Robustness to alternative sample compositions and model specification Sample Clauses

Robustness to alternative sample compositions and model specification. In Table 5, Panel C, we report results based on alternative sample compositions and model specification. In Column 1, we follow Xxxxx and Xxxxxxxxx (1999) and Xxxxxx (2005) and restrict our analysis to firms located outside the Paris region where 62.88% in our sample firms are headquartered (see Appendix 2). In Column 2, we check that our results are not due to the exclusion of firms with no controlling shareholder (i.e., widely held firms) by including firms in which the largest shareholder owns less than 10% of control rights and assigning a value 0 to the variable Excess Control Ratio. In Column 3, we test the effect of geographic location on distance in the sample of widely held firms. The positive effect of distance on cash holdings may not hold for these firms if increased cash in remote firms is driven by the presence of controlling shareholders. Results of Column 3 consistently show that cash holdings of firms with no controlling shareholder are not affected by their geographic location.