| Cash is the most liquid asset of a company,and it is the guarantee for the normal operation of the company and the flexible response to unexpected events.More or less cash held by a company directly affects the survival and development of the company.Excessive cash held by the company will increase the cost of cash holdings,miss opportunities for good investment and reduce the use value of cash;insufficient cash held by the company will increase the financial situation of the company.The possibility of risk,and the normal operation of the company will also be affected.Therefore,companies must formulate a reasonable level of cash holdings in line with their own development under the guidance of the company’s strategy based on their market positioning.The level of cash holdings has always been a hot topic in academic research.Some scholars have conducted detailed research on both the macro and micro levels.The study points out that the level of cash holdings,as an important measure of the internal resource allocation of companies,will be affected by many factors.Under the influence of different factors,companies will show different cash holdings’ tendencies,or increase cash holdings,or reduce cash holdings.In short,companies will choose a cash holding policy suitable for their own survival and development according to their own conditions,so as to ensure a relatively suitable level of cash holdings and achieve a reasonable allocation of corporate resources.Starting from the theoretical basis of upper echelons theory,stakeholder theory and stewardship theory,this thesis selects 22,506 data samples of A-share listed companies in my country from 2010 to 2018 for multiple regression,and uses normative research method and empirical analysis to study the relationship between the social network of executives and the level of cash holdings,the moderating effect of the operating risks faced by the company and the chairman’s existing tenure on the relationship between the social network of executives and the level of cash holdings.In the further analysis,this thesis also examines the influence of different network subjects of the social network of executives on the level of cash holdings,and also explores the relationship between the social network of executives and the level of cash holdings for different property rights,asset size and corporate age.According to the empirical analysis,the main conclusions are as follows:（1）The social network of executives is significantly negatively correlated with the level of cash holdings;（2）Operational risk significantly weakens the negative relationship between the social network of executives and the level of cash holdings;（3）The current tenure of the chairman significantly strengthens the negative relationship between the social network of executives and the level of cash holdings;（4）Compared with the social network of the general manager,the relationship between the social network of the chairman and the level of cash holdings is significantly strengthened;（5）For private companies,small-scale companies,and growth-stage companies,the negative correlation between the social network of executives and the level of cash holdings is more significant.In addition,this thesis examines the mechanism by which the social network of executives affects the level of cash holdings.The thesis finds that: the social network of executives reduces the level of cash holdings by alleviating the preventive motivation and the agency motivation of cash holdings.The innovation of this thesis is mainly reflected in the following aspects: First,this thesis provides a new perspective for the study of the factors affecting the level of cash holdings.This thesis is based on the informal institutional perspective of the social network of executives and examines the relationship between the social network of executives and the level of cash holdings.This is a useful supplement to the research on the factors affecting the level of cash holdings.Second,this thesis collects the data of the social network of executives manually,and the repetition rate is low.Finally,this thesis analyzes the path of the social network of executives affecting the level of cash holdings from two aspects,and proposes“the social network of executives-alleviating financing constraints-weakening the preventive motivation of cash holdings-reducing the level of cash holdings” and “the social network of executives-relieving agency motivation-reducing the level of cash holdings”.The possible research contributions of this thesis are as follows: First,it provides a reference for Chinese enterprises to choose senior management and prevent cash flow crisis.The smaller the scale and the younger the age,the worse the ability to resist risks,and the company should choose senior management with a prudent style.Conversely,the larger the scale and the older the company,the stronger the ability to resist risks,and the company can try to choose senior management with a radical style.Second,it also has important implications for the government to optimize the financing environment and improve related policies.The government should create a fairer and freer investment and financing environment for small and medium-sized enterprises,and give full play to the role of the market mechanism in regulating the level of cash holdings. |
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