Research On The Impact Of Financial Shared Service Center On Corporate Cash Holdings

Appropriate cash holdings are an effective guarantee for the normal operation of a company,avoid the company from falling into a liquidity dilemma,and enhance its ability to defend against risks.The company’s cash holdings below a reasonable level will not only affect daily production and operation activities,but also cause the company to fall into financial distress and trigger the risk of default and bankruptcy.The overall cash holdings of domestic listed companies are on the rise year by year.,but excessive cash holdings not only bring opportunity costs and management costs,but also may cause agency conflicts,leading to problems such as on-the-job consumption and over-investment.As an effective financial transformation tool,the financial shared service center has become an effective choice for the centralized cash management of large enterprise groups.After the establishment of the financial shared service center,the cash flow of various departments or subsidiaries will be integrated and redistributed through centralized management of funds.After the collection of funds,a scale advantage will be formed,which will reduce the transaction cost and financing cost of the enterprise in the external capital market.Cash is inseparable from the survival and development of enterprises,and is the key to the restoration of orderly operations in the post-epidemic era.Therefore,this article studies the impact of financial shared service centers on corporate cash holdings,which has important theoretical and practical significance.The article takes the non-financial A-share listed companies in China from 2011 to 2019 as research sample,manually collects and sorts out the time data on the establishment of corporate financial shared service centers,builds a panel regression model based on large sample data for empirical research,and excavated the adjustment effect of industry competition and marketization level on the relationship between the financial shared service center and the level of corporate cash holdings.At the same time,it further analyzes the heterogeneity according to the nature of property rights and studies the impact of corporate cash holdings on corporate value as a financial shared service center.The research results show that after the establishment of the financial shared service center of listed companies,the level of cash holdings has been significantly reduced.Product market competition has a negative regulatory effect on the relationship between the financial shared service center and corporate cash holdings.The level of marketization is in the financial shared service center.The relationship with corporate cash holdings has a positive regulatory effect.Further research found that the financial shared service center reduces the level of cash holdings while increasing the value of the enterprise.Compared with non-state-owned enterprises,state-owned enterprises can reduce the level of corporate cash holdings after establishing a financial shared service center.Therefore,it is proposed that qualified enterprises should actively explore the establishment of a financial shared service center,optimize the financial process of the financial shared service center,and enhance the value of the enterprise.At the same time,the government should continue to optimize the macro governance environment in which the enterprise is located,and provide institutional conditions for optimizing corporate cash management.