Navigating cash management: The role of board co-option

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2024-11-23 DOI:10.1016/j.pacfin.2024.102594

Wenqiong Liu, Ziqi Li, Ho-Chuan Huang

引用次数: 0

Abstract

This study examines the impact of board co-option on cash holdings in Chinese listed firms. The results show that co-opted directors significantly increase corporate cash reserves. This effect is particularly strong in state-owned enterprises (SOEs), where co-opted boards further amplify cash accumulation. However, financial constraints attenuate this relationship. Moreover, the increase in cash reserves associated with board co-option is partially driven by enhanced firm profitability, highlighting its mediating role. These findings offer new insights into the governance mechanisms influencing cash management in China.

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现金管理导航：董事会增选的作用

本研究探讨了董事会增选对中国上市公司现金持有量的影响。研究结果表明，增选董事大大增加了企业的现金储备。这种影响在国有企业中尤为明显，增选董事会进一步扩大了现金积累。然而，财务约束削弱了这种关系。此外，与董事会增选相关的现金储备的增加部分是由企业盈利能力的提高驱动的，这凸显了其中介作用。这些发现为了解影响中国现金管理的治理机制提供了新的视角。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.