The Empirical Research Of Factors Influence Cash Holding Level Of Listed Retailing Companies In China

Along with the completely open of the retailing market, the survival and development of domestic retailing companies are facing tremendous challenges. The management especially financial management in the retailing companies will have a direct effect on the development of these companies. Cash holding is close related with the daily operation of the business and can extend to every aspect. To some extent, the competitive ability of a company is directly depending on the ability of cash holding management. So the studying of cash holding level management of listed companies in the retailing industry has a great sense both in theory and practice.In this thesis,based on pervious studies,according to the characteristics of listed retailing companies, we selects12indicators from two areas including corporate financial characteristics and corporate governance factors to establish index system of factors influencing cash holding level with the retailing companies listed on Shenzhen and Shanghai Stock Exchange market.Then with SPSS17.0and EVIEWS6.0,the factors influencing the cash holding level of retailing companies is analyzed from the static and dynamic perspective,through cross-sectional data analysis and panel data analysis, the final conclusion can be made as follows:In the cross-sectional data analysis, company size, the growth of enterprises, cash turnover ratio, cash dividend is significantly and positively related to cash holdings, financial leverage, cash substitutes is significantly and negatively related to cash holdings, but other factors are not significantly related to cash holdings. Considering the time factor, company size, cash flow, ratio of current liabilities,the proportion of independent directors is significantly and positively related to cash holdings, financial leverage, bank debt ratio, cash substitutes, ratio of current liabilities, cash turnover ratio, cash dividend, the scale, major shareholders equity ratio is significantly and negatively related to cash holdings, but the growth of enterprises is not significantly related to cash holdings. Finally, based on the theoretical and empirical research results, this thesis gives some advice on how to improve the efficiency of cash holding level management.