Managerial Characteristics and Corporate Cash Policies
Date Issued
2014
Date
2014
Author(s)
Yeh, Chia-Wei
Abstract
There has been a surge of research on corporate cash holdings in recent years. While most previous studies mainly focus on the relation between firm characteristics and corporate cash policies, few empirical studies explore the effects of managerial characteristics on corporate cash holdings. We contribute the related literature by considering the managerial characteristics, such as age, tenure, confidence, and education, and conduct empirical tests to investigate their effects on corporate cash policies. We find that firms managed by CEOs with longer tenure and by overconfident CEOs tend to have higher levels of cash holdings. However, firms managed by CEOs with MBA degree tend to preserve less cash. Our study shows mixed evidence on the relation between the age of managers and corporate cash holdings. We also find that the agency problem of holding cash is more severe when firms are managed by overconfident CEOs. Further analyses suggest that senior and longer-tenured CEOs are more likely to hold cash for precautionary motives, but overconfident CEOs do not preserve cash for such reason. Furthermore, CEOs with MBA degree seem to invest more when their firms have excess cash. Overall, this dissertation provides a complete empirical evidence for the effects of managerial characteristics on corporate cash policies.
Subjects
現金持有
現金政策
管理者特質
管理者偏誤
Type
thesis
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