Not size but attributes: the relationship between board attributes and cash holdings
Year: 2025
Type: article
Abstract: This study examines the attributes of board members and the role of board size as a governance factor in determining corporate cash holdings. Our findings indicate that the age and tenure of board members jointly have a positive impact on firms’ cash holdings, while tenure exhibit a quadratic relationship with cash holdings. Additionally, we identify that the educational background of board members significantly affects firms’ cash holdings. Notably, our research demonstrates that when board member attributes are considered, the influence of board size as a governance factor becomes insignificant. This study challenges the conventional emphasis on board size as a governance proxy and suggests that board member attributes offer a more robust framework for understanding corporate governance’s impact on a firm’s cash holdings. The findings of this research emphasize the importance of incorporating board member attributes into financial decision-making. Additionally, the results suggest that future research should focus on the specific attributes of board members rather than using board size, measured by the number of members, as a proxy for corporate governance.
Source: Cogent Business & Management
Institution: Chiang Mai University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,165
Funder: Chiang Mai University
OpenAlex ID: W4410785652