Banca de DEFESA: RAYARA ALVES SANTOS

THE RELATIONSHIP BETWEEN THE COMPOSITION OF THE BOARD OF MANAGEMENT AND CASH RETENTION IN COMPANIES OF OPEN CAPITAL

Capital Structure. Corporate Governance. Cash Holding. Management Board

Cash management efficiently is a necessary condition for the maintenance of sustainability organizational financial and factors that influence cash holding decisions in the firms has been the subject of recent research. So, the objective of this dissertation was to investigate the relationship between Board composition and cash holding in light of theories such as Agency Theory, Trade-Off Theory and Pecking Order Theory. For this purpose, a quantitative survey was conducted on a sample with 2,340 observations in 234 publicly traded companies listed on the Brazil, Bolsa, Balcão (B3) in the period from 2010 to 2019. In order Tobit Random Effects was the best fitted econometric model to estimate the variables in both unrestricted and restricted forms manner and test six (6) hypotheses raised about the relationship between board composition (independence, duality, board gender, size, expertise, and director compensation) and cash holding. The results demonstrated statistical significance at the ten percent (10%) level between the dependent variable Cash Retention (REC1) and the independent variables: Expertise (EX) and CEO Duality (DU). Among the control variables, the ones that presented statistical significance were Cash Flow Volatility (VFC) and Working Capital (CG). Additionally, robustness analysis tests were carried out with an alternative proxy for cash retention in order to verify the maintenance, or not, of the empirical evidence found. In view of this, it is concluded that Corporate Governance, through the composition of the Board of Directors, Expertise and Duality of the CEO, is able to influence the cash retention policy in companies