Investigating the effect of the presence of women on the board and the overconfidence of managers on Excess liquidity
Subject Areas : Woman and Society
1 - Department of Accounting, Faculty of Management and Accounting, Sabzevar Branch, Islamic Azad University, Sabzevar, Iran.
Keywords: Presence of women on the board, Excess liquidity, Overconfidence of managers, Financial leverage, Firm size,
Abstract :
Introduction: The main purpose of this study is to determine the impact of female managers, overconfidence of managers and surplus liquidity. In the discussion of cash and surplus liquidity, the conflict between managers and shareholders should not be overlooked. During the company's economic growth, as cash reserves increase, the company faces a surplus of liquidity, and managers are faced with the decision of whether to distribute the cash among shareholders or spend it internally and externally, or keep it stagnant. It is very important for managers to make decisions about what to do between consuming and maintaining excess cash.
Methods: This study was conducted for a 5-year period from 2019 to 2023 using the mixed data method in 152 companies listed on the Tehran Stock Exchange. After examining the availability of information, the sample data of the companies under study were collected and categorized using Excel software and analyzed using Eviews software in the form of a regression model and panel data.
Findings: The results of the study showed; there is a negative relationship between the presence of women in the board of directors and excess liquidity, and this relationship is also significant. Given the characteristics of women on the board who are always conservative, this trait can have a negative effect on liquidity surplus. It also overemphasizes the relationship between women's presence on the board and excess liquidity, and the relationship is positive and meaningful. Because managers' overconfidence is consistent with their risk-taking, it can positively adjust the relationship between female variability in the board and excess liquidity.
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