Influence Of Firms’ Internationalization Features On Firms’ Cash Holding Decisions

With the continuous development of economic globalization,the internationalization of enterprises has also became an important direction for the economic development of various countries.How to seize the opportunities of the international market and bring benefits to home country enterprises is the fundamental goal of the company’s international strategic shift.Driven by the multiple international development strategies of “Going Global” and “One Belt,One Road”,the internationalization process of Chinese enterprises has accelerated in recent years.However,the internationalization of companies will lead to a series of economic consequences.From the perspective of the external economic environment,the implementation of the company’s international business strategy will affect its strategic layout in the domestic and foreign markets,thereby changing its production and operation scale in the domestic and foreign markets,and then affecting the external economic market structure;From the perspective of internal corporate governance,the implementation of the company’s international business strategy will have a series of chain reactions to the internal management of the company.Among these internal management processes,cash holding decisions have a particularly important impact on companies.Cash is like the blood of a company.Cash holding is an important financial management activity for financial operations and management.Cash holdings are not only about the daily operations and trading activities of the company,but also have an important impact on other financial decisions.Analysis of corporate financial decision-making behavior and its influencing factors not only plays an important role in business management at the micro level,but also plays an important role in building China’s financial security system at the macro level.Therefore,firstly,this paper summarizes the domestic and foreign literature related to enterprise internationalization and cash holding decision-making.Secondly,the impact of enterprise internationalization on cash holding decisions is analyzed in depth.At present,the academic community has not yet unified and generalized it.Therefore,this paper will study the impact of the internationalization characteristics of enterprises on cash holding decisions from the following two aspects.On the one hand,from the perspective of the characteristics of internationalization of enterprise operation,this paper analyses the possible impact of internationalization on cash holding decision-making.On the other hand,from the perspective of internationalization of enterprise personnel,it studies the impact of internationalization on cash holding decision-making.Based on the theoretical construction and research hypothesis,using the financial data of China’s A-share listed companies,empirical verification on the characteristics of the company’s international operation characteristics and the international characteristics of the company’s personnel,this paper studies whether the internationalization background will have an impact on cash holding decisions,and observes the differences in the degree of impact.Through theoretical analysis and empirical test,the paper draws the following conclusions.The characteristics of corporate internationalization will have an impact on cash holding decisions.The specific performance is that,on the one hand,the internationalization characteristics of business operations will have a positive impact on the level of cash holding;on the other hand,the internationalization of enterprise talents will have a positive impact on cash holding.Through further research this paper find that,among the characteristics of international talents,there are significant differences in the influence of the international background of CEO,CFO and chairman on the level of cash holdings.Furthermore,the growth and degree of equity diversification of corporate is also an important factor affecting the internationalization characteristics of enterprises on the level of cash holding.