Cash holdings, board governance characteristics, and Egyptian firms’ performance

Ali, Mohamed Ali Shabeeb; Aly, Saleh Aly Saleh; Abdelazim, Samir Ibrahim; Metwally, Abdelmoneim Bahyeldin Mohamed

doi:10.1080/23311975.2024.2302205

Cited by 10 publications

(2 citation statements)

References 86 publications

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“…Characteristics of well-governed firms often include inclusivity and gender-diverse boards, which have been shown to enhance oversight of managerial activities and better assess managers' motives based on their actions, potentially leading to decisions against excessive cash holdings (Carter et al , 2010; Bear et al , 2010; Joecks et al , 2013). The agency problem primarily arises from the separation between ownership and control, where managers might be incentivized to retain cash for pursuing personal benefits, engaging in opportunistic behaviors (Jensen, 1986; Malmendier and Tate, 2008; Chen et al , 2020; Ali et al , 2024). This retention and utilization of cash for private purposes prevent the return of cash to shareholders, indicating weak corporate governance when managers successfully engage in such activities (Pinkowitz et al , 2006; Dittmar and Mahrt-Smith, 2007).…”

Section: Theory Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Board gender diversity and corporate cash holdings: evidence from Australia

Ahmed,

Hussain

2024

IJAIM

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Purpose This study aims to understand the dynamics of Australian boards by focusing on the influence of board gender diversity on firms' cash holdings, within the distinctive Australian “if not, why not” regulatory framework. Design/methodology/approach The study uses ordinary least squares (OLS), fixed effects, generalized method of moments (GMM) and quasi-experimental methods such as difference-in-differences and propensity score matching to analyze the data. Findings There is a significantly negative relationship between board gender diversity and corporate cash holdings. This relationship is more pronounced when two or more female directors are on the board, supporting the critical mass theory. The results also reveal that the observed pattern can be attributed to the heightened monitoring intensity of female independent directors. Our quasi-experimental methods and pre-post analysis reveal that the observed effects are genuinely attributable to the increase in board gender diversity following regulatory reforms in Australia. Practical implications The findings provide practical insights for companies and policymakers, emphasizing the tangible effects of gender diversity on a company's financial strategy and corporate cash holdings. This information is crucial for organizations aiming to make informed decisions regarding board compositions and governance structures. Originality/value This research offers fresh insights into an important relationship between gender diversity on boards and corporate financial strategies in the Australian context, enriching the global conversation on the significance of gender diversity in corporate leadership.

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Section: Theory Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Board gender diversity and corporate cash holdings: evidence from Australia

Ahmed,

Hussain

2024

IJAIM

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“…As a result of this trend, stakeholders are increasingly urging management to prioritize environmental concerns and assess environmental and financial performance [17,18]. To achieve this goal, many companies are considering the adoption of sustainability and its related environmental strategies [8,19].…”

Section: Introductionmentioning

confidence: 99%

Institutional Pressures and Environmental Management Accounting Adoption: Do Environmental Strategy Matter?

Alnaim,

Metwally

2024

Sustainability

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This paper examines the impact of institutional pressures (IPs) on Environmental Management Accounting adoption (EMA). The current research also aims to examine the moderating effect of environmental strategy (ES) on the relationship between IP and EMA. Data were collected from managers working in all registered Egyptian manufacturing companies (N = 491). The collected data were analyzed using smart partial least squares (Smart-PLS) software. The results revealed that there is a positive significant relationship between IP’s three components, namely, coercive, normative, and mimicry pressures, and EMA. The results also revealed that ES was found to moderate the relationship between IP and EMA. The study model was able to explain 68.9% of the variance in EMA adoption. The findings of this study serve as a pivotal yardstick for guiding corporate policy formulation, offering valuable insights to drive continuous improvements in EMA, environmental performance, and sustainable development. The present investigation extends the discourse on the role of IP and ES by revealing a substantial influence on EMA adoption. Positioned as one of the initial studies to delve into the moderating role of ES in the relationship between IP and EMA adoption, this research offers insights within an emerging market context.

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