The interplay of judicial efficiency and ownership structure: implications for cash holdings in pyramidal firms in emerging economies

Key Points

• Cash holdings are significantly influenced by judicial efficiency in emerging economies, highlighting the importance of legal frameworks.
• Pyramidal ownership structures lead to different cash holding behaviors, with implications for firm resource management.
• The analysis employs comparative metrics across various firms to assess the link between ownership and cash management.
• These findings suggest a need for legal reforms to enhance corporate governance and optimize cash resources.