Corporate cash holding and firm value in Saudi listed non-financial firms: The moderating role of financial expertise of the audit committee
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Received December 18, 2024;Accepted May 15, 2025;Published May 28, 2025
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Author(s)Abdulwahid Ahmed Hashed AbdullahLink to ORCID Index: https://orcid.org/0000-0002-6791-235X
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DOIhttp://dx.doi.org/10.21511/imfi.22(2).2025.25
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Article InfoVolume 22 2025, Issue #2, pp. 313-322
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The current study examines the association between Corporate Cash Holdings and Firm Value and explores whether the interaction effect of Cash Holdings and financial expertise supports fair value. The study used data on 175 non-financial firms from 2015 to 2023 and employed pooled OLS regression. The fair value variable denoted by Tobin’s Q shows an average (median) of 3.01, while the mean (median) of cash holdings and Audit Committee financial expertise was 18% (13%) and 45% (33%). This study finds a positive coefficient of 0.63, which is significant at less than a 1 percent level, revealing that cash holding increases the value of companies, promoting transaction and precautionary incentives for maintaining cash reserves. Interestingly, the study also finds the positive influence of cash holdings on fair value, which is enhanced by the financial expertise of the audit committee (positive coefficient of 0.04, significant at less than a 1 percent significance level). Moreover, the interaction of cash holdings with audit committee financial expertise found a positive coefficient of 1.84, which is significant at less than a 1 percent significance level. This study presents the importance of the Audit Committee mechanism, particularly with the presence of financial and accounting expertise, in supporting the market value of a company. The outcomes of this study benefit policymakers, managers, and investors regarding effective corporate liquidity management and its effect on fair value.
Acknowledgment
The author acknowledges that the current project under research project number PSAU/2023/02/25900 was funded by Prince Sattam Bin Abdulaziz University.
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JEL Classification (Paper profile tab)L32, M41, M42
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References32
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Tables5
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Figures0
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- Table 1. Measures of variables
- Table 2. Descriptive statistics
- Table 3. Correlation matrix analysis
- Table 4. Regression results for the relation of corporate holdings with fair value (Model 1)
- Table 5. Regression results for Model 2 interaction effect of ACFX with CASH
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Conceptualization
Abdulwahid Ahmed Hashed Abdullah
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Data curation
Abdulwahid Ahmed Hashed Abdullah
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Formal Analysis
Abdulwahid Ahmed Hashed Abdullah
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Investigation
Abdulwahid Ahmed Hashed Abdullah
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Methodology
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Project administration
Abdulwahid Ahmed Hashed Abdullah
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Resources
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Supervision
Abdulwahid Ahmed Hashed Abdullah
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Validation
Abdulwahid Ahmed Hashed Abdullah
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Visualization
Abdulwahid Ahmed Hashed Abdullah
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Writing – original draft
Abdulwahid Ahmed Hashed Abdullah
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Writing – review & editing
Abdulwahid Ahmed Hashed Abdullah
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Conceptualization
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The impact of organizational culture on job performance: a study of Saudi Arabian public sector work culture
Problems and Perspectives in Management Volume 16, 2018 Issue #3 pp. 207-218 Views: 6800 Downloads: 1958 TO CITE АНОТАЦІЯThis research aims to assess direct and indirect influences of organizational culture on job performance, as well as to evaluate the impact of each sub-element of organizational culture on such performance. It is argued that employees performance derives, on the one hand, from a long-term perspective related to changes that organizations manage and implement during their process of growth. A second dimension of organizational culture can be given through organizational values, routines and distinctive aspects of culture that allow organizations to create solid competitive advantages. Since most studies in this field were held in Western work cultures, this paper will be devoted to the analysis of this relationship within an Arabic cultural environment and more specifically within a Saudi context. A quantitative study tool, based on a comprehensive research questionnaire, was used and the sample was selected from various government departments being operative in Alkharj. The findings indicate a positive relationship between organizational culture and job performance. Likewise, four organizational culture sub-elements, namely Managing Change, Achieving Goals, Coordinating Teamwork and Cultural Strength, were found affecting positively on job performance, but with varying and distinct intensity. Only Customer Orientation was found negatively associated with job performance.
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Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 232-247 Views: 5668 Downloads: 1080 TO CITE АНОТАЦІЯFinancial performance is the fundamental aspect to test the performance of the companies. The performance of insurance sector, like any other service industry, is supposed to depend significantly on customers. When it comes to customers, it is an established fact that customer satisfaction would be an important element. Customer satisfaction primarily depends on the quality of service it gets. It can be safely hypothesized that better service quality would lead to higher satisfaction, which would ultimately lead to higher profits for the company. Studies on this relationship in the insurance sector for Saudi Arabia are missing. Hence, this study aims at studying both the profitability of companies and quality of service and tries to relate it to customer satisfaction. The results are quite surprising, as the study establishes that although the qualities of services are found wanting in many areas, companies are earning good profits. A probable reason could be the statutory nature of the services. Nevertheless, this study recommends improving the quality of services and differentiating services between age groups for further improvement.
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The role of digital marketing tools in promoting tourism: An applied study on online marketing strategies
Innovative Marketing Volume 21, 2025 Issue #2 pp. 14-26 Views: 4506 Downloads: 1690 TO CITE АНОТАЦІЯDigital marketing has become a central driver in tourism promotion, reshaping how destinations engage with potential visitors. This study investigates the impact of digital marketing strategies ‒ social media marketing, electronic word-of-mouth (e-WOM), and online advertising ‒ on brand awareness and tourists’ intention to visit destinations in Saudi Arabia’s Asir region. The study utilized a sample size of 400 participants, with a 70% response rate, resulting in 280 completed surveys. The sample represented a diverse demographic, with 57.1% male, 42.9% female, 89.3% Saudi nationals, and 96.4% domestic tourists. Data were collected from tourists visiting key attractions such as the Al-Soudah Mountains and Abha, either in person or via digital channels. The survey assessed the effectiveness of digital marketing tools and their influence on brand awareness, intention to visit, and tourist satisfaction.
The results analyzed using descriptive statistics, correlation analysis, and multiple regression, revealed that all three digital marketing strategies significantly influenced both brand awareness and the intention to visit. Social media marketing showed the strongest impact (β = 0.31**, p < 0.01), followed by online advertising (β = 0.30**, p < 0.01) and e-WOM (β = 0.25**, p < 0.01). These findings highlight the effectiveness of digital marketing in shaping tourist behavior and decision-making, with significant implications for tourism marketing in emerging destinations like Asir.Acknowledgment
The authors are thankful to the Deanship of Graduate Studies and Scientific Research at University of Bisha for supporting this work through the Fast-Track Research Support Program.

