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Investment Committee, Corporate Cash Holdings and Corporate Life Cycle

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Listed:
  • Baban Eulaiwi
  • Ahmed Al‐Hadi
  • Syed Mujahid Hussain
  • Khamis Hamed Al‐Yahyaee

Abstract

We investigate the association between voluntary formation of board investment committee (IC) and corporate cash holdings of nonfinancial firms over the corporate life cycle stages for a large sample of Gulf Cooperation Council firms during 2005–2016. We find that IC increases corporate cash holdings in growth and maturity stages of firm, compared to introduction, shake‐out, and decline stages. These results have important implications for investors, policy makers, and regulators. Our findings are robust to various econometrics specifications.

Suggested Citation

  • Baban Eulaiwi & Ahmed Al‐Hadi & Syed Mujahid Hussain & Khamis Hamed Al‐Yahyaee, 2020. "Investment Committee, Corporate Cash Holdings and Corporate Life Cycle," International Review of Finance, International Review of Finance Ltd., vol. 20(3), pages 757-769, September.
    • Handle: RePEc:bla:irvfin:v:20:y:2020:i:3:p:757-769
    DOI: 10.1111/irfi.12240
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    References listed on IDEAS

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    Cited by:

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    4. Xiang, Xiaojian & Liu, Chuanjiang & Yang, Mian, 2022. "Who is financing corporate green innovation?," International Review of Economics & Finance, Elsevier, vol. 78(C), pages 321-337.

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