Relationship Trading, Internal Control and Corporate Cash Holding
- https://doi.org/10.2991/sshr-17.2018.12How to use a DOI?
- Customer Relationship Trading, Supplier Relationship Trading, Internal Control, Cash Holding.
Being different from the previous research, this paper studies the influence of relationship trading on cash holding and the adjustment function of internal control based on the principal status of relationship trading in market. Results show that customer relationship trading leads to the decrease of corporate cash holding while supplier relationship trading the increase, and that this kind of relationship will change according to different market positions of all parties in trades. Further research demonstrates that internal control has significant but opposite effect on this influence. It has been found that relationship trading is an important measure taken by cooperation in reaction to the instability of external environment and the realization of reinforcing the corporation for a win-win, but the double-edged sword has different economic effects on cash holding. Therefore, establishing a comprehensive and effective internal control system is the requirement of ensuring the scientific management. It could be an essential mechanism to protect the profits of all parties in trading, which displays the important value of internal control of allocating interests.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Zhonggao Lin AU - Ruilan Cao AU - Pei Tang PY - 2017/12 DA - 2017/12 TI - Relationship Trading, Internal Control and Corporate Cash Holding BT - Proceedings of the 2017 International Seminar on Social Science and Humanities Research (SSHR 2017) PB - Atlantis Press SP - 67 EP - 82 SN - 2352-5398 UR - https://doi.org/10.2991/sshr-17.2018.12 DO - https://doi.org/10.2991/sshr-17.2018.12 ID - Lin2017/12 ER -