Influence of Director Expertise on Capital Structure and Cash Holdings in High-Tech Firms

Iyer, Subramanian R.; Sankaran, Harikumar; Walsh, Steve

doi:10.1016/j.techfore.2020.120060

Cited by 5 publications

(1 citation statement)

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“…Several studies have examined the influence of different board characteristics on performance and practices in the banking sector (Bezawada and Adaelli, 2020;Karavitis et al, 2021;Mishra and Nielsen, 2000;Tam et al, 2021) or the manufacturing sector (Datta et al, 2020). Furthermore, Iyer et al (2020) investigated how corporate governance, as represented by BOD diversity, might solve the problem of cash holdings in high-tech firms, arguing that such firms operate under high market valuations and suffer low cash flows due to investing most of their earnings in research and development activities. Also, Elmagrhi et al (2021) investigated whether governing board mechanisms and vice-chancellor characteristics influenced voluntary governance disclosures in United Kingdom (UK) higher education institutions.…”

Section: Introductionmentioning

confidence: 99%

Hospitality and tourism firms' board characteristics, board policies and tourism sector performance: what is the nexus?

Nimer

Kuzey²,

Uyar³

2023

IJPPM

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PurposeThis study investigated the micro–macro link in the hospitality and tourism (H&T) sector, specifically considering whether the gender diversity, independence and board attendance rates of H&T firms' boards, alongside the moderation effect of board policies, played a significant role in tourism sector performance.Design/methodology/approachThe 2011–2018 data were retrieved from the World Bank and the Thomson Reuters Eikon databases, and fixed effects panel regression was conducted.FindingsWhile female directors were a significant driver of tourism sector performance in terms of tourist arrivals and tourism receipts, independent directors were effective in improving tourist arrivals only. Furthermore, moderation analyses demonstrated the inefficacy of board policies in enhancing these directors' contributions to the sector's development. Moreover, the findings revealed the inefficiency of board meetings.Practical implicationsConcerning the efficacy of board policies, the results suggest that firms' boards should review and revise their policies. Surprisingly, while board-diversity policies made no difference to female directors' role in the sector's development (although females were influential), board-independence policies produced unexpected results. In the absence of a board-independence policy, independent directors are influential, but if a policy exists, they are not.Originality/valueAlthough prior firm-level studies tested whether board characteristics enhanced firms' performance in the H&T sector, they did not investigate whether board characteristics promoted tourism sector performance. Moreover, the moderating effect of board policies on boards' structures and tourism sector performance has not yet been examined.

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