Culminating Project Title
Effects of Board Design and Managerial Ownership on the Level of Cash Holdings in Latin American Firms
Date of Award
Culminating Project Type
Applied Economics: M.S.
School of Public Affairs
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Keywords and Subject Headings
Cash holdings, Corporate governance, Agency issues, Board of directors
This paper analyzes the level of cash holdings and the role of corporate governance in monitoring the potential agency problem. This research studies the relationship between cash holdings, the Board of directors' design, and managerial ownership levels in Latin America's public traded companies in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. I find a positive and statistically significant effect of board size and institutional ownership on cash holdings. I also find a negative and significant correlation between board duality and cash holdings. The results show that board independence is positively and statistically significantly associated with cash holdings when controlling for firms' characteristics.
Qian, Pengyu, "Effects of Board Design and Managerial Ownership on the Level of Cash Holdings in Latin American Firms" (2021). Culminating Projects in Economics. 19.