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Research On The Influence Of Cash Holdings On Investment Of Domestic Agricultural Listed Companies

Posted on:2012-09-12Degree:MasterType:Thesis
Country:ChinaCandidate:W WuFull Text:PDF
GTID:2189330335489269Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
Cash holding decision is an important decision in company, cash is not only play an important role for enterprises normal operation, but also direct impact on corporate financing and investment behavior, a reasonable level of cash holdings not only can ensure the enterprises stable and orderly To carry out business activities, while also can reduce the agency costs. At present, the level of cash holdings of listed companies is generally higher than abroad, but in recent years, the level of cash holdings of listed companies has shown a declining trend, but the listed agricultural company's cash holdings has increased year by year. This paper analyzes the factors of listed agricultural company's cash holdings measured the level of cash holdings, and determinate the level of cash holdings. Then study the level of cash holdings impact on the effectiveness of investment spending. Formed the following conclusions:(1)Take the financial data during 2005-2009 years of listed agricultural company as object study, Selected 6 factors from the financial characteristics, The regression results show that bank debt and cash dividends paid make significant negative correlation with cash holdings , cash flow make significant positive correlation with cash holdings, The financial leverage, firm size and investment opportunities is not significant correlation with cash holdings, so we choose bank debt, cash dividends and cash flows as explanatory variables, to establish the regression equation about the level of cash holding.(2)Compared the model value with the actual value of the listed agricultural company's cash holdings, divided the companies into two groups: the high and low amount of cash holdings, test the differences in investment between the high cash holdings and the low cash holdings, then study the effective of investment expenditure. The results show that the higher level of cash holdings, the more investment spending. But the investment expenditure is not significant correlation with the management achievement.
Keywords/Search Tags:Agricultural listed companies, Cash holding, Investment Expenditure
PDF Full Text Request
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