Abstract
Purpose – This paper examines impact of the characteristics of the board chairman on cash holdings(CH).
Design/methodology/approach – Ordinary least squares and 2SLS based were used on historical data from 167 firms listed on Gulf Cooperation Council (GCC) Exchange Markets from the year 2012 to 2019.
Findings – Chairman ownership (CHOW) and the chairman and CEO from the same family (CHCESF) have a negative impact on CH, while Chairman from royal families (CHRF) positively affect CH.
Research limitations/implications– This study was limited to only three characteristics of the board Chairman. Additionally, this study only used linear regression.
Practical implications – Stakeholders show the impact of the characteristics of the board Chairman on CH as a tool for risk management and financing investment opportunities. Simultaneously, our results help capital market authorities by outlining the importance of reconsidering the governance regulations regarding the different characteristics and roles of the board Chairman.
Originality/Value - This study pioneeringly clarifies the impact of three characteristics of the board’s Chairman (CHOW, CHCESF, and CHRF) on CH.
Design/methodology/approach – Ordinary least squares and 2SLS based were used on historical data from 167 firms listed on Gulf Cooperation Council (GCC) Exchange Markets from the year 2012 to 2019.
Findings – Chairman ownership (CHOW) and the chairman and CEO from the same family (CHCESF) have a negative impact on CH, while Chairman from royal families (CHRF) positively affect CH.
Research limitations/implications– This study was limited to only three characteristics of the board Chairman. Additionally, this study only used linear regression.
Practical implications – Stakeholders show the impact of the characteristics of the board Chairman on CH as a tool for risk management and financing investment opportunities. Simultaneously, our results help capital market authorities by outlining the importance of reconsidering the governance regulations regarding the different characteristics and roles of the board Chairman.
Originality/Value - This study pioneeringly clarifies the impact of three characteristics of the board’s Chairman (CHOW, CHCESF, and CHRF) on CH.
| Original language | English |
|---|---|
| Journal | Review of Accounting and Finance |
| Early online date | 22 Sept 2025 |
| DOIs | |
| Publication status | E-pub ahead of print - 22 Sept 2025 |