The Research On The Value Of Cash Holding Of Real Estate Listed Company Based On Financing Constraints

Operating cash flow reflects the companies held in cash and its cash managementcapacity, particularly in monetary and credit environment tightened to firmly controlthe flow of the background, more and more companies tend to hold sufficient cashflow. Corporate cash holdings behavior not only reflects the company’s businessstrategy and financial strategy, closely related with the structure of corporate govern-ance and social macro-institutional environment. The behavior of corporate cashholdings, methods, decision-making and efficiency of enterprise sustainable businessdevelopment, has an important impact. Cash holding in the decision-making is animportant corporate financial behavior.Based on the literature and practice, research the relationship between financingconstraints and firm value from theory analysis, build the foundation for theestablishment of empirical research. And then studied from the perspective offinancing constraints on the cash value of real estate listed companies combingthrough review of relevant theory and literature, to draw the classification criteria ofthe relevant financing constraints, different classification criteria, sample cash derivedthrough descriptive analysis and regression model marginal value, and a comparativeanalysis of the total sample of the full sample of the real estate listed companies,research the impact of financing constraints on corporate cash value, and finally makerecommendations. The full text follow the theory-the status quo-design-logicalstudy of the proposed framework includes the following five parts:First, this paper introduces the research background on the basis of, and guidethe real estate companies cash efficient use of the cash value of the relevant theoreti-cal basis and documentation described and combing, and then based on the empiricalresearch of scholars committed illegal, the results of descriptive analysis thus leads to the question of this study.Secondly, the listed real estate companies for the study sample, the use ofstatistical software, the SPSS17.0system the status of the cash holdings of listedreal estate companies, and sample comparison of the data of all listed companies.Found that listed companies in China high levels of cash holdings, low level of cashholdings of listed real estate companies, and to explore the reasons for the differences,and to lay the foundation for the next empirical test. Specific empirical researchprocess through the establishment of the multiple regression model (FW model), firstdefine the classification criteria of financing constraints in the state of financing const-aints, the empirical test the cash value of real estate enterprises. And the empiricalresults of a theoretical explanation.Finally,through the analysis of the status quo and the cash value of real estatecash held by proposed countermeasures and suggestions to promote the efficiency oflisted real estate company’s cash, to improve the value of cash holdings.By the results of theoretical analysis and empirical research we draw some usefulconclusions:From the background statistical analysis of listed real estate company’s cash heldwe found that the level of cash holdings is less than the industry average. Reflectionof the properties of listed real estate funds, real estate industry is a capital-intensiveindustry, the demand for capital is higher. Link in the flow of capital, recovery is slow,these factors have contributed to the lower level of cash by the real estateindustry. Among them, the firm’s cash level of electronic communication is thehighest, but real estate industry in the sort of cash levels is at the end of the location.Further research found that real estate enterprises of different sizes corresponding tothe level of cash is different, the greater the scale of assets, higher cashlevels. Secondly, the large-scale real estate enterprises the level of cash is more stable,less volatile and more.The establishment of a multiple regression model, an empirical analysis of thesamples of the six consecutive years of511real estate listed companies, we find that:The cash value of real estate listed companies significantly low and below theindustry average, indicating that China’s enterprises, especially the cash efficiency inthe use of real estate enterprises is not high, it has the low level of corporategovernance. Foreign scholars study found that the cash value of the developedcountries in Europe and the United States listed companies are generally around$1,Dittmar and Mahrt-Smith (2007) study found that companies with low cash value with a value of0.42to0.88U.S. dollars, held by an enterprise of high cash value Thecash value is two-fold. The cash value of the companies high dividend payout ishigher than the low payout companies, the company’s large-scale corporate cash valueis greater than the cash value of small-scale enterprises. We found more efficient useof corporate cash holdings in financing constraints, which will create more value.Secondly, the growth opportunities grouping analysis showed that the cash value ofthe high-growth companies is greater than the cash value of the low-growthenterprises.Cash market value of listed real estate companies there is a greater loss,Pinkowitz (2006) study found that strong investor protection countries, corporate cashvalue of$0.95, while the weak investor protection countries, the cash value of only0.29million. Can be found in China is weak investor protection countries, this isbecause the development of China’s capital market is imperfect, regulators lack ofeffective supervision, and low level of corporate governance and other causes.