Panel A. Sample composition and means of cash and governance
	Bahrain	Bangladesh	China	Hong-Kong	India	Indonesia	Iraq	Jordan	Kazakhstan
CASH	%18.1	%11.2	%19.9	%23.6	%7.5	%12.1	%23.8	%10.1	%8.9
GOV	%52.5	%21.6	%36.4	%86.9	%43.9	%35	%8.8	%50	%33.7
	Kuwait	Lebanon	Malaysia	Oman	Pakistan	Philippines	Qatar	Russia	S. Arabia
CASH	%16.4	%9.4	%14.6	%11.7	%8.7	%14.9	%16.4	%9.8	%10.5
GOV	%53.2	%30.3	%61	%58.8	%21.1	%40.9	%67.1	%27	%43.6
	Singapore	S. Korea	Sri Lanka	Syria	Taiwan	Thailand	Turkey	Vietnam	WHOLE
CASH	%19.9	%16.6	%8.8	%10.9	%22	%11.4	%9.7	%12.9	%16.2
GOV	%87.6	%72.8	%43.1	%10.5	%78.3	%47.6	%48.1	%36.5	%57.1
Panel B. Descriptive statistics
	CASH	GOV	DIV	SIZE	MBR	INV	LEV	NWC	CFA	R&D
Mean	0.162	57.093	0.054	15.059	0.606	0.005	0.239	0.024	0.010	0.336
Median	0.111	50.512	0.031	14.648	0.506	0.000	0.208	0.029	0.019	0.000
SD	0.162	20.529	0.069	2.799	0.847	0.027	0.208	0.214	0.152	0.472
Min	0.000	1.849	0.000	4.762	0.088	0.000	0.000	-0.649	-0.823	0.000
Max	0.940	90.101	0.897	26.427	20.876	0.477	1.000	0.863	0.933	1.000
Panel C. Correlation matrix
	CASH	GOV	DIV	SIZE	MBR	INV	LEV	NWC	CFA	VIF
GOV	0.191^a									1.12
DIV	-0.079^a	-0.073^a								1.03
SIZE	-0.102^a	-0.049^a	0.051^a							1.14
MBR	-0.118^a	-0.104^a	-0.005^a	-0.074^a						1.25
INV	-0.058^a	-0.107^a	-0.049^a	-0.060^a	0.255^a					1.42
LEV	-0.400^a	-0.120^a	0.063^a	0.149^a	0.306^a	0.004^a				1.09
NWC	-0.014^a	0.038^a	-0.069^a	-0.111^a	-0.261^a	-0.002^a	-0.423^a			1.31
CFA	0.155^a	-0.104^a	0.091^a	0.076^a	-0.172^a	0.022^a	-0.316^a	0.284^a		1.22
RDD	0.141^a	0.231^a	0.007^a	0.229^a	-0.096^a	-0.069^a	-0.095^a	0.076^a	0.021^a	1.15