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Effect of Female CEO and CFO on Cash Holdings on Food and Beverages Companies Listed on Indonesia Stock Exchange

Author

Listed:
  • Ade Awaludin

    (Jakarta State University, Jakarta, Indonesia)

  • Suherman

    (Jakarta State University, Jakarta, Indonesia)

  • Gatot Nazir Ahmad

    (Jakarta State University, Jakarta, Indonesia)

Abstract

The current trend in the management of large companies is implementation of the gender diversity measures. The existence of women at the top management became one of the growing issues recently, especially in corporate governance. The prevailing opinion is still that men are better and more deserving to hold the power of leaders in the company. But authors believe that this statement needs to be verified. The purpose of this study is to assess the impact of female CEO and CFO on cash holdings of Indonesian food and beverages companies. The data used in this study are the data from annual report of food and beverage companies listed on the Indonesia Stock Exchange for the 2016-2020 period. The company's cash holdings in this study are assessed on the basis of two indicators: a) the ratio of the cash and cash equivalents to the company's total assets; b) the ratio of the cash and cash equivalents to the company's net assets. The sample of the study is presented by 25 companies with 125 observations. For data analysis authors use the panel data regression analysis and the fixed-effect model. Microsoft Excel 2013, Stata/MP 16.0 and Reviews 10 software were used for data processing. The analysis results show that the female CEOs have a significant positive effect on the company's cash holdings, while female CFOs have no significant positive effect on the company's cash holdings. These results have the practical significance because they will help the business owner to make the right decision when he selects candidates for the position of CEO/CFO.

Suggested Citation

  • Ade Awaludin & Suherman & Gatot Nazir Ahmad, 2021. "Effect of Female CEO and CFO on Cash Holdings on Food and Beverages Companies Listed on Indonesia Stock Exchange," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 26-38, September.
    • Handle: RePEc:iaf:journl:y:2021:i:3:p:26-38
    DOI: 10.33146/2307-9878-2021-3(93)-26-38
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    References listed on IDEAS

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    1. Sanyun Zeng & Lihong Wang, 2015. "CEO gender and corporate cash holdings. Are female CEOs more conservative?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 22(4), pages 449-474, December.
    2. Binay K. Adhikari, 2018. "Female executives and corporate cash holdings," Applied Economics Letters, Taylor & Francis Journals, vol. 25(13), pages 958-963, July.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Hoitash, Rani & Hoitash, Udi & Kurt, Ahmet C., 2016. "Do accountants make better chief financial officers?," Journal of Accounting and Economics, Elsevier, vol. 61(2), pages 414-432.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cash holdings; female CEO; female CFO; gender diversity; top management;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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