Does Board Gender Diversity Affect Corporate Cash Holdings?
Atif, M., Liu, B., and Huang, A. (2019). Does Board Gender Diversity Affect Corporate Cash Holdings? Journal of Business Finance and Accounting, Forthcoming
Posted: 12 Jan 2018 Last revised: 5 Jul 2019
This paper examines whether board gender diversity affects corporate cash holdings using S&P 1,500 index firms in the US for the period 2006–2015. We document a significantly negative relationship between board gender diversity and cash holdings. We also find a strong negative effect of female independent directors consistent with monitoring function. Moreover, in accordance with the critical mass theory, we find a negative effect of female directors’ presence and voice on cash holdings. Our findings are robust to alternative econometric specifications, alternative measures of cash holdings and corporate governance, difference-in-differences, propensity score matching, and two-stage least squares. This study offers useful insights to the current global debate on gender diversity and its implications for firms.
Keywords: corporate governance, cash holdings, gender diversity
JEL Classification: G30, G34, J16
Suggested Citation: Suggested Citation