Empirical Study On Governance Structure Of Listed Company's Impact On Cash Holding

Cash holdings of listed corporates are very important in a corporation's financial decision-making. Cause it can not only affect a corporation's daily operation and transaction, but also can affect a corporation's other decision-making, for example, investment etc. Besides, the corporate governance has a great effect on cash holdings amount.This paper is aimed to study the impact of corporate governance structure on cash holdings and put forward advices on improving the management on cash holdings by improving the corporate governance structure. In this paper, I based on the Classical theory of cash holdings amount and tested the impact of corporate governance structure o the cash holdings. The result of the empirical test is that:The ratio of State-Owned shares, the First Outstanding Shares, Ownership Concentration, Shareholder Protection and Monitor variable are negatively correlated with cash holding variable. The ratio of Corporate Shares, Senior Manager Shareholder, Independent Director, scale of Board of Directors and CEO duality variable are positively correlatedwith cashholding variable. Among the listed companies of China, I've found some shortcomings about governance structure and cash holdings management. Therefore, I think the countermeasures for listed companies to improve the governance structure are in aspects of Board Structure, Management incentives, and Investors monitor the cash holdings.