Financial Characteristics, Ownership Property And The Value Of Corporate Cash Holdings For The Listed Firms In China

Although cash is the most common assets held by the company, but the distribution is directly related to company's investment, financing behavior, dividend distribution and operating policies, it played an important role in financial management for the company, so from the company's financial and operating strategic perspective, the importance of cash is self-evident. Since the late 90s of last century, a large number of foreign enterprises have held large amounts of cash and cash equivalents,the problem of Corporate Cash Holding has caused widespread concern in academic study circles at home and abroad. Especially when the U.S. subprime mortgage crisis gradually evolve to the global economic crisis and further spread to the global real economy, the thought of'cash is king, a strong first" is sought by the investors, and is also considered as the truth to through the crisis, in order to keep the capital chain, companies have to stay live cash, and in a time the cash has become a magic dealing with the crisis.This paper sort out the relevant literature on cash holdings of listed companies, do a review for the theory of cash holdings, and clarify the context of existing research, analyze the pros and cons. To the current study, from the perspective of investors, the research on economic consequences of cash holdings listed in China, that is, the value of cash holdings is less. Inherit and learn from the existing research, this paper will choose the marginal value of cash holdings as the main research directions. Faced with this proposition, this article further then comes down to the issue discounted cash holdings of listed companies, cash holdings and the value of financial leverage, as well as listed companies held by the option and the cash value of such a major Direction, respectively, in the present study based on the theory proposed hypothesis. Finally, empirical research tested these hypotheses and obtained the results of this study.Through research, the paper came to the conclusions:(1) On average, the marginal value of the cash holdings of the listed companies is 0.89 yuan, there is a clear discount;(2) There is a close relationship between the value of cash holdings and the cash levels, the marginal value of cash holdings of the listed companie will be held down while the company has the rise in the level of cash;(3) The amount of financial leverage ratio of listed companies and the marginal value of cash holdings are negatively correlated, the marginal value of cash will increase as the leverage ratio decreases;(4) With respect to the absolute state-controlled listed companies, the market value of cash hodings of non-state holding listed companies are higher;(5) To the overall, the relationship between the marginal value of higher cash holdings and the proportion of shares showed a U-type.In this regard, this paper puts forward some proposals like:teach listed companies to hold or use their cash rational, use financial leverage rational and optimize the capital structure, architecture efficient capital markets, improve corporate governance of listed companies and strengthen information disclosure, improve the information disclosure system, and strengthen investor education.