Characteristics Of The Board Of Directors, Cash Holdings And Growth Performance

With the gradual development of China’s market economy. SMEs have become the main force of the market has become an integral part of China’s economic. SMEs play an important role to ease the employment pressure, promote economic development and increase market diversification. But earlier by the financial crisis now facing debt crisis in Europe, many SMEs have been facing the plight of the development. Study the issues related to SME cash holdings in this context that I believe can guide SMEs how to use their own accumulated funds to achieve development, how to improve corporate governance to better determine the company should hold much cash.In this paper, the small and medium-sized listed companies, the study followed the decision of influencing factors from the cash holdings to cash held by the logical thinking of the economic consequences of the decision-making. By studying the board characteristics on cash holdings to deviate from the degree of impact, and pointed out that a sound corporate governance ideas for SMEs; cash holdings that deviated from the degree of impact on business growth performance to SMEs shows that the cash held by decision-making toward conducive to the direction of the company’s growth, cash decision-making is not a "racking our brains," the decision-making process.Divided into five parts, the first part, the introduction, background and significance of this study, literature review, research ideas, and useing of methods and in this article the main framework are described.The second part is the cash holdings and cash holdings to deviate from the extent of this part of the holding Lee amount of cash and cash holding level of deviation were defined, the selected sample of cash holdings and cash held by the deviation from the descriptive statistics from the intuitively simple to understand cash position currently held by the small and medium-sized listed companies. The third part is the board of directors characteristics and cash holdings level of deviation, which is the empirical part of this article, use the size of the board of directors, the proportion of independent directors, the directors’shareholding ratio and the number of meetings each year the board characteristics is theoretically proved them for cash held by the deviation from the hypothesis, the use of selected samples of empirical research.The fourth part is the cash held by the deviation from the degree of impact on business growth performance, this part is still the first theoretical analysis of research hypotheses, and then conduct an empirical analysis, concluded.The fifth part is the concluding part of this article, the third, four-part empirical study concluded summarized, and small and medium enterprises in the future development of recommendations.The empirical results show:the board size and cash holdings deviate from the degree of negative correlation, not statistically significant; independent director ratio and cash to deviate from the level of significant positive linear correlation; leadership structure and cash holdings deviation from the significant linear relationship; ownership of the Board of Directors and cash held by the first and then drop the inverted U-shaped relationship between the deviation from the other number of meetings The Board meets with the deviation from the negative correlation.In the study of performance, corporate cash holdings to deviate from the greater the degree of impact on the growth performance the greater the conclusion, subsequent samples were grouped study.