| Cash holdings is an important theoretical and empirical issue in modern corporate financial management. Corporate cash holdings is relating to corporate normal operation, growth and development as well as corporate financial behavior like investment, fund raising and dividend distribution, etc. Foreign researchers investigated cash holdings decision and determinants in respective of deep economics theory and financial theory and developed related important theories. In empirical study, they found evidence that some corporate characteristics have the same impact on cash holdings. But the determinants among different countries differ from each other because of their capital market, governance structure and economic policy etc. Compared with these, the study in cash holdings is just beginning in china.The paper divides the cast holdings determinants into corporate financial factors and governance characteristics factors and focuses on financial factors and related governance factors. Based on above theory analysis the model of the influential factors about the listed corporate cash holdings is set up combined with the financial and governance features of listed corporations in China. Furthermore, 768 listed corporate' data from 2002 to 2006 are chosen to make empirical studies. Company size, providing cash dividend, refinancial activity,controlling shareholder, board size have positive correlation with cash holdings, while factors like liquidity,cash flow, bank debt, financial leverage and the biggest shareholder kind have negative correlation with cash holdings. In addition, independent director ratio, manager share and lead power structure have no effect on cash holdings. From above this dissertation sets up a model that reflects the influential factors of cash holdings and estimates the ideal cash holdings of listed corporations. The conclusion reveals that the ideal cash holdings exsits in listed corporations, which verifies the research result of Opler. |
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