The Influence Of Executive Background On Cash Holding

It It is an important financial and investment decision for an enterprise to choose to hold cash as its working capital,which has long been hot and discussed by theorists and practitioners.Because of the information asymmetry and agency problems,enterprises are likely to increase their cash holdings by avoiding financial difficulties or seizing investment opportunities.According to wind data statistics,the cash holding level is on the rise in both developed countries and emerging markets.T he research of domestic scholars shows that this phenomenon is more obvious in Chinese enterprises,and which factors will affect the cash holding behavior of listed state-owned mixed reform enterprises has become the focus of scholars.At present,many scholars have discussed the influence of senior executives' different backgrounds on cash holding from the perspectives of age,gender and education background in their personal characteristics,and explored the influence on cash holding from the perspective of promoting the in-depth mixed reform of state-owned enterprises in China,It reveals the economic consequences of the ownership structure after the company's cash holding decision,and enriches the influencing factors of the company's cash holding level.Cash holding strategy is related to the business strategy and long-term development of an enterprise,and it is also an important way to maximize the value of an enterprise.Therefore,it is of great practical significance to deepen the research on the influence of different background characteristics of senior executives on the cash holding level of an enterprise.In this paper,178 listed companies in 2014-2018 are taken as samples,and regression analysis is used to conduct empirical research on the relationship between executive background and corporate cash holding.At the same time,the degree of mixed reform is used to test its regulatory effect.Considering the influence of in dustry factors and time factors,we get more objective conclusions.The empirical analysis part of this paper includes the selection of variables(main variables,control variables),economic model setting,model testing,regression analysis and robustness testing.The results show that:(1)there is a significant positive correlation between senior executives' age and cash holding;(2)there is a significant positive correlation between senior executives' education level and cash holding;(3)there is a positive correlation between the proportion of senior executives' financial background owned by enterprises and cash holding.(4)The proportion of enterprises with overseas background is positively correlated with cash holding.(5)The degree of mixed restructuring has a significant positive correlation with the proportion of executives with overseas background characteristics,but not with other executivesAccording to the pilot enterprises of mixed ownership reform,this paper draws the conclusion of executives' characteristics and cash holding,which can provide a reference for the allocation of executives in mixed ownership enterprises.However,there are still some deficiencies in this paper.China's mixed reform is still in the development stage,and there are few samples available for research,with a short period of time.The sample size of this paper is mainly the mixed reform of state-owned enterprises,that is,the introduction of private enterprises as shareholders to participate in the operation of state-owned enterprises,so there is a lack of research samples of mixed reform enterprises in the reverse way.In addition,the current level of mixed reform may not be in-depth,private capital into state-owned enterprises is still in the exploratory stage,which will also affect the depth of research.Therefore,it is necessary to further explore the relationship between executive characteristics and cash holdings with the deepening of mixed reform.In the future,with the deepening of the mixed reform,we need to accumulate samples,distinguish the forms of mixed reform,and study the influence of senior managers' background on cash holdings,so as to provide reliable reference for the classified reform of state-owned enterprises.