Environmental Uncertainty,Management Power And Cash Holdings

In our country,the cash issue is the fundamental issue of whether the enterprise can develop well.Therefore,to ensure that the company's financial decisions,especially cash decisions are crucial.However,due to the immature development of the external capital market and the imperfect internal corporate governance mechanism,the agency problem is ubiquitous.The inefficient allocation of cash resources abounds,such as on-the-job consumption problems,the encroachment of funds,and inefficient investment.At present,our country is in a special institutional environment of transition economy.Compared with the past,the power of management is strengthened.Management ignores the internal governance system and even uses power Intervention regulation.So,based on the special reality of our country,this paper will examine the following two questions: Is there any correlation between management power and cash holding of listed companies? And the performance of the cash holdings of value? In addition,in recent years,China has also issued a series of measures to stimulate the macroeconomic,to bring greater uncertainty to the business environment impact,so this article Finally,on the background of environmental uncertainty,we will explore the managerial power and cash holdings relationship under the influence of environmental uncertainty.Based on the sample size of China's A-share listed companies(excluding financials)from 2012 to 2015,this paper explores whether there is a correlation between management power and cash holdings.What is the result of the impact? The study found that(1)The management power and cash holding level have a positive correlation;(2)the increase of the company's cash holding level is related to the size of management power,and thus the increased cash holding level will damage the company's value Leading to negative cash holdings.In addition,further studies have found that the above effects are different under the influence of different environmental uncertainties and concluded that(3)under the same conditions of other companies,if the company is in a lower environmental uncertainty,management The positive relationship between power and cash holdings will be suppressed,and thenegative impact of management power on the value of cash holdings will be weakened.This paper combines micro-level management power with macro-environmental uncertainty,examines cash holding from both internal and external perspectives,expands the scope of research,and enriches relevant literature,which has certain academic significance.The conclusions of this dissertation can provide suggestions and support for China's external governance mechanism.It can provide suggestions for improving the internal governance mechanism of the company and effectively controlling the abuse of management power.It can also actively promote the steady development of related intermediary organizations and the coordination of marketization process.,also has certain practical significance.