The Empirical Research About The Reasons Of Cash Holdings In Listed Campanies In China

Along with the our country stock market fast development, the number of listed company increase, the scale expands, the structure unceasingly optimizes, the operation is unceasingly standard year by year.Compare with unlisted company, the listed company have good achievement, big scale, stronge ability expansion and so on. Listed company becomes the most active and the most developmental prospects in the modern market. Compares with other companies, listed company have financing adventage. But many listed company favor in holding the high cash.At present, the theory and empirical research has not produced the quite unified explanation to this phenomenon.This article bases on previous reseach to seek the theoretical reason of holding excess cash, definite variable and Constructs the model. Through the model we can discover the reason of holding excess cash in listed company.In this foundation research the relations of holding excess cash and company achievement. The article has used the method of the fundamental research and empirical research.The findings indicated that, the reasons of holding excess cash are the proportion of the current liability occupies all debt, the fixed asset accounts for the total property, the capital outlay rate, whether provides the cash dividend, legal person holds the stock proportion, the management level holds the stock proportion and the first three major stockholders holds the stock proportion. In recent years the massive companies hold excess cash, the level of holding cash is about 80 percent.This kind of phenomenon is serious, and also has the rise the tendency.From the relation of cash holding and company achievment, there is the relation in 2003,but in other 5 years it do not have this relation.This article has three Innovation aspects: First, the selected topic is novel. Related research quite few in our country. Second, the research point is new. In this article cash holding considerate profession, the enterprise scale and the many other factors influence. Third, reseach sample is big, the variable are many. The research model, which uses more than 20 variables to construct, chose 1,084 samples companies and six years' data to reseach.