Executive Financial Background And Corporate Financial Asset Allocation

With the rapid development of China's market economy,China's industries are facing transformation and upgrading,and the rate of return on financial assets has continued to increase.Non-financial listed companies' investment in financial assets has become a common phenomenon.Financial assets,as one of the objects of corporate investment,come from a variety of factors.From the perspective of the enterprise itself,the most direct factor in the allocation of financial assets by non-financial listed companies is the investment decisions of executives.Executives work out what they think is the best investment plan based on the company's development,market conditions,and their own judgment on the environment.However,due to the limitations of personal cognition,it is impossible to consider issues in all directions.Executives rely more on their own knowledge reserves,work experience and personal physiological perceptions to make decisions.This article is mainly based on the agency theory and upper echelon theory to study the impact of financial background as one of the characteristics of executive background on the financial asset allocation of non-financial listed companies.Take the Shanghai and Shenzhen A-share non-financial listed companies from 2009 to2017 as the research object.On the basis of the main research content of this article,the financial background of senior executives is classified,and comparative research is conducted on companies of different sizes.The result shows:(1)the financial background of senior executives and the allocation of financial assets of companies presented a positive relationship between financial executives had a background role in promoting the allocation of financial assets;(2)Compared with the bank financial background of senior executives,the non-bank financial background of senior executives will have a greater positive impact on the allocation of financial assets.The cognitive ability formed by senior executives' financial experience rather than the ability to obtain resources plays a more important role;(3)Compared with smaller enterprises,in large-scale enterprises,the financial investment plan of seniorexecutives with financial background is more likely to be implemented,so that the financial background of senior executives has a greater positive impact on the allocation of financial assets.(4)The financial background of senior management promotes the optimization of corporate financial asset investment and helps to mitigate the business risks caused by the allocation of financial assets.