The Relationship between Board Characteristics and Cash Holdings under Different Business Life Cycle of Thai Listed Companies
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Published:
Aug 22, 2019
Keywords:
Board Characteristics Business Life Cycle Corporate Cash Holdings
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Abstract
This study aimed to investigate the relationship between board characteristics and cash holdings under different business life cycle of Thai Listed Companies during 2012 - 2016, totaling 1,698 observations, by using fixed effects model analyses. The findings revealed that the combination of CEO and chairman roles measured by dummy variable, 1 if the CEO is also the chair of the board and 0 otherwise, and the number of board meeting were positively related to corporate cash holdings. Furthermore, firm size, leverage, liquidity and capital expenditure had the significant effect on corporate cash holdings. The result also showed that there was no significant moderating effect of business life cycle to the relationship between board characteristics and corporate cash holdings.
Article Details
How to Cite
[Puriwat Owkusumsirisakul] ภ. โ., [Wisuttorn Jitaree] ว. จ., & [Chaiwuth Tangsomchai] ช. ต. (2019). The Relationship between Board Characteristics and Cash Holdings under Different Business Life Cycle of Thai Listed Companies. Journal of Business, Innovation and Sustainability (JBIS), 14(2), 94–108. retrieved from https://so02.tci-thaijo.org/index.php/BECJournal/article/view/141336
Section
บทความวิจัย (Research article)
References
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2. Dickinson, V. (2011). Cash flow patterns as a proxy for firm life cycle. The Accounting Review, 86(6), 1969-1994.
3. Drobetz, W., Halling, M. and Schroder, H. (2015). Corporate life-cycle dynamics of cash holdings. Retrieved June 12, 2017, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2578315
4. Eamsherangkoon, S. (2008). Corporate cash holdings, earnings management and corporate governance: Evidence from Thailand. Master thesis, M.S., Chulalongkorn University, Bangkok.
5. Gill, A. and Shah, C. (2012). Determinants of corporate cash holdings: Evidence from Canada. International Journal of Economics and Finance, 4(1), 70-79.
6. Gujarati, D. N. (2004). Basic Econometrics, (4th ed.). NewYork: Te McGraw-Hill Companies.
7. Harford, J., Mansi, S. A. and Maxwell, W. F. (2008). Corporate governance and firm cash holdings in the US. Journal of Financial Economics, 87(3), 535-555.
8. Hsu, W. Y., Huang, Y. and Lai, G. (2015). Corporate governance and cash holdings: Evidence from the US property–liability insurance industry. Journal of Risk and Insurance, 82(3), 715-748.
9. Keynes, J. M. (1936). The general theory of employment, interest and money. London: McMillan.
10 .Khan, A., Bibi, M. and Tanveer, S. (2016). The impact of corporate governance on cash holdings: A comparative study of the manufacturing and service industry. Financial Studies, 20(3), 40-79.
11. Kuan, T. H., Li, C. S. and Liu, C. C. (2012). Corporate governance and cash holdings: A quantile regression approach. International Review of Economics and Finance, 20(4), 303-314.
12. Lee, K. W. and Lee, C. F. (2009). Cash holdings, corporate governance structure and firm valuation. Review of Pacific Basin Financial Markets and Policies, 12(03), 475-508.
13. Limsakul, N. (2015). The relationship between structure of shareholders and cash holding of registered companies in the Stock Exchange of Thailand. Master thesis, M.B.A., Burapha University, Chon Buri.
14. Liu, Q., Luo, T. and Tian, G. G. (2015). Family control and corporate cash holdings: Evidence from China. Journal of Corporate Finance, 21(2), 220-245.
15. Luo, Q. and Hachiya, T. (2005). Corporate governance, cash holdings, and firm value: Evidence from Japan. Review of Pacific Basin Financial Markets and Policies, 8(04), 613-636.
16. Masood, A. and Shah, A. (2014). Corporate governance and cash holdings in listed non-financial firms of Pakistan. Business Review, 9(2), 48-73.
17. Opler, T., Pinkowitz, L., Stulz, R. and Williamson, R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3-46.
18. Sheikh, N. A. and Khan, M. I. (2015). The impact of board attributes and insider ownership on corporate cash holdings: Evidence from Pakistan. Pakistan Journal of Commerce and Social Sciences, 9(1), 52-68.
19. Steyn-Bruwer, B. W. and Hamman, W. D. (2005). Cash flow patterns in listed South African industrial companies. Meditari Accountancy Research, 13(1), 1-17.
20. Utaipattanasak, R. (2016). Relationship between cash holdings and firm value: Evidence from the Stock Exchange of Thailand. Independent study, M.S., Thammasat University, Bangkok.