The Impact Of Managers' Military Experience On Corporate Cash Holdings

As a major problem of corporate cash management,cash holding has been a hot topic in the theoretical and practical research fields.As a main decision maker of corporate cash holdings,whether the cash holding behavior of managers with military experience will be different from other managers is a question worth exploring.The article make use of A-share listed enterprises data in Shanghai and Shenzhen in 2012 to 2018,and examines the impact of manager military experience on corporate cash holdings based on a fixed-effect model.This article identifies the effect of executives military experience on corporate cash holdings,and proposes and confirms three research hypotheses based on this:first,executive experience in the military has a positive impact on corporate cash holdings;second,The nature of state-owned enterprises will weaken the positive impact of the experience of managers in the military on corporate cash holdings.Third,the size of the company will weaken the positive impact of the experience of managers in the military on corporate cash holdings.The results of the transmission path test of managers experience influencing corporate cash holdings show that managers with military experience have improved corporate cash holdings by improving the business innovation and choosing offensive strategies.The conclusion of the paper not only reveals the positive impact of managers military experience on corporate cash holdings,but also reveals the adjustment impact of the nature of corporate property rights and company size on the relationship between managers military experience and cash holdings and mediating effects of business innovation and corporate strategy choice.This conclusion is helpful to understand the impact of the personal experience of managers on the internal governance of the corporate,expand the theoretical model system of culture and finance in theory,and it has important implications for optimizing the cash management of corporate in practice.In the process of appointing managers,the company will control the company's own conditions to enable selected managers to carry out more effective cash management,which is beneficial to the long-term development of the company.