Impact Analysis Of The Governance Structure To The Cash Holdings From Listed Companies Of The Wholesale And Retail Trade

The cash holdings problem is which every enterprise should face when makingfinancial decisions in the course of business. It affects not only the day-to-day businessof the purchase, production, marketing and other aspects, but also an important role inthe investment and financing activities in the cash flow. A series of measuresimplemented to address this issue from the surface of it, the majority is developed by thecompany’s management. However, they are deep-rooted by the company’s internalgovernance structure characteristics which lead to the result in essence.Compared with Western developed countries, China’s governance structure relatedis mainly confined to the impact analysis on the value or performance of the Company,and most of the exploration of the cash holdings is related to the transformation ofmeasuring model. But the literature about research which links these two aspects is notmuch. Therefore, by taking factors of special economy environment into consideration,this paper make impact analysis of the governance structure to the cash holdings,especially on the basis of the wholesale and retail industry as a key research area.This Paper is broadly divided into five parts. Firstly, there is a brief summary anddescription for the proposition Research, based on the ideas and innovation of the writingof this article. Secondly, study the governance structure and the theoretical content of thecash holdings described and analyzed, paving the way for later analysis. Then make thetheoretical analysis which is enrolled with the features of the listing corporations at thisstage, especially highlighting the shareholding structure, characteristics of the board, thescale of supervisors and managerial ownership. Then, by analyzing the characteristics ofthe wholesale and retail industry at this stage, make assumptions content and collectrelevant data, do correlation analysis and regression analysis using SPSS software onthese samples to find out the differences between the assumptions of the statistical resultswith the proposed analysis. Finally, make some suggestions for improvement of thecorporate governance structure, including improvements in the shareholding structure,optimize the structure of the board and managers incentive and restraint mechanisms toimprove the status of cash holdings.