Corporate cash hoarding and corporate governance mechanisms : evidence from Borsa Istanbul

This study aims to examine the impact of corporate governance mechanisms on the cash hoarding decision. The study focuses on BIST100 non-financial firms listed on Borsa Istanbul over the period from 2010 to 2014. The study finds that firms with larger size of board of directors are more likely to hoard cash than firms with smaller board size. However, it finds firms with larger size of audit committee are more likely to hold less cash than firms with smaller audit committee size. Besides, it finds that firms with larger percent of independent directors are more likely to hoard more cash than firms with smaller percent of independent directors. It, also, finds that when the CEO of a firm is also the chairman, the firm tends to hoard more cash. Further, the study finds that firms audited by non-big auditor are more likely to hold more cash than firms audited by big auditor. The results suggest that firms with good corporate governance mechanisms (except for percent of independent directors) are less likely to hoard cash