• DOI:10.2139/SSRN.687464
Corpus ID: 15055471

Corporate governance and the value of cash holdings.

@article{Dittmar2007CorporateGA,
  title={Corporate governance and the value of cash holdings.},
  author={A. Dittmar and Jan Mahrt-Smith},
  journal={Journal of Financial Economics},
  year={2007},
  volume={83},
  pages={599-634}
}

A. Dittmar, Jan Mahrt-Smith

Published 2007

Business

Journal of Financial Economics

In this paper, we investigate how corporate governance impacts firm value by examining both the value and the use of cash holdings in poorly and well governed firms. Cash represents a large and growing fraction of corporate assets and generally is at the discretion of management. We use several measures of corporate governance and show that governance has a substantial impact on firm value through its impact on cash: $1.00 of cash in a poorly governed firm is valued by the market at only $0.42… CONTINUE READING

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