2017.12.001
   Google Scholar
• Seo, D. W., & Han, S. H. (2021). Corruption and corporate cash holdings. Emerging Markets Finance and Trade, 58(5), 1–15. https://doi.org/10.1080/1540496X.2021.1890022
   Web of Science ®Google Scholar
• Shikimi, M. (2019). Bank relationships and corporate cash holdings. Pacific-Basin Finance Journal, 57(October), 101185. https://doi.org/10.1016/j.pacfin.2019.101185
   Google Scholar
• Smith, J. D. (2016). US political corruption and firm financial policies. Journal of Financial Economics, 121(2), 350–367. https://doi.org/10.1016/j.jfineco.2015.08.021
   Web of Science ®Google Scholar
• Sufi, A. (2009). Bank lines of credit in corporate finance: An empirical analysis. The Review of Financial Studies, 22(3), 1057–1088. https://doi.org/10.1093/revfin/hhm007
   Web of Science ®Google Scholar
• Svensson, J. (2003). Who must pay bribes and how much? Evidence from a cross section of firms. The Quarterly Journal of Economics, 118(1), 207–230. https://doi.org/10.1162/00335530360535180
   Web of Science ®Google Scholar
• Tayeh, M., Bino, A., Ghunmi, D. A., & Tayem, G. (2015). Liquidity commonality in an emerging market: Evidence from Amman stock exchange. International Journal of Economics and Finance, 7(2), 203–213. https://doi.org/10.5539/ijef.v7n2p203
   Google Scholar
• Tayem, G. (2017). To bank or not to bank: The determination of cash holdings and lines of credit. Economic Research Forum.
   Google Scholar
• Tayem, G. (2022). Loan portfolio structure: The impact of foreign and Islamic banks. EuroMed Journal of Business, Advance Online Publication. https://doi.org/10.1108/EMJB-11-2021-0170
   Web of Science ®Google Scholar
• Tayem, G., Tayeh, M., & Spetan, K. A. (2019). Corporate cash holdings and ownership structure: A quantile regression analysis. Jordan Journal of Economic Sciences, 6(1), 65–80.
   Google Scholar
• Thakur, B. P. S., & Kannadhasan, M. (2019). Corruption and cash holdings: Evidence from emerging market economies. Emerging Markets Review, 38(March), 1–17. https://doi.org/10.1016/j.ememar.2018.11.008
   Google Scholar
• Tran, Q. T. (2020). Corruption and corporate cash holdings: International evidence. Journal of Multinational Financial Management, 54(March), 100611. https://doi.org/10.1016/j.mulfin.2019.100611
   Google Scholar
• Uyar, A., & Kuzey, C. (2014). Determinants of corporate cash holdings: Evidence from the emerging market of Turkey. Applied Economics, 46(9), 1035–1048. https://doi.org/10.1080/00036846.2013.866203
   Web of Science ®Google Scholar
• Xu, X., & Li, Y. (2018). Local corruption and corporate cash holdings: Sheltering assets or agency conflict? China Journal of Accounting Research, 11(4), 307–324. https://doi.org/10.1016/j.cjar.2018.05.001
   Web of Science ®Google Scholar