Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2...Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2004 to 2016,we examine the relationship between board faultlines and the value of cash holdings.The empirical results indicate that board faultlines have a significant inhibitory effect on cash holding value.This inhibitory effect is stronger for board faultlines resulting from deep-level attributes.Furthermore,the inhibitory effect of board faultlines is stronger in state-owned enterprises(SOEs)than in non-SOEs.As an important governance mechanism,management shareholdings can reduce agency costs and mitigate the negative impact of board fissures on cash holdings.Overall,we enrich the literature on the economic consequences of board faultlines and their influence on cash holding value.We also offer companies practical suggestions for improving the supervisory mechanism of their board of directors.展开更多
The bullwhip effect is w idely found in business and exerts adverse effects on business activities.To investigate the influence of the bullwhip effect on firm s'performance and their responses,this study proposed ...The bullwhip effect is w idely found in business and exerts adverse effects on business activities.To investigate the influence of the bullwhip effect on firm s'performance and their responses,this study proposed an environment-behavior-performance analysis fram ework and offered a new perspective for studying the bullwhip effect.Using data collected from 1,734 listed manufacturers in China from 2002 to 2017,we adopted regression models to test the proposed m odel and conducted a series of robustness tests.We find that the bullwhip effect is positively related to operating risk,inventory,and cash holdings,and the moderate levels of inventory and cash are negatively associated with operating risk.Specifically,inventory and cash play different roles and work together to alleviate operating risk induced by the bullwhip effect.However,excess resource holdings are positively associated with operating risk.Therefore,firm swith different levels of resources should hold suitable levels of inventory,cash,or both as contingent responses to the bullwhip effect.展开更多
基金the financial support of the National Natural Science Foundation of China(71872196,71402198)the National Social Science Foundation of China(19ZDA098)+2 种基金the MOE Project of Humanities and Social Sciences of China(19YJA790032)the Beijing Social Foundation of China(15JGC176)the support of the Program for Innovation Research of the Central University of Finance and Economics and the Graduate Student Research Grant awarded by the Graduate School of the Central University of Finance and Economics(20182Y005)
文摘Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2004 to 2016,we examine the relationship between board faultlines and the value of cash holdings.The empirical results indicate that board faultlines have a significant inhibitory effect on cash holding value.This inhibitory effect is stronger for board faultlines resulting from deep-level attributes.Furthermore,the inhibitory effect of board faultlines is stronger in state-owned enterprises(SOEs)than in non-SOEs.As an important governance mechanism,management shareholdings can reduce agency costs and mitigate the negative impact of board fissures on cash holdings.Overall,we enrich the literature on the economic consequences of board faultlines and their influence on cash holding value.We also offer companies practical suggestions for improving the supervisory mechanism of their board of directors.
基金the National Key R&D Program of China,under grant No.2019YFB1404901the National Natural Science Foundation of China(NSFC),under Grants No.71821002,No.72091214 and No.71602171.
文摘The bullwhip effect is w idely found in business and exerts adverse effects on business activities.To investigate the influence of the bullwhip effect on firm s'performance and their responses,this study proposed an environment-behavior-performance analysis fram ework and offered a new perspective for studying the bullwhip effect.Using data collected from 1,734 listed manufacturers in China from 2002 to 2017,we adopted regression models to test the proposed m odel and conducted a series of robustness tests.We find that the bullwhip effect is positively related to operating risk,inventory,and cash holdings,and the moderate levels of inventory and cash are negatively associated with operating risk.Specifically,inventory and cash play different roles and work together to alleviate operating risk induced by the bullwhip effect.However,excess resource holdings are positively associated with operating risk.Therefore,firm swith different levels of resources should hold suitable levels of inventory,cash,or both as contingent responses to the bullwhip effect.
