Listed Company's Cash Holdings Influencing Factors

Cash holding decision is one of the most important theory and practical project in corporate finance. As the blood of the corporate , cash not only effect the continuance of company daily operation, but also is closely related to corporate financing, investment behavior, corporate governance and external institutional environment. A reasonable level of cash holdings is good to the stability of the business activities and preventing the management crisis caused by the broken of the chain of funds. on the other hand, according to the agency theory, can effectively reduce the agency costs between the major shareholders and executives.After reviewing the main theory of the cash holding impact factors and the cash holdings status and institutional context of more than 1000 listed companies in Shanghai and Shenzhen Exchange in China recent years, this paper analyse China's listed company's cash holdings influencing factors through the empirical study of the finance and governance, which verify the applicability of the trade-off theory, financing order theory, agent theory in China's capital market. The conclusion of this paper provide the evidence of the cash holding research from a new perspective and ,for the manager, provide a practical reference to strengthen the management of cash holdings..