Research About The Influence Of Cash Holdings On Investment Behavior

Cash is the enterprise’s greatest asset liquidity and it is the most basic media in commodity exchange,at the same time it reflects a company’s operational and financial strategy.So in today’s environment of market economy,cash will undoubtedly become the most important factor to guarantee long-term development of enterprises. While investment in economic activities as a pivotal part in the direction of its ability to maximize the value of enterprise and were directly affected by the level of cash holdings.In addition, due to the presence of cash holding costs, internal costs and loss on cash holdings of investment opportunity cost measure also makes the relationship between cash holdings and investment behavior increasingly close.In recent years,studies on such issues has been widespread concern of scholars.However, from the current research point of view, most of the scholars listed companies as a whole study,but few people to further classified as non-listed state-owned holding company listed companies and state-controlled listed companies.Taking into account the essential difference between the two and the need for its division, this article attempts to China’s non-state-controlled listed companies as a research starting point, analyzes the differences in investment behavior different impact of this type of corporate cash holdings and further the efficiency of investment behavior was explored.In accordance with the theoretical basis of thesis- theoretical- empirical thinking on the relationship between cash holdings and investment behavior were studied.First,the article clearly the meaning and measure of cash holdings and investment behavior,defines the concept of non-state-controlled listed companies, the article introduces the theoretical basis used in research.Secondly, based on different theories on cash holdings affect the investment behavior of the mechanism of action is analyzed in detail.Finally,select the country Shenzhen 800 non-state-controlled listed companies 2012--2014 years of financial data for the study,Opler objective measurement using cash after the regression residuals to distinguish between positive and negative and high holding company is not sufficient to hold,and cash flow effects of different models of cash holdings and investment behavior of the specific relationship between operating results as a starting point to further analyze the efficiency of investment behavior,draw relevant conclusions about China’s non-state-controlled listed companies:(1) tend to hold higherlevels of cash;(2) high corporate cash in order to seize the investment opportunities that the cash holdings of investment is mainly used for consumption rather than self-interest,the performance held for cash proportional to the level of investment expenditure;(3)high cash investment behavior is carried out efficiently.Aiming empirical results obtained with the actual situation of China’s non-state-controlled listed companies, the level of cash holdings in different sectors,strengthening internal management, the development of investment plans put forward policy recommendations to China’s non-state-owned holding on development of listed companies to make investment decisions and to bring enlightenment.