Empirical Research On The Determine Factors To Listed Companies’ Cash Holdingsin Chinese Market

Corporate’s success often depends on many factors, such as strategic mistakes, poor marketing, financial management confusion, etc., all of these may lead to a decline in corporate profitability, loss and even total collapse. Cash flow is the priority of business. Cash management will directly affect the company’s operating efficiency and effectiveness. Cash management is the irreplaceable factor of the survival and development of enterprises, many studies have been done through ages, but researches on this subject will be never-ending. With the passing of the times, cash management will become the focus of practice and academic theory. Through the researches on many potential factors, I’ve found that factors like enterprise scale, agency costs, debt structure, etc. has an important impact on the business, but also confirmed the factors such as the ownership structure, management structure for cash holdings are not directly related to this conclusion. In addition, the paper also raise the viscous effects of corporate finance, and empirical research confirms this conjecture, has reached the conclusion that corporate cash holdings and corporate level of trust and dependence for the past financial processing has great relevance. This article also presents some effective way to deal with and cash management. Approaches to the cash management can certainly help managers in their daily practice or be able to provide some advice. This paper argues that, in the future, more and more business owners or academic experts will pay more attention to sights factors affect the company’s cash holdings. This paper believes that this issue involves the interests of each business, management efficiency and financial health of each level of the enterprise, if scholars can give a complete theory, and also can demonstrate the importance of these factors, then this will promote the further development of corporate cash management, and help companies better in facing the changes in the market, to more effectively organize production, to create value, ultimately it will not only for the individual enterprise to achieve the purpose of profit, but more one whole health of development of the Chinese market.