GENDER CHIEF EXECUTIVE OFFICER DAN CASH HOLDING

Taufik Hidayat, Annisaa Rahman

Abstract


Research Purposes. This study aims to examine the effect of the chief executive officer gender on cash holding.

Research Method. This study is a quantitative study with the dependent variable cash holding and the chief executive officer gender as the independent variable. Cash holding is measured by cash and cash equivalents divided by total assets, while gender chief executive officer is measured by the dummy variable female or male CEOs. This research was conducted on all non-financial companies listed on the Indonesia Stock Exchange in 2017-2019, with total sample company of 1134 companies - years. The research data was sourced from annual reports and financial reports, and data analyszed using multiple linear regression.

Research Result and Findings. The results of this study indicate that the gender of the chief executive officer has a significant positive effect on cash holding. These findings provide support for the theory that women tend to avoid risk (risk aversion) and lack confidence in the decision-making process compared to men so they tend to have policies to hold more cash, which the findings of this study are in line with precautionary motives.

Save to Mendeley


Keywords


Gender; Chief Executive Officer; Cash Holding

Full Text:

PDF

References


Acharya, V. V., Almeida, H., dan Campello, M. (2007). Is Cash Negative Debt? A Hedging Perspective on Corporate Financial Policies. Journal of Financial Intermediation, 16(4), 515-554.

Adams, R. B. dan Ferreira, D. (2009). Women in The Boardroom and Their Impact on Governance and Performance. Journal Of Financial Economics, 94(2), 291-309.

Adhikari, B. K. (2018). Female Executives and Corporate Cash Holdings. Applied Economics Letters, 25(13), 958-963.

Afza, T., dan Adnan, S. M. (2007). Determinants of Corporate Cash Holdings: A Case Study of Pakistan. Prosiding. Singapore Economic Review Conference: Singapura.

Ali, A., dan Yousaf, S. (2013). Determinants of Cash Holding in German Market. Journal of Business and Management, 12(6), 28-34.

Alvarez, F. E., Guiso, L., dan Lippi, F. (2012). Durable Consumption and Asset Management with Transaction and Observation Costs. American Economic Review, 102(5), 2272-2300.

Anjum, S., dan Malik. Q. A., (2013). Determinants of Corporate Liquidity - An Analysis of Cash Holdings. IOSR Journal of Business and Management. 7(2), 94-100.

Al-Najjar, B. (2013). The Financial Determinants of Corporate Cash Holdings: Evidence from Some Emerging Markets. International Business Review, 22(1), 77-88.

Almeida, H., Campello, M., Cunha, I. dan Weisbach, M. S. (2014). Corporate Liquidity Management: A Conceptual Framework and Survey. Annual Review of Financial Economics, 6, 135- 162.

Anabestani, Z., dan Shourvarzi, M. R. (2014). Cash Holdings, Firm Value and Corporate Governance. Asian Journal of Research in Banking and Finance, 4(4), 128-143.

Barua, A., Davidson, L. F., Rama, D. V. dan Thiruvadi, S. (2010). CFO Gender and Accruals Quality. Accounting Horizons, 24(1), 25-39.

Bates, T. W., Kahle, K. M. dan Stulz, R. M. (2009). Why Do Us Firms Hold So Much More Cash Than They Used To?. The Journal Of Finance, 64(5), 1985-2021.

Bhagat, S., dan Obreja, I. (2013). Employment, Corporate Investment and Cash Flow Uncertainty. Didapatkan dari https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1923829, 20 April 2021, pukul 15:30 WIB.

Bigelli, M., dan Sánchez-Vidal, J. (2012). Cash Holdings in Private Firms. Journal of Banking & Finance, 36(1), 26-35.

Boal, K. B., dan Hooijberg, R. (2000). Strategic Leadership Research: Moving On. The Leadership Quarterly, 11(4), 515-549.

Boatright, J. R. (2009). From Hired Hands to Co-Owners: Compensation, Team Production, and The Role of The CEO. Business Ethics Quarterly, 19(4), 471-496.

Boubaker, S., Derouiche, I. dan Nguyen, D. K. (2015). Does The Board of Directors Affect Cash Holdings? A Study of French Listed Firms. Journal Of Management & Governance, 19(2), 341-370.

Campbell, S., Nazliben, K. K. dan Hosseini, F. (2019). The Effect of CEO Gender on Corporate Cash Holdings within Indian Firms. (Tesis, Department of Finance, Tilburg University, Tilburg, Belanda). Didapatkan dari http://arno.uvt.nl/show.cgi?fid=150480.

Campello, M., Giambona, E., Graham, J. R. dan Harvey, C. R. (2011). Liqudity Management and Corporate Investment During A Financial Crisis. The Review of Financial Studies, 24(6), 1944-1979.

Chen, G., Crossland, C. dan Huang, S. (2016). Female Board Representation and Corporate Acquisition Intensity. Strategic Management Journal, 37(2), 303-313.

Chen, J., Leung, W. S., dan Goergen, M. (2017). The Impact of Board Gender Composition on Dividend Payouts. Journal of Corporate Finance, 43, 86-105.

Christina, Y. T. dan Ekawati, E. (2014). Excess Cash Holdings dan Kepemilikan Institusional Pada Perusahaan Manufaktur yang Terdaftar di BEI. Jurnal Manajemen Strategi Bisnis dan Kewirausahaan, 8(1), 1-10.

Cossin, D. dan Hricko, T. (2004). The Benefits of Holding Cash: A Real Options Approach. Managerial Finance, 30(5), 29-43.

Faccio, M., Marchica, M. T., dan Mura, R. (2016). CEO Gender, Corporate Risk-Taking, and The Efficiency of Capital Allocation. Journal of Corporate Finance, 39, 193-209.

Ferreira, M. A. dan Vilela, A. S. (2004). Why Do Firms Hold Cash? Evidence From EMU Countries. European Financial Management, 10(2), 295-319.

Field, A. (2009) Discovering Statistics Using SPSS (edisi ke-3). London: Sage Publications Ltd.

Gao, H., Harford, J. dan Li, K. (2013). Determinants of Corporate Cash Policy: Insights From Private Firms. Journal of Financial Economics, 109(3), 623-639.

George, D. dan Mallery, P. (2011). SPSS for Windows Step By Step: A Simple Study Guide and Reference. Chennai: Pearson Education India.

Gill, A. dan Shah, C. (2012). Determinants of Corporate Cash Holdings: Evidence From Canada. International Journal of Economics and Finance, 4(1), 70-79.

Glick, M. B. (2011). The Role of Chief Executive Officer. Advances in Developing Human Resources, 13(2), 171-207.

Gul, F. A., Srinidhi, B. dan Ng, A. C. (2011). Does Board Gender Diversity Improve The Informativeness of Stock Prices?. Journal Of Accounting and Economics, 51(3), 314-338.

Hambrick, D. C., dan Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9(2), 193-206.

Hiller, N. J., dan Beauchesne, M. M. (2014). Executive Leadership: CEOs, Top Management Teams, and Organizational-Level Outcomes. Dalam Day, D. V. (Ed). The Oxford Handbook of Leadership and Organizations (h. 556-588). New York: Oxford University Press.

Huang, J. dan Kisgen, D. J. (2013). Gender and Corporate Finance: Are Male Executives Overconfident Relative to Female Executives?. Journal of Financial Economics, 108(3), 822-839.

Hunter, D. M. dan Sah, N. (2014). Cash Is Queen: Female CEOs’ Propensity to Hoard Cash. Working Paper. University of South Florida: Tampa, St. Petersburg dan Sarasota.

Islam, S. (2012). Manufacturing Firms' Cash Holding Determinants: Evidence from Bangladesh. International Journal of Business and Management, 7(6), 172-184.

Jamil, S., Anwar, A., Afzaal, N., Tariq, A. dan Asif, M. (2016). Determinants of Corporate Cash Holdings: Empirical Analysis of Pakistani Firms. IOSR Journal of Economics and Finance, 7(3), 29-35.

Janis, I. L. (1982). Groupthink: Psychological Studies of Policy Decisions and Fiascoes. Boston: Houghton Mifflin.

Jensen, M. C. (1986). Agency Cost of Free Cash Flow, Corporate Finance and Takeovers. The American Economic Review, 76(2), 323-329.

Kariuki, S. N., Namusonge, G. S. dan Orwa, G. O. (2015). Determinants of Corporate Cash Holdings: Evidence From Private Manufacturing Firms In Kenya. International Journal of Advanced Research in Management and Social Sciences, 4(6), 15-33.

Kuan, T. H., Li, C. S., dan Chu, S. H. (2011). Cash Holdings and Corporate Governance in Familycontrolled Firms. Journal of Business Research, 64(7), 757-764.

Liang, S. H., Hsieh, Y. T., Lin, H. C. dan Chi, P. W. (2018). The Effect of CEO Gender on Corporate Cash Holdings and Over-investment Problems-Evidence from Taiwan. Advances in Economics and Business, 6(1), 26-35.

Rahman, A. dan Kartika, R., (2021) Keterbacaan Informasi Naratif Laporan Tahunan dan Cash Holdings. Jurnal Ilmiah Akuntansi, 6(1), 163-180.

Riyanto, B. (2008). Dasar-Dasar Pembelanjaan Perusahaan. Yogyakarta: BPFE.

Rovers, M. L. (2013). Women on Boards and Firm Performance. Journal of Management & Governance, 17(2), 491-509.

Mahbubi, J. (2016). Gender CEO dan Keputusan Keuangan Perusahaan di Indonesia. (Skripsi, Fakultas Ekonomi dan Bisnis Universitas Airlangga, Surabaya, Indonesia). Didapatkan dari https://repository.unair.ac.id/52808/2/b%20269%2016%20mah%20g.pdf.

Mardhatillah, M. (2018). Faktor-Faktor yang Mempengaruhi Cash Holding. (Skripsi, Program Studi Akuntansi, Universitas Andalas, Padang, Indonesia). Didapatkan dari http://scholar.unand.ac.id/40600/.

Marks, J. L., Lam, C. B. dan McHale, S. M. (2009). Family Patterns of Gender Role Attitudes. Sex Roles, 61(3-4), 221-234.

Mugumisi, N., dan Mawanza, W. (2014). Corporate Cash Holding Under Liquidity Crisis: A Panel Analysis of Zimbabwean Firms. Research Journal of Economics & Business Studies, 3(3), 66-76.

Newman, D. M., dan Grauerholz, E. (2002). Sociology of Families. Thousand Oaks: Pine Forge Press.

Nhan, D. T. T. (2016). A Review of Cash Holding and Corporate Governance Mechanisms in Transition Economies. International Review of Management and Marketing, 6(S8), 354-358

Ogundipe, L.O., Ogundipe, S.E., dan Kehinde, A.S. (2012), Cash Holding and Firm Characteristics: Evidence from Nigerian Emerging Market. Journal of Business, Economics and Finance, 1(2), 45-58.

Opler, T., Pinkowitz, L., Stulz, R., dan Williamson, R. (1999). The Determinants and Implications of Corporate Cash Holdings. Journal of Financial Economics, 52(1), 3-46.

Ozkan, A., dan Ozkan, N. (2004). Corporate Cash Holdings: An Empirical Investigation of UK Companies. Journal of Banking & Finance, 28(9), 2103-2134.

Scott, J. W. (1986). Gender: A Useful Category of Historical Analysis. The American Historical Review, 91(5), 1053-1075.

Sekaran, U. (2011). Research Methods for Business. Jakarta: Salemba Empat.

Suherman, (2017). Pengaruh CEO Wanita Terhadap Cash Holding Perusahaan. MIX: Jurnal Ilmiah Manajemen, 7(1), 48-58.

Wang, G. Y. (2010). The Impacts of Free Cash Flows and Agency Costs on Firm Performance. Journal of Service Science and Management, 3(04), 408-418.

Weitzman, L. J., Eifler, D., Hokada, E. dan Ross, C. (1972). Sex-Role Socialization in Picture Books for Preschool Children. American Journal of Sociology, 77(6), 1125-1150.

William, dan Fauzi, S. (2013). Analisis Pengaruh Growth Opportunity, Net Working Capital, dan Cash Conversion Cycle Terhadap Cash Holdings Perusahaan Sektor Pertambangan. Jurnal Ekonomi dan Keuangan, 1(2), 72-90.

Winarta, B. J., Djuaeriah, N., dan Bustaman, Y. (2018). CEO Characteristics on Cash Holdings & Overinvestment: Evidence from Indonesian Firms. Journal of Management Practices, Humanities and Social Sciences, 2(2), 28-34.

Zeng, S., dan Wang, L. (2015). CEO Gender And Corporate Cash Holdings. Are Female CEOs More Conservative?. Asia-Pacific Journal of Accounting & Economics, 22(4), 449-474.




DOI: https://doi.org/10.33508/jako.v14i2.3101