1.School of Accounting, Dongbei University of Finance and Economics, Dalian 116025, China; 2.China Internal Control Research Center, Dongbei University of Finance and Economics, Dalian 116025, China
Abstract Based on the data of A-share stock markets of Shanghai and Shenzhen from 2012 to 2017, combined with CFO financial executive ability, this paper examines the impact of corporate strategic deviation on corporate cash holdings. The results show that corporate strategy deviation is positively correlated with corporate cash holdings, the more corporate strategy deviates from industry conventional strategy, the higher corporate cash holdings; CFO financial executive ability can deviate from corporate strategy and corporate cash holdings. The correlation between levels plays a weakening role. The study finds that corporate strategic deviation in non-state-owned enterprises has a more significant impact on corporate cash holdings. Study shows that the corporate strategic deviation is an important factor in affecting the corporate cash holdings, and provides an important reference for the cash holding policy making.
2020, Vol. 37 
