중국 민영기업의 이사회 특징과 현금보유 가치-A주 상장기업을 중심으로-

This study analyzed the effect of cash holdings on corporate value of private A-share listed companies in China and provided policy implications. The results of this study showed that the cash holdings of listed private companies in China had a negative significant effect on corporate value, indicating that there exist serious agency problems in Chinese private companies. It was also found that when the board size was larger, the ratio of independent directors was higher and the chairperson of the board simultaneously assumed the position of CEO, the value of cash holdings was significantly higher, while the ownership shares did not have a significant effect on the value of cash holdings. The policy implications of this study are summarized below. First, since there generally exist serious agency problems in listed private firms of China, it is urgent to improve the corporate governance that can efficiently address this issue. Second, strengthening the supervisory functions against the management by increasing the board size to a certain degree is a way of improving corporate values. Third, it is difficult to solve agency problems by increasing the ownership shares of the board. Fourth, securing independence, enhancing professionalism and establishing appropriate compensation systems for independent directors as well as increasing the ratio of independent directors can have a more positive effect on corporate value. Finally, firms employing professional managers should try to establish the systems to solve agency problems, including introduction of incentive systems for managers, improvement of corporate governance, etc.