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The Impact of Social Relationship between CEO and CFO on Cash Holdings in Chinese Listed Firms
Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
- 1 Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
- 2 Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
- 3 Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
- 4 Department of Finance, School of Business, East China University of Science and Technology, Shanghai, China
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Abstract
A company’s cash holdings are closely related to its performance and market capitalization, as well as the decision preference and management mode of managers. Among the factors affecting cash holdings, the social relationship between the most two important executives of a company, CEO and CFO, plays an important role. Accordingly, this paper studies the influence of fellow villagers’ relationship and alumni’s relationship on cash holdings of listed companies, which not only enriches the literature about the impact factors of CEO-CFO social relationship, but also provides practical guidance for cash holding adjustments of listed companies.
KeywordsCEO-CFOSocial RelationshipCash HoldingsCompany Value
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