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The Impact of Boards of Directors’ Characteristics on Cash Holdings

Received: 27 January 2022     Accepted: 15 February 2022     Published: 29 March 2022
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Abstract

This study examined the influence of corporate governance on company cash holding by explaining the relationship between board size, board independence, board gender and cash holding using a sample of 87 non-financial companies including industrial and service companies that listed on the Amman Stock Exchange from 2018 to 2020. By using random-effect generalized least square (GLS) regression model. The findings indicate that board size negatively influences cash holdings, while board gender has a positive association with cash holdings. Further, board independence did not have a direct effect on cash holdings in Jordan. This research contributes to the development of improved corporate governance policies that can help improve firm cash holdings. This study encourages Jordanian companies to use women who can give better monitoring services while also benefiting from their experiences. The results, which are robust to a range of alternative proxies and to additional tests, provide new insights into the determinants of level cash holdings.

Published in International Journal of Finance and Banking Research (Volume 8, Issue 2)
DOI 10.11648/j.ijfbr.20220802.11
Page(s) 57-61
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Cash Holdings, Board Size, Board Independence, Board Gender, Jordan Stock Market

References
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Cite This Article
  • APA Style

    Ayed Ahmad Khalifah Aizyadat. (2022). The Impact of Boards of Directors’ Characteristics on Cash Holdings. International Journal of Finance and Banking Research, 8(2), 57-61. https://doi.org/10.11648/j.ijfbr.20220802.11

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    ACS Style

    Ayed Ahmad Khalifah Aizyadat. The Impact of Boards of Directors’ Characteristics on Cash Holdings. Int. J. Finance Bank. Res. 2022, 8(2), 57-61. doi: 10.11648/j.ijfbr.20220802.11

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    AMA Style

    Ayed Ahmad Khalifah Aizyadat. The Impact of Boards of Directors’ Characteristics on Cash Holdings. Int J Finance Bank Res. 2022;8(2):57-61. doi: 10.11648/j.ijfbr.20220802.11

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  • @article{10.11648/j.ijfbr.20220802.11,
      author = {Ayed Ahmad Khalifah Aizyadat},
      title = {The Impact of Boards of Directors’ Characteristics on Cash Holdings},
      journal = {International Journal of Finance and Banking Research},
      volume = {8},
      number = {2},
      pages = {57-61},
      doi = {10.11648/j.ijfbr.20220802.11},
      url = {https://doi.org/10.11648/j.ijfbr.20220802.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20220802.11},
      abstract = {This study examined the influence of corporate governance on company cash holding by explaining the relationship between board size, board independence, board gender and cash holding using a sample of 87 non-financial companies including industrial and service companies that listed on the Amman Stock Exchange from 2018 to 2020. By using random-effect generalized least square (GLS) regression model. The findings indicate that board size negatively influences cash holdings, while board gender has a positive association with cash holdings. Further, board independence did not have a direct effect on cash holdings in Jordan. This research contributes to the development of improved corporate governance policies that can help improve firm cash holdings. This study encourages Jordanian companies to use women who can give better monitoring services while also benefiting from their experiences. The results, which are robust to a range of alternative proxies and to additional tests, provide new insights into the determinants of level cash holdings.},
     year = {2022}
    }
    

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    AB  - This study examined the influence of corporate governance on company cash holding by explaining the relationship between board size, board independence, board gender and cash holding using a sample of 87 non-financial companies including industrial and service companies that listed on the Amman Stock Exchange from 2018 to 2020. By using random-effect generalized least square (GLS) regression model. The findings indicate that board size negatively influences cash holdings, while board gender has a positive association with cash holdings. Further, board independence did not have a direct effect on cash holdings in Jordan. This research contributes to the development of improved corporate governance policies that can help improve firm cash holdings. This study encourages Jordanian companies to use women who can give better monitoring services while also benefiting from their experiences. The results, which are robust to a range of alternative proxies and to additional tests, provide new insights into the determinants of level cash holdings.
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Author Information
  • Department of Finance & Banking Science, Irbid National University, Irbid, Jordan

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