RESEARCH ARTICLE
Female directors and cash holdings adjustment: Evidence from South Korea
Jagadison K. Aier,
Eun Hye Jo,
Jung Wha (Jenny) Lee,
Jagadison K. Aier
Costello College of Business, George Mason University, Fairfax, Virginia, USA
Search for more papers by this authorEun Hye Jo
Costello College of Business, George Mason University, Songdo, Incheon, Korea
Search for more papers by this authorCorresponding Author
Jung Wha (Jenny) Lee
Costello College of Business, George Mason University, Songdo, Incheon, Korea
Correspondence
Jung Wha (Jenny) Lee, School of Business, George Mason University, Songdo, Incheon 21985, Korea.
Email: [email protected]
Search for more papers by this authorJagadison K. Aier,
Eun Hye Jo,
Jung Wha (Jenny) Lee,
Jagadison K. Aier
Costello College of Business, George Mason University, Fairfax, Virginia, USA
Search for more papers by this authorEun Hye Jo
Costello College of Business, George Mason University, Songdo, Incheon, Korea
Search for more papers by this authorCorresponding Author
Jung Wha (Jenny) Lee
Costello College of Business, George Mason University, Songdo, Incheon, Korea
Correspondence
Jung Wha (Jenny) Lee, School of Business, George Mason University, Songdo, Incheon 21985, Korea.
Email: [email protected]
Search for more papers by this authorFirst published: 25 July 2024
Abstract
This paper investigates whether female board participation improves a firm's efforts to manage its cash holdings in Korea. We find that firms with female directors quickly adjust their cash holdings towards the target, particularly when they have excess cash, suggesting that female directors are more likely to respond to anticipated problems related to excess cash relative to liquidity problems that may arise on account of a cash shortage. Furthermore, the relationship between female directors and cash holding adjustment is stronger for non-chaebol affiliates, female-friendly companies, and non-controversial business environments.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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