Internal Control,Financing Constraints And Cash Holdings

Cash has always been a hot topic in the theoretical field.Cash plays an irreplaceable role as an important part of the assets structure of an enterprise.The cash flow of the enterprise is just as blood generally supports the normal operation of the enterprise.Therefore,scholars both at home and abroad have paid much attention to the problem of cash holding in enterprises,and have drawn many valuable research conclusions.The research of this paper is also based on these conclusions.At present,research has shown that internal control,as an internal supervision and restriction mechanism within an enterprise,can have a direct effect on the business efficiency,asset security and information transparency,and the internal control has a certain inhibitory effect on the agency cost so that enterprises hold more cash to be effective.Operating investment activities.Theoretically speaking,the relationship between internal control and cash holdings is positively correlated.Internal control is from the perspective of corporate governance in the enterprise to analyze the relationship with the amount of cash holdings.From the outside of the enterprise,because of the more serious information asymmetry in China's capital market,the problem of financing constraints in our country is more prominent,and its impact on the amount of cash holdings of enterprises can not be underestimated.This paper adopts the method of combining normative research and empirical research.Taking China listed A shares as a sample,this paper collects and collects the financial data and market data of 2012~2016,including internal control indicators,financing constraints related indicators and enterprise cash holdings,and creates the corresponding model for these data.On the basis of the relationship between internal control and cash holdings,the relationship between financial constraints and cash holdings,the relationship between financial constraints and cash holdings is carried out.On this basis,the enterprises are classified according to the degree of financing constraints,and the relationship between internal control and cash holding capacity will be changed and the relationship between the internal control and the cash holding capacity will change.The present situation of China is put forward and the corresponding policy suggestions are put forward.The study found that:(1)the improvement of the internal control quality can improve the cash holdings of enterprises;(2)the higher the financing constraints,the higher the cash holdings of the enterprises;(3)the positive relationship between the internal control quality and the cash holdings is more significant;the company with higher financing constraints is more significant;the company with lower financing constraints is more significant.The relationship between internal control quality and cash holdings will not change significantly.The innovation of this paper is to combine the theory of agency and the theory of financing constraints to study the changes in the relationship between internal control and cash holdings under different financing constraints.It not only combines the theory of different explanations of cash holdings,but also enriches the theory of cash holding and puts forward the corresponding empirical evidence.