CEO organizational identification and firm cash holdings

Artikel

As the decision-makers and implementers of a firm's financial strategy, executives play a critical role in cash holding activities, and their psychological characteristics have a major impact on cash holdings. This paper investigates the association between CEO organizational identification and firm cash holdings. The empirical results show that CEO organizational identification is negatively associated with firm cash holdings, and the negative association is more pronounced when the level of financial development is higher and economic uncertainty is lower. Further analysis reveals that the higher a CEO's organizational identification, the higher the firm's R&D investment and capital expenditure, and high CEO organizational identification can increase the value of firm cash holdings. Overall, our findings supplement the literature on organizational identification and cash holdings, and on the effect of executives' psychological characteristics on corporate financial decision-making.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 14 ; Year: 2021 ; Issue: 2 ; Pages: 183-205 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Management
• Subject: Cash holdings ; CEO organizational identification ; Economic policy uncertainty ; Financial development

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Zhou, Meihua ; Cao, Jian ; Lin, Bin
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2021

Further information

• DOI: doi:10.1016/j.cjar.2021.03.001
• Handle: http://hdl.handle.net/10419/241836
• Last update: 10.03.2025, 11:44 AM CET