Abstract:
Purpose: The main goal of this research is to determine impact of corporate governance on cash
holding. The variables of the study include board size, firm's value, ownership structure, cash flow
variables, debt to asset ratio, networking capital, size of the firm and capital expenditure. The
dependent variable of the study is cash holding.
Methodology & Design: the data was collected from non- financial sector of Pakistan. Twenty-five
firms have been included and they are from various sectors. SBP data for non-financial companies
along with official website/financial statements of companies was taken to collect data of study
variables. Ordinary least square method (Regression) is used to empirically test the model.
Findings: it was found that ownership structure, board size, cash flow were found to be
significantly related with cash holding.
Limitations: the limitation that was there while research was time constraint limitation and the in
inviolability of majority of data. The sample size if increased could have result in a better research.
The major limitation was time constraint and excess to data. More improved results can be
obtained by increasing sample size for an extended time period.
