| Cash is regarded as the "blood" of the normal production and operation of the company,which has an important impact on the survival and development of the enterprise.When an enterprise holds excessive cash,it will cause the idleness and waste of resources,and generate unnecessary costs.Compared with the companies listed on the main board,the companies listed on the GEM in the initial stage are relatively short in time and lack of resources.It is a necessary realistic choice for GEM companies to alleviate financing constraints and reduce cash holding level by establishing links with the outside world.As an important form of establishing linkages between enterprises,interlocking directors’ network has become the focus of corporate governance research,and has attracted widespread attention of scholars.However,the scholars lack a systematic understanding of the impact mechanism of interlocking directors’ network on corporate cash holdings.Firstly,this paper combs the related literature at home and abroad,defines the core concepts and expounds the relevant theories;secondly,based on the perspective of debt financing intermediary effect and institutional environment regulation effect,this paper analyzes the relationship between the interlocking directors ’network and cash holding theoretically,and selects the degree centrality and structural hole as the research variables to construct the interlocking directors ’network.The variable relationship among network,debt financing,institutional environment and cash holding,and relevant assumptions are put forward.Next,taking the GEM listed companies in China as the research object,this paper uses stata13.0 to build a regression model and carry out regression analysis through3 276 consecutive data from 2012 to 2018.Finally,the regression results are analyzed and some suggestions are put forward.In this paper,we find that the network centrality and structure hole of interlocking directors are negatively related to cash holding;debt financing ability plays a part of intermediary role between the network centrality and structure hole of interlocking directors ’network and cash holding;in addition,the system environment negatively regulates the relationship between the network centrality and structure hole of interlocking directors and cash holding.The conclusion of this paper hascertain theoretical value and guiding significance for GEM listed companies in China to promote debt financing and reduce cash holding by means of interlocking directors’ network. |
