The Ultimate Control Of Private Listed Companies Ownership Structure Characteristic And The Study On The Relationship Between The Cash Holdings

Cash holding is an important policy to a company’s financial strategy and business strategy. One hand, the amount of cash holdings can effectively reflect the results of corporate governance. On the other hand, the amount of cash holdings also can effectively reflect the company’s financing environment. Affect the impact of cash holdings by many factors, but also the focus of domestic and foreign scholars, such as board size, proportion of independent directors, industry competition, company size, corporate governance, but in the context of our particular situation, China’s private listed companies, according to people’s control over the ultimate control structure under the control of different stages of its cash holdings are reasonable, and in different stages of the cash holdings of control whether it can effectively enhance the company’s value This is a major research article analysis of the problem.In conclusion, domestic and foreign cash holdings on corporate governance and related literature, with its three-year period2007-2009, China’s Shanghai Stock Exchange and Shenzhen Stock Exchange A-share listed companies for the study sample of private enterprises, access to420private companies samples of the company listed in our special environment and financing environment, the private companies holding the pyramid structure and the relationship between cash holdings.Article to the ultimate controlling shareholder control over the classification based on the sample, in accordance with the ultimate controllers of the listed company’s financial policies and operating policies of the weight, the private companies are divided into three categories:no effect (0,20%), joint control or a significant impact [20%,50%), absolute control [50%,100%], respectively, test the ultimate controlling shareholder control over cash flow rights, cash flow rights and control over the amount of deviation between cash holdings and relations, and on this basis, further Analysis of China’s private listed company’s cash holdings and firm value relationship.The results showed that China’s private listed companies, the ultimate control over the different stages of their impact on cash holdings is not nearly the same, and found that, under the ultimate control over the different stages of the value of the cash holdings of the company’s impact varies. Detailed analysis showed that China’s private listed companies, the ultimate control of the (0,20%) range, the control of cash flow rights, co-existence with the deviation of cash holdings were no significant relationships; ultimate control over the [20%,50%) range, the ultimate control rights and cash holdings at1%confidence level showed a positive correlation between the degree of deviation of ownership and cash holdings with no significant relationship; ultimate control over the [50%,100%] range, the ultimate control rights and cash holdings at10%confidence level showed a positive correlation between the degree of deviation of ownership and cash holdings at10%confidence level was negatively correlated; and cash flow rights, no matter what stage in and under the control of the company’s cash holdings were no significant relationships. Further studies under different control stages of cash holdings and firm value relationship, the results show that the ultimate control in the (0,20%) and range [50%,100%] range, the company’s cash holdings and corporate no significant relationship between the value of; ultimate control over the [20%,50%) range, the company’s cash holdings and firm value at1%confidence level were positively correlated.