Study On The Influence Of National Culture And Corporate Cash Holdings

Cash as the " blood" of enterprises,cash holding is also one of the most important financial decisions of enterprises,and determining the reasonable level of cash holding is related to the survival,competition and long-term development of enterprises.Since the subprime crisis in2008,the concept of " cash is king" has been highly praised by managers and investors.As a micro-economic subject,the cash holding behavior of enterprises is influenced not only by the company level(company characteristics,corporate governance factors),but also by the national level(national culture and other macro-environment).The manager is the direct person who makes the decision on the cash holdings of the enterprise.His behavior is not only influenced by objective factors,but also influenced by some subjective factors.However,by reviewing and summarizing the previous studies on the influencing factors of corporate cash holdings by scholars at home and abroad,we find that most of the studies are analyzed from the objective factors,and less consideration is given to the impact of subjective factors on managers' financial decision-making on cash holdings.On the basis of reviewing and sorting out the relevant research literature at home and abroad,and drawing on the existing research results,this paper mainly analyzes the factors influencing the cash holdings of the company from the aspects of national culture.On this basis,taking manufacturing listed companies as the research object,this paper selects the manufacturing listed companies from 31 countries from 2006 to 2015 as the sample,and uses the empirical analysis method to analyze and verify whether the national culture affects the cash holdings of manufacturing listed companies.the results show that: power distance,uncertainty avoidance,masculinity,long-term orientation and indulgence dimensions are positively related to the cash holdings of enterprises;Individualism is negatively related to corporate cash holdings.Finally,the conclusion and prospect are summarized.