Research On The Influence Of Board Of Directors Characteristics On Cash Value

Cash is the blood and the most liquid current asset in a company,directly related to the healthy operations and sustainable development of a company.Corporate cash holdings can not meet the demands of its business transactions,preventability and speculativeness,but will also lead to the generation of agency costs.Besides,improper cash management can cause very serious credit crisis to a company.The level of cash holdings affect the value of cash holdings,and the value of cash holdings determines the level of cash holdings.The value of cash holdings is the marginal value of cash value,which is the changes in market value arising from corporate of each one yuan cash holdings.Corporate governance is an important factor affecting the value of corporate cash holdings,and the Board is the core of the company's internal governance.Shareholders accepting the commission,on the one hand can provide advice and recommendations for the company's business decisions,on the other hand can oversight,control and incentives the management,to ensure the realization of maximizing shareholder value.Board of different characteristics in the actual performance of their duties process will produce different effects.First,this thesis reviews the relevant literature about the board characteristics and the value of cash holdings.Second,this paper describes the basic theories.That is the four representative index of the board characteristics,the functions of the board,the concept of the value of cash holdings and its impact factors.Then,the paper analyzes the size of the board,board meetings,board members shareholding ratio,the proportion of independent directors on the value of cash holdings mechanism.Its basis are principal-agent theory,corporate governance theory and resource dependence theory.Finally,this paper selects Chinese Shanghai and Shenzhen a-share listed companies sample data from 2009 to 2013,and uses stata13.1 empirical to analyze the influence of the board characteristics on cash holdings value.The results show that: there is a significantly negative correlation between the board size,the proportion of independent directors and the value of cash holdings;and the number of board meetings,board members shareholding ratio hold no significant impact on cash holding values.According to the results of the empirical analysis in this paper,we put forward policy recommendations to appropriately control the size of the Board,to improve the efficiency and quality of the board meetings,to improve and perfect the board shareholding system and independent director system.