CORPORATE GOVERNACE, FIRM VALUE AND CASH HOLDINGS IN NIGERIA

ABSTRACT

This study investigate the relationship between cash holding and firm value and the degree to which corporate governance influence the relationship between cash holding and firm value. The research design adopted for this study is a combination of a cross-sectional and longitudinal research design covering a time period of five years, that is from 2016 to 2020 ( five financial years). The study employs the secondary sources of data collection. The data were obtained from the published annual financial report and accounts of companies listed on Nigerian Stock Exchange (NSE) for all the variables required).The population of the study comprises the total of one hundred and six four (164) listed firms on the Nigerian Stock Exchange (NSE) as at 31st December, 2020 (Nigerian Stock Exchange Fact book, 2020). The study employs the secondary sources of data collection. The data were obtained from the published annual financial report and accounts of companies listed on Nigerian Stock Exchange (NSE) for all the variables required. The simple model in this study is a linear model in which firm value is peroxide by Tobins Q and cash holding and Corporate Governance indicated by Board Size, Board Independence, CEO Ownership and Institutional Ownership. From the results of the study only the board independence has a strong effect on firm value. On the basis of the findings, Firm value is measured by Tobins Q. The study employed 480 firm-years observation over five period of 2016-2020. The study therefore, recommends that regulatory agencies must seek to consolidate board independence to ensure that the board act as independently as possible from the actions Chief Executive Officer.