Font Size: a A A

Monetary Policy, Research And Corporate Financing Constraints Cash Holdings

Posted on:2015-01-30Degree:MasterType:Thesis
Country:ChinaCandidate:K L WuFull Text:PDF
GTID:2269330428970177Subject:Accounting
Abstract/Summary:PDF Full Text Request
Cash is the least profitable enterprise assets,but it is a necessary factor forbusiness establishment, turnover,investment,debt repayment in a enterprise,soholding some cash is a smart choice,and the rate is still changing actually. Accordingto the U.S. Department of the SFC,1980-2012cash holdings of listed companiesnationwide ratio (ratio of cash to total assets) increased by more than130%, morerepresentative of the Apple company, its cash holdings from$46billion in2010grew to nearly one hundred billion U.S. dollars in early2012,Google’s cash holdingsrose to$44.6billion at the end of2012at$35billion by the end of2010, their cashholdings ratios are close to10%. Compared with the foreign companies, in Chineseenterprises, the ratio of cash to asset are also changing, but more bigger, according tointernet resource,Tencent,the most famous technology enterprises,its cash holdingsfrom¥12.612billion in2011to13.383billion in2012,but its ratio of cash to assetdecreased from22.20%to18.32%. Cash in CHINA MOBILE increased by20billon, and ratio of cash to asset was more than20%.So what is the impact of China’slisted companies’ cash holdings behavior? In addition to seasonal fluctuations, thebehavior of corporate cash holdings but also by what impact? This paper examines theimpact of financing constraints on monetary policy to adjust the rate of growth ofcorporate cash holdings, because monetary policy has a direct impact on corporatefinancing and direct investment, the financing constraints represent a businessdependent on cash.This paper has five parts. The first chapter is the introduction; the study discussesthe background, meaning, logical framework, innovation. The second chapter ofthe scholars conduct research related to cash holdings and monetary policies wereconsolidated, including cash holdings motivations, influencing factors, theeconomic effect of microscopic pathways monetary policy and institutionalenvironment in the country and financial constraint relationships. Chapter III of thearticle is mainly constructed of monetary policy influence the behavior of the cashheld by the theoretical framework and financing constraints article hypotheses. Thefourth chapter of the financing constraint criteria were discussed, and the use oflogistic regression method was to build the index, followed by the use of multiplelinear regression analysis of panel data combined with the impact of monetary policyon corporate cash holdings behavior demonstrates the third assuming chapter, andthe regression results are analyzed. Chapter build content and data analysis,conclusions and policy recommendations based on the theoretical results of the articleof the foregoing, and conducted follow-up research prospects. Through these studieswe draw two conclusions:(1) the degree of monetary policy tightening cashholdings of listed companies positive correlation degree of change;(2) the degree ofcorporate financing constraints as the tightening of monetary policy on cash held some adjustment is different, in order to meet their needs during monetarytightening, in order to ease external financing constraints, to meet futureinvestment needs, high financing constraints companies will add more cash.
Keywords/Search Tags:Monetary Policy, Financing Constraints, Cash holdings behavior
PDF Full Text Request
Related items