Firm value is influenced by risk characteristics of the firm in terms of both income and leverage. However, the
influence of cash holdings is less clear. Perhaps, this is because the evidence of on the reasons why firms
accumulate cash is less conclusive. Among the governance variables that show an influence on firm value is
the board size. Probably, this signifies the fact that companies with larger board sizes brings about better
management, weaken control by one individual and provides benefit of a diversified skill set and experience
which leads to a positive impact on share price. Shareholders, perhaps, do not value additional cedi (dollar)
accumulated by managers on the GSE. They would prefer that it was invested more profitably or paid back to
them. Though, corporate managers cannot directly influence the share price of the companies they manage on
the GSE, they can act in a manner consistent with the desires of investors which will consequently reflect on the
value of the company on the exchange. Corporate managers must review their governance structures in line
with the expectations of the investing public. In addition, corporate managers' desire to build financial slack will
significantly be discounted by shareholders, as this is not viewed as being in their interest. Returning additional
cash to shareholders or investing it in financially viable project is more preferred to storing it on the balance
sheet.