Board diversity and the marginal value of corporate cash holdings

Hanping Yang and Kunkun Xue

Pacific-Basin Finance Journal, 2023, vol. 79, issue C

Abstract: Using the Blau index, this study measures board diversity and uses data on A-share companies listed in Shanghai and Shenzhen between 2011 and 2020 to investigate how board diversity affects the marginal value of corporate cash holdings. We find that greater board diversity indicates a greater marginal value of corporate cash holdings. Board independence, property rights, and environmental dynamism moderate the relationship between board diversity and the marginal value of corporate cash holdings. Further mechanism analysis shows that high-diversity boards improve the marginal value of corporate cash holdings by alleviating agency problems and increasing firms' resources. This study provides new ideas and evidence for discussing how macro- and micro-factors affect corporate governance. Furthermore, the results provide a reference for accounting information users to analyze corporate value and make reasonable investment decisions.

Keywords: Board diversity; Marginal value; Corporate cash holdings; Board independence; Property rights; Environmental dynamism (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X23001142
Full text for ScienceDirect subscribers only

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:eee:pacfin:v:79:y:2023:i:c:s0927538x23001142

DOI: 10.1016/j.pacfin.2023.102048

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
Bibliographic data for series maintained by Catherine Liu ().