The Correlation Analysis Of Asset Structure And Cash Holdings

Cash as an asset of the enterprise has important meaning for the company. Cash has thestrongest liquidity and solvency in the enterprise. The main purpose of cash holdings incorporate is to satisfy the demand of payment and debt, cash holdings’ quality to a large extentreflects the enterprise’s profitability and solvency, ultimately reflects the enterprise businessstrategy and financial strategy. Therefore, the enterprise must determine certain cash holdings.At home and abroad on the cash holdings has been researched very rich achievement, afterreviewing the relative literature found in the process of domestic and foreign scholars from thecash holding of theoretical research and empirical research have certain mature conclusion,empirical research mainly from the enterprise internal factors, corporate governance factors andexternal factors were discussed, related the conclusion of the study has been more rich andperfect. But many of the empirical research of cash holdings and the positive research on theasset structure, few scholars consider the asset structure on the cash holdings of the influence,on asset structure and cash holdings have relevance and show how the correlation is not veryaccurate and comprehensive study. Therefore, this article on the asset structure and cashholdings of the relevance theory and empirical analysis, from the angle of theory anddemonstration to view of assets structure and cash holdings are correlated, and constructs theoptimal cash holding model on the basis.This article proceed with the listed company capital structure and cash holdings of thecompany’s financial meaning, selected the sample company assets structure and cash holdings,used statistical analysis software to analyze the listed company capital structure andprofitability of the relationship.The article selected the Shanghai and Shenzhen two citymanufacturing industry and circulation industry in the selection of20, a total of40samplecompanies, used their2008to2010for3consecutive years the published audited financialdatas as samples.The article set the company asset structure index as explanatory variables, setcash holdings index as the explained variable; choose cash assets ratio, liquidity ratio, fixedassets, current assets fixed assets proportion ratio, monetary fund ratio as the asset structurerepresent variables, net flow of management activity cash ratio to total assets, net flow ofmanagement activity cash flow liabilities ratio as cash holdings represent variables, use theSPSS software analysis of correlation and regression function multiple linear regressionanalysis, from the perspective of the empirical proof of assets structure and cash holdingscorrelation. The theoretical analysis and the empirical results indicate that the reasonableallocation of assets, optimize capital structure on corporate cash holdings has importantimplications for construction enterprises, and the optimal cash holding model has certain effect.