The Impact of Corporate Governance Variables on Cash Holding Ratios of UK Firms: GMM Dynamic Panel Data Analysis

Abstract

This study aims to analyze the relationship between cash holding ratios and corporate governance policy outcomes in companies. For this purpose, a 10-year period spanning from 2013 to 2022 of listed companies in the United Kingdom has been investigated. The independent variables selected include the CSP score, ESG score, board size, proportion of female board members, and proportion of independent board members. The Dynamic Panel Regression (GMM) method has been employed for data analysis. The results indicate a positive relationship between the CSP score, ESG score, board size variables, and cash holding ratio, while a negative relationship is found with the proportion of female board members. No significant relationship has been found with the proportion of independent board members.

Keywords

• Cash Holding Ratio
• Corporate Social Responsibility
• Determinants of Corporate Cash Holdings

Kurumsal Yönetim Değişkenlerinin İngiltere Firmalarının Nakit Tutma Oranına Etkisi: GMM Dinamik Panel Veri Analizi

Abstract

Çalışmanın amacı şirketlerde nakit tutma oranı ile kurumsal yönetim politika sonuçlarının ilişkisini analiz etmektedir. Bu amaçla İngiltere’deki borsa şirketlerinin 2013-2022 yıllarını kapsayan 10 yıllık dönemi araştırılmıştır. Bağımsız değişken olarak Kurumsal Sürdürülebilirlik Performansı (Corporate Sustainability Performance - CSP) skoru, Çevre, Sosyal, Yönetişim (Environment, Social, Governance - ESG) skoru, yönetim kurulu büyüklüğü, yönetim kurulu kadın üye oranı ve yönetim kurulu bağımsız üye oranı seçilmiştir. Verilerin analizi için Generalized Moments Method (GMM) dinamik panel regresyon yöntemi kullanılmıştır. Sonuçta CSP skoru, ESG skoru, yönetim kurulu büyüklüğü değişkenlerinin nakit tutma oranı ile pozitif, yönetim kurulu kadın üye oranı ile negatif yönlü ilişkisi bulunmuştur. Yönetim kurulu bağımsız üye oranıyla ilgili anlamlı bir ilişki bulunamamıştır.

Keywords

• Nakit Tutma Oranı
• Kurumsal Sosyal Sorumluluk
• Kurumsal Nakit tutma Belirleyicileri

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