Board characteristics and corporate cash holding: evidence from the UK, France and Germany

Purpose Prior studies suggest that corporate cash holding will reflect firms' governance (CG) environment. Consistent with this prediction, study aims to examine the impact of board characteristics on in UK, France and Germany. Design/methodology/approach Using 2,805 firm-year observations between 2009 2019, authors relationship holding. The used two measures holdings as our dependent variables. As independent variables, CG relevant effective monitoring such meetings, outside directors, size gender diversity. Findings find influence firms However, documents evidence varying impacts UK when compared German French firms, countries are classifiable bank-based economies. result is robust alternative cash-holding endogeneity. Practical implications This provides supporting board's mitigating agency conflict shareholder- stakeholder-oriented environments. Originality/value contributes previous works firms’ financial orientation by showing varies bank- market-based