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Effects Of Board Design And Managerial Ownership On The Level Of Cash Holdings In Latin American Firms, Pengyu Qian

Culminating Projects in Economics

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 …