The Analysis On The Cash Holdings Level Of Listed Companies Of Machinery Manufacturing In China

This paper based on the machinery manufacturing in China as the research object and domestic and foreign cash holdings level in theory and empirical research. It chose 169 listed companies in machinery manufacturing as a research sample in 2007 to 2009.Firstly, this paper analyzed the status of cash holdings level based on characteristics of the listed companies in machinery manufacturing in China. From the whole sample, it was slightly higher than cash holdings level of China's listed companies and the listed companies of manufacturing. The situation of cash using had certain disparity with the most foreign developed countries. Cash holdings level in different mechanical industries also had difference.Secondly, this paper constructed the model of factors affecting of cash hold level in the whole process from the perspective of the financial management, and the introduction of six explanatory variables as company size, financial leverage, growth, investment, debt maturity, payment of cash dividends. Empirical results showed that: company size, growth and cash holdings were correlative; financial leverage, investment and debt maturity were negatively correlated; and cash dividend payments was not statistically correlative.Thirdly, this paper constructed the influence model of cash holdings level on operating performance, and proved the proposed hypothesis "when the company maintains certain high cash holding level, the company's operating performance is better". On this basis, it constructed the influence model of cash holdings level on operating performance with conic estimation method. Empirical results showed that: the relationship between cash holdings level and operating performance was U conic section relation in listed companies of machinery manufacturing in China; the inflection point is 13.87%.Finally, based on the research results from theory and empirical, this paper brought out some suggestion to promote cash held decision-making advice in listed companies of machinery manufacturing in China:from the government's perspective, we should perfect the development in China's capital market, strengthening the country's investment and financing system-building; from the industry's view, we should strengthen capability of independent innovation in listed companies of machinery manufacturing in China to maintain the balanced development of mechanical industry; from the companies'view, optimization of machinery should be comprehensive in financial environment of listed companies with strengthening cash management.