Study On The Impact Of Ownership Structure To Cash Holdings Of Chinese Private Listed Companies

In recent years, The rapid economic development in our country, private enterprises have got rapid development in the process is not only in terms of scale and got great development in number, becoming an indispensable in our country’s economic structure is an important part. With the rapid development of them, and the related capital market and improve and perfect the laws and regulations is not enough, leading to a appeared in the development process of Chinese private listed enterprises, big or small, such as corporate governance issues, especially the shareholding structure problem, private listed companies in China are widespread ownership is highly concentrated, the family absolute control of the enterprise, they tend to manipulate the board of directors, management, affect the company’s strategic decision and management, to meet their own personal interests, do not hesitate to damage the interests of many medium and small shareholders, at the same time also reduces the value of the company.After reading a large number of domestic and foreign equity ownership structure and based on the cash holdings literature, the equity structure and cash holdings related theory systematically comb, analysis of Chinese private listed companies at the same time compared with the state-owned listed companies, as well as other listed companies of equity structure, on this basis for the private enterprise equity structure in our country put forward two hypotheses impact on cash holdings, with reference to the domestic and foreign research achievements establish proper model, then through the GTA and Wind collect private data of listed companies, descriptive analysis using SPSS software, correlation analysis and regression analysis, conclusion according to the analysis of the results and put forward policy suggestions.Text is divided into six parts:The first part is the introduction. The part mainly put forward in this article to study the problem, introduce the research background and research significance, finally determine the research ideas and research methods. The second part for the domestic and foreign research literature review. This part mainly introduces the ownership structure and cash holdings related literature at home and abroad, the related theory of ownership structure and cash holdings systematically comb, finally, the literature was reviewed. The third part is the private ownership structure and cash holdings of listed companies related theoretical analysis. This part firstly introduces the private listed companies, the definition of equity structure and cash holdings, then expounds related basic theory, finally analysis of the relationship between ownership structure and cash holdings. The fourth part is the research hypothesis and research design. This part mainly puts forward the management shareholding relationship with the cash holdings and the relationship between ownership concentration and cash holdings are two basic assumptions, select and explain in detail the independent variable and dependent variable, collect data and establish the empirical model. The fifth part is the empirical analysis. This part is mainly on the basis of chapter iv of the private enterprise equity structure in our country for quantitative analysis of the impact of cash holdings, mainly includes the descriptive statistical analysis, correlation test and regression analysis. The sixth is divided into conclusions and recommendations. This part is mainly according to the empirical analysis in this paper, we study the conclusion in the previous chapter, and put forward the corresponding constructive suggestions according to the research conclusion, Finally pointed out in this paper, the research limitations and future research direction.The results found out: The first, China’s private listed company’s cash holdings average of 22.09%, compared with western developed countries, our company’s cash holdings is obviously on the high side; The second, China’s private listed company ownership concentration average of 52.11%, this shows that Chinese private listed companies is still very serious equity concentration of problems, That Chinese private listed companies "a dominant" phenomenon still exists; The third, through multiple regression analysis, it is concluded that China’s private listed company’s equity concentration and cash holdings significantly positive correlation, Shows that large shareholders seeking to control earnings by self-interest behavior, In order to their own interests, under the more ability and incentive to increase their control of cash holdings, even at the expense of the interests of small shareholders; The fourth, the proportion of management shareholding private listed companies in China and cash holdings significantly positive correlation, resulting in the differences between managers and shareholders interests, caused the agency conflict, managers tend to target deviating and shareholders, In order to their own interests, Managers tend to hold more cash.Finally, the paper according to the results of theoretical and empirical research, put forward some policy Suggestions, mainly includes: The first, optimizing the equity structure, reduce the private listed company’s ownership concentration; The second, perfect the legal system to protect minority shareholders; The third, to strengthen the supervision of management.