The effects of Board characteristics on cash holdings
| Board characteristics | Meaning | Effects on cash holdings |
|---|---|---|
| Board size | Number of directors that sit on the board | Positive |
| Board composition | Percentage of non-executive board members | Negative |
| Board independence | Percentage of independent directors on the total number of directors that sit on the board | Negative |
| Board diversity | Percentage of independent women directors on the total number of board members | Negative |
| Board activity | Number of meetings in 1 year and the average duration of each meeting | Negative (frequency) |
| Positive (duration) | ||
| Audit/compensation/nomination committee composition | Percentage of non-executive board members | Negative |
| Audit/compensation/nomination committee independence | Percentage of independent board members on the committee | Negative |
| Audit/remuneration/nomination committee activity | Number of meetings in 1 year, and the average duration of each meeting | Negative (frequency) |
| Positive (duration) | ||
| CEO duality | Overlap between CEO and chairman | Positive/Negative |
| Board characteristics | Meaning | Effects on cash holdings |
|---|---|---|
| Board size | Number of directors that sit on the board | Positive |
| Board composition | Percentage of non-executive board members | Negative |
| Board independence | Percentage of independent directors on the total number of directors that sit on the board | Negative |
| Board diversity | Percentage of independent women directors on the total number of board members | Negative |
| Board activity | Number of meetings in 1 year and the average duration of each meeting | Negative (frequency) |
| Positive (duration) | ||
| Audit/compensation/nomination committee composition | Percentage of non-executive board members | Negative |
| Audit/compensation/nomination committee independence | Percentage of independent board members on the committee | Negative |
| Audit/remuneration/nomination committee activity | Number of meetings in 1 year, and the average duration of each meeting | Negative (frequency) |
| Positive (duration) | ||
| CEO duality | Overlap between CEO and chairman | Positive/Negative |
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