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Monetary Policy,Industry Growth And Corporate Cash Holdings

Posted on:2017-05-20Degree:MasterType:Thesis
Country:ChinaCandidate:S WangFull Text:PDF
GTID:2309330503989437Subject:Accounting
Abstract/Summary:PDF Full Text Request
Cash is the company’s most liquid assets, but also the worst of return on assets, its holding decision is an important part of the company’s financial policy.For cash holdings in the field of research mainly includes the influence factor of cash holdings and cash holdings economic consequences research, at present has entered the stage of comprehensive development, and has produced many excellent academic results, Some suggestions for the decision of corporate cash holdings.However, the existing literature on cash holding decisions does not explain why cash holdings differ in industry and the reasons for this difference.Growth differences as a key feature of the industry, determines the investment opportunities and the development of the space industry company owned, which is bound to affect the company’s cash holdings.This paper attempts from the point of view of industry growth, explain why inter-industry differences in cash holdings, enriches the characteristics of the industry factors affect cash holdings,expanding research ideas in the field of cash holdings.Secondly, combined the industry growth with product market competition intensity, financing constraints and property rights to study the corporate cash holding level and the effect of the value and influence, It conducive to a comprehensive understanding of industry growth of corporate cash holding decision behavior.Finally, introduce the macro monetary policy research, this is because the bank credit financing is one of the important channels, our country enterprise capital source and monetary policy is the important factors that affect the bank credit.So far, this article monetary policy and macro-industry growth and micro-enterprise cash holdings decisions linked, so that cash holdings of more analysis of relevant theory with Chinese characteristics, but also help the company through the grasp of the industry to bring high-growth investment opportunity, continue to improve or consolidate their market competitiveness.In this paper, the empirical results show that:(1) cash holdings behavior does exist differences between industries, and industry growth with the company’s cash holdings level and the value was significantly positive correlation;(2) the product competition in the market to strengthen the industry growth impact on cash holdings level and value effect;(3) the impact of industry growth level of cash holdings and the value effect has been further strengthened in financing constraints and private enterprises;(4) compared to loose monetary policy and tight monetary policy of the data found that industry growth impact on corporate cash holdings and value effect in the tight monetary policy, and this effect i increasing with the strength of the product market competition;(5)This paper found that industry growth impact on cash holdings and value effect are further strengthen in financing constraints enterprises and private enterprises;(6) based on cash holdings deviating from the further study on the value of the company: cash holdings deviation and cash holdings are deviation are linked to the value of the company significant positive correlation, but cash holdings negative deviation affect the value of the company has the damage, and industry growth and tighter monetary policy are able to strengthen this effect.At present, China is in the way of strategic adjustment of the industrial structure and the transformation and upgrading of the critical period of economic growth, the government in the formulation of monetary policy if we can with own profession development potential effective "match", pay full attention to the inherent law of the development of the industry and the industry’s own development potential, in order to ensure sustained and effectively promote the optimization and transformation of China’s industrial structure upgrade, the increased value of the enterprise, the coordinated development of the economy and has important significance.
Keywords/Search Tags:Industry growth, Monetary Policy, Cash holdings, Product market competition, Financial constraints, Property rights
PDF Full Text Request
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