Impact of characteristics of the board chairman on cash holdings: empirical evidence from GCC

Hamada Elsaid Elmaasrawy, Omar Ikbal Tawfik and Khaled Hussainey

Review of Accounting and Finance, 2025, vol. 24, issue 5, 767-787

Abstract: PurposeThis paper aims to examine the impact of the characteristics of the board chairman (BC) on cash holdings (CHs).Design/methodology/approachOrdinary least squares and two-stage least squares–based methods were used on historical data from 167 firms listed on Gulf Cooperation Council Exchange Markets from the year 2012 to 2019.FindingsChairman ownership (CHOW) and the chairman and chief executive officer (CEO) from the same family (CHCESF) have a negative impact on CH, while chairman from royal families (CHRF) positively affects CH.Research limitations/implicationsThis study was limited to only three characteristics of the BC. Additionally, this study only used linear regression.Practical implicationsStakeholders show the impact of the characteristics of the BC on CH as a tool for risk management and financing investment opportunities. Simultaneously, the results help capital market authorities by outlining the importance of reconsidering the governance regulations regarding the different characteristics and roles of the BC.Originality/valueThis study pioneeringly clarifies the impact of three characteristics of the board’s chairman (CHOW, CHCESF and CHRF) on CH.

Keywords: Cash holdings; Chairman ownership; Family ownership; Chairman from royal families; chairman; CEO from the same family (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/raf/article/24/5/767/12992 ... he-board-chairman-on (text/html)
https://www.emerald.com/raf/article-pdf/24/5/767/10297528/raf-01-2024-0030en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rafpps:raf-01-2024-0030

DOI: 10.1108/RAF-01-2024-0030

Access Statistics for this article

Review of Accounting and Finance is currently edited by Nawazish Mirza

More articles in Review of Accounting and Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().