الأثر التفاعلي للروابط السياسية وحوكمة الشركات على الاحتفاظ بالنقدية في الشركات غير المالية المدرجة في البورصة المصرية

Abstract EN

This study sought to investigate the direct effect of both political connections and corporate governance on cash holding, as well as, testing the interactive effect of them on cash holding.

The study relied on the multiple regression to test the study hypotheses, using data of 143 non-financial companies listed on the Egyptian Exchange for the period from 2010 to 2018.

The results showed a positive effect of political connections and a negative effect of corporate governance on the deviation from the optimal cash holding.

Moreover, the results showed an interactive effect of both political connections and corporate governance on the deviation from the optimal cash holding; that means the impact of political connections on the deviation from the optimal cash holding depends on the level of corporate governance.

The effect of political connections on deviations from the optimal cash holding of company with strong governance has decreased.

The study concluded with an attempt to explain these results in the light of financial literature and to provide a set of recommendations for policy-makers and those interested in the corporate sector.