An Empirical Research Of Non-financial Stakeholders And Corporate Cash Holdings

In recent years, with the industrial division, globalization and the development of information technology, the traditional competition between enterprises has already evolved into the supply chain and supply chain competition between (or industrial chain and industrial chain), to meet consumer demand as the goal, through innovation, supply mode and the supply chain process, realize the rapid and reflect on the market. In the supply chain suppliers and customers upstream and downstream as the company important non-financial stakeholders, they are to the company’s strategy, management and other aspects have a decisive influence.Therefore, this article is based on data of China’s Shenzhen a-share listed companies from 2006 to 2011, test the influence of concentration of supply chain on cash holding decision. The results showed that (1) With the developed countries, imperfect institutional environment and the economic transition period in our country, the relations between enterprises and the key customer show the negative governance mechanism on the company’s cash holdings based on the motivation of stakeholders. (2) Corporate relationship with key suppliers effects on corporate cash holdings by two channels of mutual influence, when supplier concentration falls below a certain threshold, the relationship between the channels more through stakeholder governance mechanism, the expression is significantly negative relationship, when supplier concentration exceeds a certain threshold, the special investment is very high, the relationship between the two channels through prevention motives, show the significant positive correlation. Then we check whether the relationship between the company’s supply chain network and channels through which influence corporate cash holding level. (3) With different expectations, in enterprise-customer relationship, the enterprises tend to risk bankrupt higher as the customer concentration rises lower cash holdings, this has to do with our country market into a buyer’s market, and is associated with the system environment of western countries. (4) In the region with low marketization process, the customer as the main stakeholders of supervision and management of the enterprise solve cash flow problems of the lower level of cash holdings, relative to the marketization process of the more significant negative relationship. (5) Different from enterprise-customer relationship, the influence of suppliers-business relationship on corporate cash holdings are obvious relative bargaining power of the game, and result at two channels of influence, both in the high or low bankruptcy risk and high or low marketization process, when supplier concentration falls below a certain threshold, the relationship between suppliers-enterprise relationship and cash holdings is negative stakeholders motives, when supplier concentration exceeds a certain threshold, the performance between suppliers-enterprise relationship and cash holdings is based on the motivation of prevention, positive relationship.