Alignment or entrenchment? Corporate governance and cash holdings in growing firms

• Published in: Journal of business research Vol. 62; no. 11; pp. 1200 - 1206
• Main Authors: Chen, Yenn-Ru, Chuang, Wei-Ting
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01.11.2009; Elsevier; Elsevier Sequoia S.A
• Series: Journal of Business Research
• Subjects: Board of directors; Boards of directors; Business ownership; Cash flow; Cash holdings; Cash holdings Ownership Board of directors Founder CEO Venture capital; Chief executive officers; Corporate governance; Founder CEO; High tech industries; Impact analysis; Ownership; Ownership and control; Studies; Venture capital; Venture capital companies; Ownership; Cash holdings; Founder CEO; Board of directors; Venture capital

This study contends that the association between corporate cash holdings and corporate governance is subject to the investment environments that firms face. For example, firms with an abundance of investment opportunities have a strong incentive to hold cash in order to maintain their competitive po...