Board dynamics and corporate cash holding: Bahrain Bourse

Abstract

This study investigates the impact of board gender diversity on corporate cash holdings in non-financial firms listed on Bahrain Bourse, with dividend yield behaving as a mediator and political connections as a moderator. Analysis of panel data from 2014 to 2023 utilizing fixed and random effects models indicates that political connections diminish the diversity-dividend relationship; however, the effect lacks statistical significance. The results suggest that politically connected corporations may prioritize cash efficiency less, because Bahrain’s governance environment were political connections and dividend culture impact financial choices. The research provides insights into enhancing governance practices in Gulf Cooperation Council (GCC) markets.