This study investigated the impact of firm different type of ownership structure on firm cash holdings while using sample data randomly collected for the 180 firms listed in KSE-All index for the time period of eight years ranging from 2003 to 2010. The analysis suggested that firms with higher institutional ownership have high amount of cash holdings. Firm managerial ownership has negatively related with the cash holdings. The more dispersed ownership structure of firm would lead the manager to keep more cash to be liquid enough and lower chance of bankruptcy. Higher the amount of block holders the lower will be the cash kept by the firm due to strong monitoring mechanism of the block holders. The foreign shareholders would preferred cash dividend as to capital gain therefore there is negative relationship between the cash holdings with foreign ownership and dividend payout.
Keywords: Cash holdings, managerial ownership, institutional ownership, foreign ownership