What is it about?
this paper aims to explore the relationship between cash holdings, political connections, and earnings quality in Malaysia where political influence plays a vital role in many aspects of business dealings and resources allocation is seriously affected by politics.
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Why is it important?
Malaysia is a country where political influence plays a vital role in many aspects of business dealings and resources allocation is seriously affected by politics. It also has weak corporate governance mechanisms and poor earnings quality.
Perspectives
At the international level, a recent study finds firms with political connections to hold more cash reserves (Boubakri et al., 2013). We extend the study by embarking on a hitherto unexplored area, that is, whether PCFs with high cash holdings are likely to disclose low quality earnings.
Dr redhwan ahmed al-dhamari
Universiti Utara Malaysia
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This page is a summary of: Cash holdings, political connections, and earnings quality, International Journal of Managerial Finance, April 2015, Emerald,
DOI: 10.1108/ijmf-02-2014-0016.
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