The Effects Of Enterprise Psychological Capital On Enterprise Performance

Owing to the industry level entry barriers,technological supremacy and government regulations,business academics and practitioners had been operated in the belief that sustained competitive advantage could accrue from economic capital,human capital and social capital.However,technological change and diffusion,rapid innovation,and deregulation have eroded these widely capital.In today’s environment,the four positive psychological states of confidence,hope,resilience and optimism—collectively defined as “psychological capital”—has become a key success factor for sustained organizational performance.Enterprise Psychological Capital(PC)was defined as the enterprise’s level of positive psychological states: enterprise confidence,enterprise hope,enterprise resilience and enterprise optimism.Although there have been recent theoretical advances in what is increasingly being recognized as Enterprise Psychological Capital(EPC),research testing the impact on organization-level performance and possible mediating processes has not received attention.To help address this need,this study combined Psychological Capital Theory with Dynamic Capital Structure Theory and Behavioral Financial Theory,and proposed a theoretical framework of Enterprise psychological capital(EPC for abbreviation)and cash holding affected enterprise performance.Based on methods of text analysis and statistical analysis,this study choosing 904 Hong Kong listed enterprises in China during 2012-2014 as a study sample,empirically studied the influence of EPC,cash holding and their interaction on the corporate performance.The result showed that(1)EPC have an positive impact on the corporate performance;(2)EPC is dynamic and could be developed to improve corporate financial flexibility;(3)the relationship between enterprise confidence and corporate performance is an inverted U-shaped(4)The cash holding acts as a mediation role in the relationship between EPC and enterprise performance,moreover cash holding is also found to mediate the relationship between enterprise confidence and enterprise performance.