Study On The Effect Of Listed Agricultural Companies'governance Structure On Cash Holdings In China

Agriculture plays a extremely essential and fundamental role in the process of speeding up to complete the modern construction in china.Therefore,Our country should always pay attention to the “agriculture,rural areas and farmers” work,concern about the development of agriculture and rural areas,attach importance to the interests of farmers;only to help farmers enjoy the benefits,make the relevant policy which can make the farmers be affordable and rich off can fall fine,drop small and implement,so that it can promote the growth of farmers' income,and accelerate the construction of new socialist countryside.In recent years,our country carried out a series of effective measures in the way of agricultural economic's development,economic structure's adjustment and rural economic reform.But there are still some problems,such as the imbalance agricultural products' structure between supply and demand,the weak sustainable growth of farmers' income,the contradiction between small production and big market.China's listed agricultural companies represent the advanced agricultural productive forces,plays a key role in resolving the contradiction between small farmers and big market,and the industrialization of agricultural management.In recent years,the domestic and foreign scholars study on the listed companies' corporate governance structure impact on cash holdings gradually increased.However,There is no consistent conclusion on the impact of the extent and relevance.They agree the opinion that the degree of protection for the rights of company's shareholders will decrease,when the cash holdings increase,but they still not got a consistent result that the company's ownership concentration,managerial ownership,and board characteristics impacts on the cash holdings' analysis.In addition,the domestic and foreign scholars mostly choose the financial data's span of time is relatively small,within four years data,This paper choose China's 42 listed agricultural companies,from 2001 to 2015,a total of 370 groups of panel data as the research sample data,and the sample data is complete.What's more,many domestic and foreign scholars study on the companies' corporate governance structure impact on cash holdings within a single factor,and most of the scholars just do a simple descriptive statistical analysis and multiple regression method to research the company's financial data,even if they use the cross section analysis and construct the panel data to study on cash holdings,they still study on the perspective of the companies' corporate governance structure within a single factor.There were no research that through the selection of listed agricultural companies in China,and use the method of unit root test,cointegration test,selected and construct the panel data regression model to study the governance structure impact on the cash holdings.Based on the above analysis.Firstly,this paper tidy up the domestic and foreign literatures.Then,this paper analysis related concepts,theories,and the present situation.In addition,this paper construct the fixed effect panel data regression model for empirical analysis,we can find that the ownership concentration,the proportion of legal person shareholders,the proportion of management ownership ratio,board size,and board of supervisors scale will increases,when the cash holdings increases;the equity balance degree,the proportion of tradable shares,the proportion of independent directors,and shareholder protection will reduced,when the cash holdings increases.Finally,in order to optimize the corporate governance structure,so that it can strengthen the cash holdings' management,this paper based on the previous research,and put forward the following suggestions: adjustment the proportion of company's top five shareholders,make the major shareholders can mutual restriction and supervision;control the proportion of legal person shareholders,maintain the enthusiasm of tradable shareholders,through the measures of stock and options' appropriate incentives to stimulate the managers' enthusiasm;control the board of directors and supervisors' scale,establish performance appraisal system;through the external agencies recommend independent directors,it can make the independent directors be more objective and fair.If we improve the corporate information disclosure,the minority shareholders can understand the real investment environment and the company's business and financial situation.If we improve the company's legal environment,and increase the penalties for illegal shareholders who damage the interests of small and medium-sized shareholders,it will protect the interests of small and medium-sized shareholders.