Research On The Relationship Between Management Defense,Inefficient Investment And Cash Holding Value

As early as Keynesian period,economists began to pay attention to cash holding behavior,relaxing the perfect hypothesis of Modigliani-miller theorem,and more scholars have continuously enriched and developed theoretical and empirical studies on the company's cash holding and its value.From the existing literature,scholars mainly study the cash holding value of enterprises from the aspects of financing constraints,macroeconomic environment,corporate governance,diversification strategy,and product market competition.Although there are also a few scholars who study the problem of cash holding from agency issues,they mainly focus on agency costs.Few scholars have used managerial defense as a deep-seated reason for the existence of cash holdings in the company,and explored the company's management layer from the perspective of management and defense.Investment decisions are the way to influence the value of cash holdings.This article explores from this perspective and enriches the theoretical research on the value of cash holdings.At the same time,cash as a liquid asset is the blood of the company.The value of cash holding is a sign of success or failure of the company's operations.It has important practical significance for the corporate governance,investment decisions,and financing decisions of listed companies.Based on the theory of agency theory,information asymmetry,financing theory of financing order theory and non-efficiency investment theory,this paper analyzes how the management defense affects the company's cash holding value by combining the characteristics of listed companies in China.An empirical study of the impact of value,in-depth discussion of the factors affecting the value of corporate cash holdings and their impact mechanisms.There are two main aspects of the study.The angles of explanation of cash holdings and their value mainly include principal-agent,financing constraints,and economic environment.This paper mainly studies the managerial defense and cash holding value of managers under agency theory.The contents of his research mainly include two aspects: First,it studies the impact of managers' management defense on the value of corporate cash holdings.The related theoretical factors and other influencing factors are used as control variables to establish a multiple linear regression model.The second is based on the agency theory,studying the relationship between management defense and investment efficiency and cash holding value,and also building a corresponding model to test,and finally put forward that the main reason for the decline in cash holding value of listed companies in China is the management of managers' existence.Defensive motivation and inefficient investment behavior based on this motivation.This article selects the listed companies in Shanghai and Shenzhen from 2013 to 2016,and uses STATA statistical software to conduct empirical analysis of the research contents.The following conclusions are drawn:(1)Managerial defensive degree is positively correlated with non-efficiency investment;(2)Managerial defensive degree is negatively correlated with corporate cash holding value;(3)Non-efficiency investment is negatively correlated with cash holding value(4)Investment efficiency plays a partial intermediary role between management defense and cash holding value.At the end of the article,according to the results of empirical analysis,the corresponding suggestions and suggestions were made.