Direct and Mediated Associations Among Ownership Structure, Cash Holdings and Firm Value: The Case of Jordanian Insurance Firms

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Abstract
This study aims to investigate the direct and mediated associations among ownership structure (OS), cash holdings (CHs) and firm value (FV). It provides empirical evidence from insurance firms listed in Jordan over the period from 2009 to 2018 using panel data analysis method. The findings conclude that ownership concentration positively affects CHs, whilst the board of directors’ ownership, organizational ownership and foreign ownership do not. Additionally, the CHs negatively affect FV. At the same time, the board of directors’ ownership, organizational ownership and foreign ownership as proxies for OS directly affect FV, and these proxies also have an indirect effect on FV by the mediation of CHs. Finally, this study recommends future research to study more determinants of FV, especially in different countries, such as MENA countries.

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