Research On The Influence Of Ceo’s Financial Background On Corporate Financial Decision

In recent years,more and more financial people have joined in the ranks of CEO and become CEO of the company.As a core executive,CEO plays a decisive role in business decision-making,determines the development strategy and direction of the enterprise,makes financial decision-making behavior in line with the objectives of the enterprise,and guides,manages and dominates the employees under his leadership.He is the actual manager and final decision-maker of the company.Through the company’s decision-making system,CEO transforms his own cognitive concept into various financial decisions in actual operation.However,the difference of CEO’s individual characteristics will result in the difference of values and behavior patterns,and then affect his financial decision-making behavior and effect.This is also the reason and significance for many scholars to discuss CEO’s individual characteristics and corporate governance.This paper first combs the literature and theoretical basis related to the financial experience and financial decision-making of senior executives,and sums up the financial learning or working experience of "financial person" through mechanism analysis,so that it forms unique characteristics of financial person,such as financial thinking,external resource advantage and optimistic deviation.Then,it discusses the mechanism of the influence of CEO’s Financial Personality on four financial decisions: investment decision,financing decision,distribution decision and cash flow management.And use regression analysis,from the investment decision-making,financing decision-making,distribution decision-making and cash flow management four aspects of wholesale and retail CEO financial background on the impact of financial decision-making mechanism is analyzed and verified.Finally,this paper takes the typical retail enterprise " D Company " as an example,uses case study and comparative analysis method to study its financial decision-making,and discusses the influence path and effect of CEO’s Financial Personality on D Company’s financial decision-making from the perspective of CEO’s financial background.The results show that CEOs with financial background have a great influence on the daily operation and growth of an enterprise.Their financial thinking,external resource advantages and optimistic and biased characteristics of financiers make them tend to hold less cash and more liabilities,more long-term asset investment and less dividend distribution.They pay more attention to the innovation investment of stable projects,which is related to the development of enterprises The key stage can make the most favorable strategic decision for the enterprise,and is more capable of using financial relations to raise external funds when the enterprise has capital demand,which has a positive impact on the growth and operation of the enterprise.Through the combination of theory,demonstration and case study,this paper studies the financial decision-making effect of CEO with different background characteristics,and leads a new research direction for corporate governance.