An Empirical Study Of Internal Governance Of Listed Companies Impacts On Cash Holdings

In recent years, corporate cash holdings is one of the hot academic research, many domestic and foreign scholars have conducted a number of theoretical and empirical research, to obtain a wealth of research results. Foreign and domestic literature shows that corporate governance and corporate cash holdings have close links.As China's economy is in transition, market economy system is not perfect. The more perfect the market economic system in developed countries, economic development, so there is a big gap. Therefore, many foreign scholars have done in cash holdings factors research, whether in China combined with practical application requires further study. In this paper, combined with our unique system of background to our sample of listed companies as a research study on corporate governance, the impact of corporate cash holdings can be achieved in line with the findings of China's national conditions, this will further improve our corporate governance status quo. improve cash management level.Based on the close links between corporate governance and cash holdings and the special corporate governance, especially in the current complete share reform.there is need for further research of the specific relationship between corporate governance and cash holdings. This is great theoretical and practical significance to improve the phenomenon of excessive cash holdings, further improve corporate governance and strengthen the financial management level. Help the company develop a reasonable decisions of cash holdings, which can better protect the interests of shareholders.This article attempts to examine the specific impact of the corporate governance on the corporate cash holdings from two sides, which is board characteristics and ownership structure.Based on the theoretical analysis and relevant data, we establish panel data models for the empirical analysis.We also analyze the conclusions and give the interpretation.In the end. the article shows the corresponding policy recommendations. Empirical results show that:the characteristics of three variables on behalf of the board characteristics did not act on the constraints of excessive cash holdings, but have little impact on cash holdings. This phenomenon may be related to the imperfect current board system, poor oversight and the independent directors, which did not fully play its role. In the equity structure, the proportion of the largest shareholder and the concentration of the top five shareholders correlated cash holdings significantly, the higher the ratio of these, the more cash the sample companies hold; compared to non-state-owned holding enterprises, state-controlled enterprises tend to hold more cash:higher proportion of institutional investors holding, less corporate cash holdings, indicated that institutional investors can improve corporate governance and play a positive role to solve the problem from two types of agents. The proportion of managerial ownership on cash holdings has a negative impact, but not significantly. This may be related to our current level of managerial ownership, which is generally low.