The Impact of Board Structure and Board Committee Attributes on Firm’s Cash Holdings: An Empirical Study from Pakistan

• 발행기관: 한국유통과학회
• 저자명: Muhammad IDREES Romana BANGASH Hanana KHAN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 9 No.3, 135~147쪽, 전체 13쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.03.30

영문 초록

This study was conducted to determine whether there is a significant relationship between board structure and board committee qualities and corporate cash holdings in Pakistan. For this objective, 168 listed enterprises on the PSX for the period 2016 to 2020 were chosen as a sample from a population of 436 non-financial firms. Multiple regression analysis was used in the study to discover a relationship between board structure and board committee features and cash holdings. The study’s findings revealed that board size, executive directors, and board independence have no significant impact on the firm’s cash holding because they play no important part in the firm’s cash holding. Auditors, audit committee size, audit committee meetings, and the compensation committee, on the other hand, have no major impact on the firm’s cash holdings because they are not relevant indicators to compare with cash holdings. While board meeting frequency and leadership structure both have a negative influence on cash holding, board meeting frequency increases firm costs, whereas leadership structure causes agency problems. Results were supported by the pecking order theory, cash flow theory, and agency theory.

목차

1. Introduction

2. Literature Review

3. Methodology

4. Results and Discussion

5. Conclusion and Limitations

References

키워드

Board Committee Agency Conflict Board Structure Pecking Order Theory Free Cash Flow Theory Multiple Regression