Executive "Female Boss" And Cash Holdings In Family Business

The phenomenon of large cash and cash equivalents appeared in Western companies in the 1990 s,which attracted the attention of Western scholars.After more than 20 years of development,it has formed a rich theoretical foundation and research results.Cash is a very important current asset in the daily production management of a company.A certain amount of sufficient cash can not only lay a solid foundation for the daily production and operation of the enterprise,but also help the company to prevent future emergencies.In recent years,with the popular combination of economics and management and psychology,there have been many cash holdings studies in the academic world with a new perspective on managerial personality,including managerial gender,professional background,and power characteristics.etc.,achieved certain theoretical and practical significance.Among them,gender is one of the characteristics that often discussed.The financial decision-making of the company with the focus of female executives has become a research hotspot in the academic world.There are certain differences in the academic world as to whether women should have a place in corporate management.Part of the view is that different from the personality characteristics of men,women's participation increases the company's diversity and provides valuable resources for the company.Other scholars believe that although some countries have mandatory requirements for women to participate in management,in the long term,women just be used to “dress up the facade” and will not have any positive impact on the company,even in a certain extent damage the value of the enterprise.Furthermore,little research focusing on family female members' participation in management,and compared to ordinary women they have commonalities and difference.When they move from the housekeeping role to the management role of the commercial stage,what impact they will make on the financial decisions of family businesses? The research on its relationship with cash holdings not only provides a certain literature supplement for the research of female executives,but also provides a reference for the characteristics of the management of female members of family businesses.At present,the research on female family members in China has not reached the stage of maturity,and the research on this content can provide us with some enlightenments.This paper uses a combination of theoretical analysis and empirical analysis to analyze the impact of the situation of executive “Female boss” and cash holdings,as well as changes in the external economic environment,personal characteristics and powers of managers.The results of the study show that:(1)executive “Female boss” will increase the cash holdings of the family business and the value of cash holdings,affirming the important role that women play in corporate governance.(2)The personal characteristics of chair's age,education do not have a significant impact on cash holdings.In terms of power characteristics,when the executive “Female boss” is also CEO,the effect of raising cash holdings is more obvious.(3)The test of the mechanism of action further shows that based on the conservative and cautious characteristics of ordinary women,high moral level,ethical level,and the sense of responsibility and cognition of special women,executive “Female boss” retains certain cash holdings in the external economic environment.Strong and excessive over-investment within the company is particularly prominent.The main contributions of this paper are:(1)Expanding the research on female executives.Many scholars are currently working on the research of female executives,such as the influence of female directors,female CEOs or female CFOs on corporate accounting behavior,financial behavior and overall development.This article cuts in from the more important position of the chair,pays attention to the influence of women as chairperson on corporate financial behavior,enriches the research of women executives and cash holdings.(2)Provide a certain literature supplement for the study of female members of domestic family business participation in management.The existing literature has little research on the participation of female members in the family business,staying in the normative research or case analysis basically,but the empirical research with empirical data is relatively insufficient.The research provides a certain reference for the field,enriching and expanding the research theme.(3)By studying the economic consequences of female members' participation in management,correctly understanding the business activities of women under the leadership of women,and providing advice about rational choice for family business.The research results of this paper show that the participation management of the family business “chairwoman” has a negligible effect on the business activities.They should be recognized by the family business and transform their roles,from the care of family affairs to the stage of the commercial economy.