Board of director's composition and corporate cash holdings - The case of Vietnam

Abstract

This paper investigates the impact of board of director’s composition such as gender diversity, CEO duality, board independence and the size of board on the levels of firm cash holdings. Using the data set of 305 firms listed in Ho Chi Minh Stock Exchange (HOSE) in the period of 2013 to 2019, the findings show the positive effect of board gender diversity to the cash reserves of the firm; whereas Chief Executive Officer (CEO) duality decreases considerably the levels of cash holdings. Beside that, it can be concluded that the independence and the size of the board show no significant effect on the cash reserves of 305 firms listed on Ho Chi Minh Stock Exchange from 2013 to 2019. This study contributes to empirical studies on the impact of effective corporate governance on the performance of firms in the case of Vietnam.