Macroeconomic Environment,Accounting Information Quality And Cash Holdings Competition Effect

In recent years,the problem of cash holdings has always been the focus of theoretical and practical circles.On one hand,companies pay more attention to the important rule that cash is the king.They not only improve their own understanding of the importance of cash holdings,but also greatly strengthen the efforts to the operation,supervision and management of cash assets.On the other hand,in academic,a large number of scholars have doing a profound discussion and research from the perspective of cash holdings,mainly including the motives of cash holdings,the influence factors of cash holdings and the economic consequences of cash holdings.About the economic consequences of cash holdings,it has formed two different views of the high value of cash holdings and the low value of cash holdings in two aspects which are the information asymmetry theory and the principal-agent theory.For this academic disagreement,some scholars have researched the competitive effect of cash holdings,based on industrial organization theory and related financial theory knowledge.But most articles have been studied from the angle of national policy,industry characteristic and company's own characteristic so far.There are few articles researching how the macroeconomic environment and the quality of accounting information affect the cash holding competition effect,which provides an opportunity for the research of this paper.In view of this,this paper,which using the financial data of all the listed companies in 2007-2016,firstly verifies that cash holdings can ultimately increase the competitive advantage of enterprises by means of investment activity intermediary and carries out further research on the basis of this conclusion,based on the macroeconomic environment and the accounting information quality.The main findings are as follows:(1)Compared with the macroeconomic expansion or the upward period,the product competition effect of cash holdings through the capital investment medium is more remarkable in the economic recession or down period,and the strengthening effect is more significant in private enterprises;(2)High-quality accounting information can strengthen the product competition effect of cash holding through the medium of capital investment,and the strengthening effect is especially notable in the enterprises with high agency cost;(3)In the period of economic contraction or downturn,improving the quality of accounting information can improve the product competition effect of cash holdings through the capital investment intermediary;and the strengthening role is more prominent in the higher financing constraints of the company.According to the conclusions of this paper,we can have the following revelations: Firstly,cash holdings are the most liquid asset,but also the least profitable asset.Enterprises must pay attention to the role of cash holdings to the enterprises,and should weigh the cash holding decisions on the benefits and costs,especially improving the efficiency of cash using.Secondly,enterprises should always pay attention to the external macroeconomic changes,and make full use of their own advantages to make up for the shortcomings and deficiencies.They should formulate reasonable enterprise development strategy and policy to deal with the adverse effects of economic shocks effectively,and ultimately maintain the stability of the overall development of the enterprise.Thirdly,as one of the important tools to mitigate information asymmetry,the improvement of accounting information quality will certainly help the implementation of corporate management and long-term planning.Performance in the cash holding decisions,the construction of the accounting information quality can reduce the managers' grasping and wasting of the cash assets,and also can make the cash used in the investment projects which can increase the value of the enterprise really to give full play to its competition effect.