Research On The Impact Of Internal Control Quality To The Value Of Corporate Cashholdings

Cash as the "blood",on the one hand it can maintain the daily operations of the enterprise,seize the investment opportunities to generate benefits;on the other hand,holding sufficient cash can alleviate the financing pressure and avoid the external market volatility and financial distress.Moreover,the high liquidity of cash assets,not only makes it become easier to be occupied by shareholders and managers,but also makes it very difficult to carry on effective supervision and management.At the same time,the ability of enterprise to allocate and use the cash assets is more directly related to the investments,financial decisions,dividend distribution and outcomes of the policy.Therefore,it is necessary to strengthen cash management.Cash holdings of enterprises tend to hold high,but the efficiency is low.Therefore,how to improve the efficiency of cash holdings becomes a real problem.Based on this,from the possible control mechanism of cash management internal control,The main contents are as follows: Firstly,the internal relations between the two are clarified on the basis of related theories and literatures.Secondly,the use of empirical testing to verify how the internal control of cash holdings have an impact.The differences of ownership properties are considered,and the total sample and sub-samples are used for verification.Based on the behavior performance evaluation,this paper examines the practical effect of cash holdings on firm value,it also examines the effect of cash holding on corporate performance under different internal control levels.This paper draws the following conclusion: high quality of internal control can significantly improve the value of corporate cash holdings,investors of state-owned enterprises hold cash given a lower price,it is also obvious to find that the effectiveness of internal control on the enterprise value of cash holdings play an important role in the state-owned enterprises,when the internal control quality is high,holding cash is more likely to improve the performance.This study enriches the related literature,also provides managers,investors,regulators and other stakeholders with scientific decision or evaluation on a new perspective of thinking and suggestions.