 Female government officials and corporate cash holdingsTianqi Jiang, Yi Shen, Yali He and Zhao Wang Pacific-Basin Finance Journal, 2024, vol. 84, issue C Abstract: We examine the impact of the presence of female officials in the local government on cash holdings for firms in China. Compared to local governments without female officials, we find that those with female officials can reduce corporate cash holdings. The evidence shows that firms reduce cash holdings due to lower local policy uncertainty and level of corruption. Our results are robust to controlling for firm characteristics, using fixed effect regressions and alternative measures of cash holdings, and excluding centrally administrated cities. The relation between female government officials and corporate cash holdings is more pronounced for firms with higher managerial gender diversity and more investment opportunities. Further analysis indicates that female officials have a positive effect on the value of cash to shareholders. Overall, our results suggest that gender composition in local government officials has a non-negligible effect on corporate financial policies. Keywords: Corporate cash holdings; Female government officials; Value of cash; Leadership style; Economic policy uncertainty (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:84:y:2024:i:c:s0927538x24000258 DOI: 10.1016/j.pacfin.2024.102274 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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