Purpose This study aims to provide a review of corporate governance and cash holdings because strong corporate governance is necessary for the efficient utilization of firm’s liquid resources such as cash, to minimize the agency cost of high cash holdings and to improve the value of cash. Design/methodology/approach The authors provide a literature review of corporate governance and cash holdings through a conceptual and theoretical argument rather than empirical research. Findings The authors review an empirical and theoretical work surrounding key corporate governance variables and identify avenues for future research. The authors find that corporate governance mechanisms and cash holdings have received much attention during the past two decades. However, the significant role of corporate governance (both country-level and the firm-level) in controlling the entrenched behaviour of the managers is discussed separately in the literature. The combined effect of both country-level and the firm-level governance is lacking in the cash holdings literature. Additionally, this study has found that much attention is paid to the developed markets, while only a few focused on the developing markets regarding cash holding literature, although the agency problems are high in developing markets. Originality/value The study contributes to the growing literature on corporate governance and cash holdings and provides a further understanding of the role of governance in minimizing the agency cost to increase value by assuring that firms’ assets are used efficiently and productively in the best interests of investors and other stakeholders. In addition, it provides a new idea to the policymaker and future researchers where they need to do more work.

Shari'ah governance provide strike conformity with Islamic businesses ethics and the expectation of its customers which aim at improving firms performance and societal welfare to eliminate poverty in the global setting. The purpose of this study is to investigate the impact of Shari'ah governance on Islamic banks (IBs) performance of 31 IBs of 4 countries of South Asia for the period of 2010-2016 and developed a CG index for IBs. Two types of analysis were performed; descriptive statistics and panel random effects model. It was found that IBs of Bangladesh gets higher ICG scores due to their larger Shari'ah boards, corporate boards, board independence and board meetings compare to others countries. The results of the model show that larger Shari'ah and corporate boards are value enhancing. The study suggests that considering the progressive stage and complexity of competition of IBs with historically mature and financial sound CBs, larger boards with strategic vision may provide IBs the competitive edge in the market.

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