Research On Board Characteristics And Competitive Effect Of Cash Holdings

Cash is the most liquid asset in a company.It has universal acceptability and can be used to invest,buy goods,service or repay debts immediately and effectively.In recent YEARs,compared with the traditional development,the process of enterprise development has been shortened a lot.Fast and accurate have become the characteristics of the development in the business era.The rapid development and expansion of enterprises can not be separated from the support of large funds.For managers,how to implement and implement the management principles of moderate total cash,timely adjustment and security is an extremely important practical question.Question.Based on the theoretical summary of cash holdings,principal-agent relationship is one of the main factors affecting cash holdings,which directly affects managers'decision-making on cash holdings.Therefore,corporate governance plays an important role in explaining managers'behavior and results of cash holdings.Cash holding decision is an important financial decision of an enterprise.Since Opler(1999)carried out empirical research on the factors affecting cash holding,scholars at home and abroad have studied this issue from various angles,among which corporate governance is an important research direction.After the outbreak of the global financial crisis,corporate cash holdings have further improved.Therefore,it is of practical significance to study the characteristics of the board of directors influencing the cash holding of enterprises and put forward policy recommendations to ensure that the cash holding of listed companies remains within a reasonable range.Based on the research results of Fresard(2010)and Harford(2008),this paper takes all A-share listed companies in China from 2011 to 2017 as the research object,uses local data to verify the cash holding status of Listed Companies in China under the circumstances of China,and proceeds from information asymmetry theory,trade-off theory,financing order theory,predation theory,principal-agent theory and corporate governance theory.The theory describes the characteristics of the board of directors from four aspects:the size of the board of directors(the size of the board),the diligence of the board of directors(the number of board meetings),the independence of the board of directors(the proportion of independent directors,the concurrent appointment of the chairman and general manager),and the incentive to directors(the salary of directors).It examines that the characteristics of the board of directors produce competitive effects on cash holdings by influencing cash hold The impact is to explore whether improving the characteristics of the board of directors can enhance the competitiveness of the company's products and gain more market share when the characteristics of the board of directors and the competitive effect of cash holdings and cash holdings as intermediary variables.After verification and analysis,the following conclusions are drawn:the increase of cash holdings has a significant effect on maintaining the competitive advantage of enterprise products;the proportion of board shares and independent directors is positively correlated with the test of intermediary effect of cash holdings.The higher the proportion of board shares,the higher the proportion of independent directors,the higher the cash holdings,and then the competition of cash holdings.The more significant the effect is,the size of the board of directors is negatively correlated with the test of the intermediary effect of cash holding competition,while the number of board meetings has not passed the test of intermediary effect,and the concurrent chairman and general manager has no significant correlation with cash holding.