The Survey Of Air Pollution,Financial Constraints And Corporate Cash Holdings

Based on the mediating effect model and the data of A-share listed companies in Shanghai and Shenzhen in 2013-2019,this paper examines the impact of air pollution on the level of corporate cash holdings.The results of empirical analysis show that:air pollution enhances corporate cash holdings,financial constraints play a mediating role in the relationship between air pollution and corporate cash holdings.In further analysis,a series of heterogeneity test was conducted according to whether a company is a heavily polluting company,the nature of property rights,and the level of financial development in the region.The results show that regardless of whether the company is a heavily polluting company,and whether it located in a region with better financial development,the direct impact of air pollution on the company’s cash holdings is significant,and the intermediary effect of financing constraints exist in non-heavy polluting companies and companies located in an area with poor financial development.In terms of the nature of property rights,considering that those two types of enterprises face different policy environments,compared with nonstate-owned ones,the impact of air pollution on business holdings mainly exists in state-owned enterprises.Finally,the article conducts an empirical analysis from a perspective of economic consequences of holding cash.On the one hand,air pollution can directly damage corporate value.On the other hand,air pollution weakens the effect of corporate cash holdings on the value of enterprises.The article studies the impact of air pollution on corporate cash holdings and enriches the research content in the field of environmental accounting.Moreover,it also inspires companies to fully consider the uncertain factors caused by the external environment when making cash decisions,and avoid falling into the dilemma of breaking the capital chain due to environmental problems.At the same time,the conclusion that the air environment has a negative impact on corporate value may inspire enterprises consciously assume environmental governance responsibility.