Firms with higher board independence, smaller boards, and lower expected managerial entrenchment, have lower cash holdings. We find that the negative association between cash holdings and managerial entrenchment is mitigated by stronger board structures. Specifically, in firms with higher expected managerial entrenchment, those with higher proportion of outside director on the board and smaller board size have lower cash holdings. The author also finds that firm value is negatively associated with cash levels. The negative association between firm value and cash holdings is more pronounced in firms with lower proportion of outside directors, and larger boards, higher expected managerial entrenchment.