Chung-Ang University Study Reveals a Higher Market Valuation of Cash Holdings of Firms Adopting Electronic Voting
In the present study, the authors suggest that electronic voting enhances shareholders' perception of corporate governance and increases the market value of a firm's cash holdings.
- In the present study, the authors suggest that electronic voting enhances shareholders' perception of corporate governance and increases the market value of a firm's cash holdings.
- "Electronic voting can contribute to effective corporate governance by easing shareholders' monitoring and engagement in corporate decisions, which improves the firm's investment decisions, resulting in increased market valuation of a firm's cash holdings," explains Dr. Ha.
- Using a sample of 12,207 Korean firm-years from 2015 to 2021, the authors examined how the market valuation of cash holdings differs for firms that adopt electronic voting in shareholder meetings.
- The authors found that firms that adopt electronic voting have a greater market value of cash holdings compared to those that did not.