Abstract
This study investigates the impact of board characteristics on the relationship between political connections and cash holdings in Asian countries. The findings suggest that Asian firms with political connections, large boards, and gender diversity have lower cash holdings, while firms with CEO duality have higher cash holdings. Further, the study provides unique evidence that Asian firms with large boards and gender diversity have a moderating effect and strengthen the negative influence of political connections on cash holdings. We also find that CEO duality moderates the influence of political connections on cash holdings in Asian countries. The authors conclude that strong board monitoring and governance mechanisms are crucial for the effective use of cash, particularly in firms with political connections. This research contributes to the literature by presenting novel evidence that board characteristics critically influence the relationship between political connections and cash holdings in the Asian context.
| Original language | English |
|---|---|
| Pages (from-to) | 624-641 |
| Number of pages | 18 |
| Journal | International Journal of Disclosure and Governance |
| Volume | 21 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 21 Dec 2023 |
Bibliographical note
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.Keywords
- Board gender diversity
- Board size
- Cash holdings
- CEO duality
- Political connections
ASJC Scopus subject areas
- Business and International Management
- Accounting
- Finance
- Economics and Econometrics
- Strategy and Management