The Influence Of Ultimate Ownership Structure And Uncertainty On The Cash Holding Strategy Of A-share Listed Companies In China

The cash holding strategy of the enterprise is the most important part of the company's financial decision,which is of great strategic significance to the continuous management and healthy development of the company.The Trade-Off Theory believes that enterprises usually reserve a certain amount of cash to cover all possible situations,but the Pecking Order Theory and Agency Theory thinks that if the high level of corporate cash holdings will reduce the enterprise the fund use efficiency,have an adverse impact on profitability,and the company's internal governance level is low,may increase the risk management or controlling shareholders embezzlement and abuse of cash.Many scholars at home and abroad have discussed the agency problem that the ultimate control shareholders infringe on the interests of the outside and the small and medium shareholders,which is the ultimate controlling shareholders tend to use their control to "tunneling" company resources for personal use,transfer the company's assets and profits,or the company funds to produce private interests of non-profitable projects for the "tunnel" behavior on exterior investors plunder and the interests of minority shareholders.Cash as the strongest liquidity of the enterprise assets,is the company most likely to plunder the resources of predators,but also the most likely to become the object,the ultimate controlling shareholders so coveted,in Chinese,how ultimate ownership structure affect the company's cash holdings and cash adjustment speed?In the face of the uncertainty of the operating environment,what is the effect of this effect?Is there any difference between state-owned and private listed companies?This paper first discusses the ultimate ownership structure(including the degree of separation between cash flow rights,control rights and control rights and cash flow rights)how to influence the cash holdings of listed companies(including the speed adjustment strategy and cash holdings cash),and further compares the difference of this influence exists between China's state-owned and private listed companies;Secondly,we discussed the impact of uncertainty(including company level and macro level)on cash holding strategy,and the two factors of uncertainty and ultimate ownership structure.What's the strategy of corporate cash holdings? Finally,we confirm that before the domestic and foreign scholars put forward the trend of corporate cash holdings adjusted around a goal,we further found that when the cash holdings of enterprises are higher or lower than the target value,what is the situation of cash adjustment in enterprises? Is there a difference between the state and the private sector? In particular,the main conclusions of this paper are as follows:First,regardless of the cash flow rights of ultimate controlling shareholder is state-owned or private listed companies is stronger,less cash,control of the ultimate controlling shareholder is stronger,more cash holdings,with the ultimate controlling shareholders' control rights and cash flow rights separation degree increases,increase in cash.Second,the ultimate ownership structure of the state-owned and private listed companies cash holdings influence there is significant difference,the ultimate controlling shareholder's cash flow rights,control rights and cash flow rights separation degree of impact on cash holdings,between state-owned and private listed companies have significant differences;and control holdings impact on cash,no significant difference between the two.Third,the private listed companies,with the increase of quantile,the absolute value of the cash flow rights of Quantile Regression coefficients showed a gradual increasing trend;control of the Quantile Regression coefficient absolute value increases gradually;separation of two rights Quantile Regression coefficient absolute value all first increased and then decreased trend.The state-owned listed companies,with the increase of quantiles,the absolute value of the cash flow rights of Quantile Regression coefficient decreases gradually;control of the Quantile Regression coefficient absolute value increases gradually;the separation of two rights of the absolute value of the Quantile Regression coefficients are decreased.Fourth,whether all the samples,or the state-owned and private listed companies,both show the following rules: financial leverage,leverage the enterprises greater business risk bigger,uncertainty is bigger,so the company will increase the amount of cash holdings,to deal with the uncertainty,with cash hold the precautionary motive;macro economic policy uncertainty,enterprises are facing the business risk is bigger,the enterprise will increase cash holdings,to deal with the uncertainty,is also consistent with the precautionary cash holdings;and inflation expectations and corporate cash holdings at the macro level is significantly negatively related this shows that the inflation rate is expected to rise,companies will reduce cash holdings.Fifth,the impact of corporate uncertainty on cash holdings has no significant difference between state-owned and private listed companies.The macro level of uncertainty,including macroeconomic uncertainty and inflation expectations and cash holding amount of Chow test of regression coefficient,between state-owned and private listed companies have a significant difference,means the macro level of uncertainty related to cash holdings,there are significant differences between state-owned and private listed companies.Sixth,the interaction between ultimate ownership structure(including ownership,control and separation of two powers)and uncertainty at company level and macro level has a significant impact on cash holdings in both the whole sample and state-owned and private listed companies.Seventh,there are some differences on the uncertainty effect of private and state-owned listed companies cash holdings to adjust the speed,the operating leverage,macroeconomic uncertainty and inflation expectations have effects of adjusting speed of cash,there was significant difference between state-owned and private listed companies;and financial leverage and leverage effect of the adjustment speed of holding comprehensive for cash,between state-owned and private listed companies had no significant difference.Eighth,China's corporate cash holdings adjustment speed showed the following characteristics: the adjustment speed is greater than the shortage of cash holding enterprises holding excess cash adjustment speed of the enterprise;the shortage of cash holding companies,and more deviated from the normal level of corporate cash holdings to adjust faster,and the excess cash holding companies,is to adjust the speed and the normal level deviates more enterprises more slowly,and is faster than the speed of adjustment of private listed companies of state-owned listed companies.