Tosun, Onur Kemal ORCID: https://orcid.org/0000-0003-2551-1408, El Kalak, Izidin ORCID: https://orcid.org/0000-0002-2992-4042 and Hudson, Robert 2022. How female directors help firms to attain optimal cash holdings. International Review of Financial Analysis 80 , pp. 1-20. 10.1016/j.irfa.2022.102034 |
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Abstract
Is female board representation helpful for firms attaining optimal cash holdings? We address this question using data on 1163 US-listed firms for 2000‐–2017. We show that if there are more female directors on firm boards, ceteris paribus, there is no effect on excess cash holdings implying that female directors are not inclined to be particularly cautious or optimistic. However, in the presence of overly confident CEOs, having more female directors on the board counteracts the tendency of such CEOs to reduce cash holding below an optimal level. Thus, female board representation enhances corporate decision making through effective monitoring and thus, taming CEOs' biased behavior.
Item Type: | Article |
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Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) |
Publisher: | Elsevier |
ISSN: | 1057-5219 |
Date of First Compliant Deposit: | 8 February 2022 |
Date of Acceptance: | 9 January 2022 |
Last Modified: | 06 May 2023 02:29 |
URI: | https://orca.cardiff.ac.uk/id/eprint/147305 |
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