Directors’ education and corporate liquidity: evidence from boards in Taiwan
Journal
Review of Quantitative Finance and Accounting
Journal Volume
49
Journal Issue
2
Pages
463-485
Date Issued
2017
Author(s)
Abstract
This study relates a firm’s cash holdings and their value to the board of directors’ level of education. Using a sample of firms on the Taiwan Stock Exchange during the period from 2006 to 2012, we find that firms with a highly educated board tend to hold more cash and are associated with a higher value of cash. This fact is especially evident among financially constrained firms. Our findings suggest that highly educated boards provide more efficient monitoring and advisory functions, and thus complement corporate governance. © 2016, Springer Science+Business Media New York.
Subjects
Cash holdings
Corporate governance
Director
Education
Organizational legitimacy
Type
journal article