Electronic voting in shareholder meetings and the market value of cash holdings |
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| Institution: | 1. Department of Business Administration, Sejong University, 209 Neungdong-ro, Gwangjin-gu, Seoul 05006, South Korea;2. School of Business Administration, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06974, South Korea;1. School of Mathematics, Southwest Jiaotong University, Chengdu, China;2. School of Finance, Renmin University of China, Beijing, China;3. School of Finance, Nanjing University of Finance and Economics, Nanjing, China;1. School of Mathematics and Finance, Anhui Polytechnic University, Wuhu, China;2. Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China;3. Data-Driven Management Decision Making Lab, Shanghai Jiao Tong University, Shanghai, China;1. College of Management, Yuan Ze University, Taoyuan City 32001, Taiwan;2. Department of Finance, National Central University, Taoyuan City 32001, Taiwan;1. School of Economics and Management, Shanghai Maritime University, China;2. UWA Business School, The University of Western Australia, M250, 35 Stirling Highway, Crawley, WA 6009, Australia;3. Business School, Renmin University of China, China;1. College of Management and Economics, Tianjin University, Tianjin 300072, China;2. School of Economics and Finance, Massey University, New Zealand;1. Jinan University, China;2. Guangzhou University, China |
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| Abstract: | Electronic voting in shareholder meetings facilitates shareholders' direct monitoring by reducing the cost of attending the meetings. This study investigates how adopting electronic voting in shareholder meetings affects the market value of cash holdings. We document that the value of cash holdings is higher for firms adopting electronic voting than for non-adopting firms, especially for firms with large minority ownership and free cash flows. The increased value of cash is attributable to firms engaging in investments that are more value relevant. Collectively, the findings suggest that shareholders perceive corporate governance as strengthened with the adoption of electronic voting. This study contributes to the literature by providing initial empirical evidence on the benefits of electronic voting. |
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