The Effect of Institutional Ownership on Corporate Cash Holdings: Evidence from Egypt

Basiouny, Meral Medhat; Saad Eldeen, Eman Mohamed; Tammam, Aliaa Abdallah

doi:10.21608/aljalexu.2023.310293

The Effect of Institutional Ownership on Corporate Cash Holdings: Evidence from Egypt

Document Type : Original Article

Authors

¹ Master of Science Student, Faculty of Management and Technology, Arab Academy for Science, Technology, and Maritime Transport

² Professor of Financial Accounting, Faculty of Commerce, Beni-Suef University

³ Lecturer of Accounting, Faculty of Management and Technology, Arab Academy for Science, Technology, and Maritime Transport

10.21608/aljalexu.2023.310293

Abstract

This research aims to investigate the impact of institutional ownership on corporate cash holdings in the Egyptian context. The research uses data from a sample of 46 listed companies on the Egyptian Stock Exchange, especially (EGX 50) from 12 main sectors (real estate, food and beverage, construction material, chemicals, tourism, basic resources, personal and household, health care, media, oil and gas, travel, and capital goods) for eight years’ period from 2014 to 2021. The study uses a panel linear regression model to test the research hypothesis. The findings revealed that institutional ownership seemed to have a significant positive influence on corporate cash holdings. In other words, firms with greater institutional investors are likely to hold more cash.

Keywords