Analysis of the Influence of Bank Governance on Cash Holdings of Banks in Ghana

The purpose of current paper is to examine the impact of bank governance CG on cash holdings CH of universal banks in Ghana. Different characteristics of CG including board independence, board size, insider ownership and CEO duality were examined to check their impact on CH of banks. The panel data on 25 universal banks covering the period of 2009 2018 were used for the study. The panel least square repression model was utilized where the Eviews computer software version 11.0 was used for analysis of the data. The correlations analysis and Panel least square regression were used as the key analytical techniques. Findings from the study reveal that, Board size, working capital and Bank size constitute the predominant statistically significant factors that contributes to cash holdings among the universal banks. Hence Board size as significant corporate governance dimension has negative effect on cash holdings as it reduces cash holdings of the banks. The results show that CEO Duality has a positive but insignificant impact on Cash Holdings of the universal banks while board independent and insider ownership have negative but statistically insignificant influence on cash holdings of the universal banks. The study contributes to shaping the Bank governance policies for universal banks and the financial sector in the developing countries. Samuel Asubonteng | Yusheng Kong "Analysis of the Influence of Bank Governance on Cash Holdings of Banks in Ghana" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1 , December 2020, URL: https://www.ijtsrd.com/papers/ijtsrd38139.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/38139/analysis-of-the-influence-of-bank-governance-on-cash-holdings-of-banks-in-ghana/samuel-asubonteng