Investment Committees and Corporate Cash Holdings
We investigate the association between the voluntary formation of a board investment committee (IC) and corporate cash holdings for a large sample of Gulf Cooperation Council (GCC) firms over the 2005–2013 period. We provide evidence that the existence of a specialized IC increases corporate cash ho...
| Main Authors: | , , , , |
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| Format: | Journal Article |
| Language: | English |
| Published: |
ELSEVIER SCIENCE INC
2020
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/85096 |
| _version_ | 1848764715631640576 |
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| author | Al-Hadi, Al-Hadi Ahmed Eulaiwi, Baban Al-Yahyaee, Khamis Duong, Lien Taylor, Grantley |
| author_facet | Al-Hadi, Al-Hadi Ahmed Eulaiwi, Baban Al-Yahyaee, Khamis Duong, Lien Taylor, Grantley |
| author_sort | Al-Hadi, Al-Hadi Ahmed |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We investigate the association between the voluntary formation of a board investment committee (IC) and corporate cash holdings for a large sample of Gulf Cooperation Council (GCC) firms over the 2005–2013 period. We provide evidence that the existence of a specialized IC increases corporate cash holdings. We also find that several IC characteristics, i.e., member experience, independence, number of meetings, and committee size, are associated with an increase in firms’ cash holdings. Furthermore, the local and foreign institutional ownership of GCC firms moderates the IC-cash holdings relationship. These results remain robust to alternative specifications of cash holdings and endogeneity tests. We contribute to the literature on firms’ incentives to hold cash and to the literature on governance in emerging market contexts. |
| first_indexed | 2025-11-14T11:23:46Z |
| format | Journal Article |
| id | curtin-20.500.11937-85096 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:23:46Z |
| publishDate | 2020 |
| publisher | ELSEVIER SCIENCE INC |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-850962022-08-12T05:20:17Z Investment Committees and Corporate Cash Holdings Al-Hadi, Al-Hadi Ahmed Eulaiwi, Baban Al-Yahyaee, Khamis Duong, Lien Taylor, Grantley 1501 - Accounting, Auditing and Accountability We investigate the association between the voluntary formation of a board investment committee (IC) and corporate cash holdings for a large sample of Gulf Cooperation Council (GCC) firms over the 2005–2013 period. We provide evidence that the existence of a specialized IC increases corporate cash holdings. We also find that several IC characteristics, i.e., member experience, independence, number of meetings, and committee size, are associated with an increase in firms’ cash holdings. Furthermore, the local and foreign institutional ownership of GCC firms moderates the IC-cash holdings relationship. These results remain robust to alternative specifications of cash holdings and endogeneity tests. We contribute to the literature on firms’ incentives to hold cash and to the literature on governance in emerging market contexts. 2020 Journal Article http://hdl.handle.net/20.500.11937/85096 10.1016/j.najef.2020.101260 English http://creativecommons.org/licenses/by-nc-nd/4.0/ ELSEVIER SCIENCE INC fulltext |
| spellingShingle | 1501 - Accounting, Auditing and Accountability Al-Hadi, Al-Hadi Ahmed Eulaiwi, Baban Al-Yahyaee, Khamis Duong, Lien Taylor, Grantley Investment Committees and Corporate Cash Holdings |
| title | Investment Committees and Corporate Cash Holdings |
| title_full | Investment Committees and Corporate Cash Holdings |
| title_fullStr | Investment Committees and Corporate Cash Holdings |
| title_full_unstemmed | Investment Committees and Corporate Cash Holdings |
| title_short | Investment Committees and Corporate Cash Holdings |
| title_sort | investment committees and corporate cash holdings |
| topic | 1501 - Accounting, Auditing and Accountability |
| url | http://hdl.handle.net/20.500.11937/85096 |