The Repository @ St. Cloud State

Open Access Knowledge and Scholarship

Date of Award


Culminating Project Type


Degree Name

Applied Economics: M.S.




School of Public Affairs

First Advisor

Eduardo Pablo

Second Advisor

Mana Komai-Molle

Third Advisor

Artatrana Ratha

Fourth Advisor

Huihua Li

Creative Commons License

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.