A Study On The Growth Porformance Of Cash Holdings At Industry Characteristics

The concept of "cash is king" has been used to every link of enterprise capital management. Enterprise cash flow management level is often the key to decide the enterprise survival. Under the background of our country market economy turning for the better, the emergence of the GEM(Growth Enterprises Market) provides a new research perspective for the study of corporate cash holdings policy. On the one hand, the GEM with its difference from the main board listing rules, different regulatory conditions, presents different development characteristics from the main board; on the other hand, the GEM from 28 listed companies collective in 2009, has grown to 383 by the end of February 2014, although the set up time is shorter, but development scale is larger and the speed is faster.General description of the significance of this study was: first, the distribution of the difference between cash holdings level in the industry, as well as analyzing the characteristic of the industry features impacting on corporate cash holdings level; Second, on the basis of the industry characteristics of the impact on the level of cash holdings, then analyzing how the average cash holdings furtherly impacts the enterprise value and then providing new thinking angle and advice for investors, managers, and government regulators. This article is mainly on the basis of theoretical analysis using empirical research method. On the basis of review cash holdings related at domestic and abroad theoretical analysis and literature, research hypothesis is put forward, and then according to the hypothesis to select variables, to set up the model, finally using empirical research method.Research conclusion of this paper are mainly:(1) the assets structure, industry concentration are significantly negatively related to the level of corporate cash holdings; product uniqueness and cash holdings are significantly positive related; the revenue uncertainty fluctuations are positively related to the level of cash holdings.(2) The GEM’s actual cash holdings’ deviation from industry average cash holdings influences the performance of firm growth significantly, the cash holdings deviation larger, the effect on the firm growth performance greater.