Corporate Strategy,Management Power And The Value Of Cash Holdings

Cash is very important for enterprises,which is directly related to the rise and fall of enterprises.However,since the last century,the value of cash holdings has been trapped by agency problems,information asymmetry and other factors have been frequently damaged.It is still the focus of research by many scholars.Enterprise strategy is the core element of the company's long-term development.However,at present,there is a lack of research on the impact of enterprise strategy on the value of cash holdings,and existing studies have not formed a unified conclusion.Investigate the impact of offensive business strategy and defensive business strategy on the value of cash holdings,and explore the regulatory role of management power on the relationship between business strategy and cash holdings value.The company data of the pharmaceutical manufacturing industry under the 2012 industry classification of the CSRC in 2012-2018 was selected as a sample,and a total of 700 sample data of 140 companies over a five-year span were screened for empirical analysis.The study found that defensive corporate strategies increase the value of corporate cash holdings: analytical corporate strategies and offensive corporate strategies reduce the value of corporate cash holdings and the impact of offensive corporate strategies is more significant;the greater the power of management,the corporate cash holdings The lower the value,the management power will enhance the negative relationship between the offensive enterprise and the value of cash holdings.The research conclusion can provide a theoretical reference for pharmaceutical manufacturing enterprises to make reasonable financial decisions,improve cash utilization and its value.The innovation of this article is reflected in the following two aspects:(1)Taking the medical equipment manufacturing enterprises as a sample,the relationship between corporate strategy,management power and cash holding value in this industry is studied.Existing research results have reached a unified conclusion on the impact of corporate strategy on the value of cash holdings,and related studies have used industry-wide samples to study the impact of corporate strategy on the value of cash holdings,but lacked the support of data from a specific industry To conduct research on the impact of corporate strategy on the value of cash holdings.(2)Examine the regulatory role of management power on the relationship between corporate strategy and cash holding value.In the past,scholars have mostly studied the relationship between corporate strategy and cash holding value or the impact of financing constraints on cash holding value.At the same time,they have verified the impact of management power as an independent variable on corporate cash holding value,but few scholars have managed Layer power is used as an adjustment variable to verify whether management power has an adjustment effect on the relationship between corporate strategy and corporate cash holding value.In summary,this article innovatively uses management power as a moderating variable to verify the impact of corporate strategy on corporate cash holding value.