CORPORATE CASH HOLDINGS AND FIRM PERFORMANCE: THE ROLE OF FAMILY OWNERSHIP AND ANALYST COVERAGE IN THAI LISTED FIRMS

Abstract

This study examines the determinants and performance implications of corporate cash holdings among Thai SET-listed firms over 2017–2024. Using pooled OLS with industry and year fixed effects and firm-level clustered standard errors (N = 3,596; 510 firms), we test seven hypotheses across two models. For the determinants model, firm-specific characteristics (market-to-book ratio, leverage, cash flow, net working capital, and ROA) significantly drive cash holdings, while family ownership has no significant effect. Analyst coverage significantly reduces cash holdings, consistent with Chen, Harford, and Lin (2015). For the performance model, cash holdings are positively associated with Tobin's Q. No inverted U-shaped relationship is found. Family ownership does not reduce cash value in isolation but is strongly positive in the full model, indicating stewardship effects. Analyst coverage marginally enhances the marginal value of cash. The findings suggest that external monitoring complements ownership-based governance in an emerging market with concentrated family ownership