Research On Financing Constraints And Cash Holdings Of Listed Companies

In the capital market,the level of cash holdings of enterprise is closely related to business operations.Reasonable amount of cash holdings has become an important business strategy.Corporate cash holdings are not only related to the daily production and operation,but also the companies' capital structure,investment and financing decision-making and managers dividend allocation decisions.However,in the real capital market,information asymmetry and agency problems,to some extent,affect the degree of difficulty of enterprise's financing constraints,eventually leading to that external financing cost is higher than inside.Under this certain background,this essay firstly collects and summarizes literature about financial constraints' influence on cash holdings domestic and overseas.Then this essay builds hypotheses and text them in exploratory ways based on actual situation of our country's capital market.This essay mainly takes 2009-2014 Shenzhen and Shanghai listed company as total sample space,then rank and filtrate,of which combine the complexity of our country's listed companies,and further analysis and construct a measure of financial constraints model through preliminary data.Unlike previous research,this essay is not clarifying sample space by single indicator or multivariable index,but preliminary ranking sample space through enterprise scales index,then build index Z by select representative net interest rate and times interest earned in equity financing and debt financing,and further subdivide and filtrate according to index Z.Within,dependent variable is the ratio of cash and cash equivalent to net assets.Cash flow,cash flow volatility,investment opportunity,asset-liability ratio,capital expenditure,cash substitutes,dividend payment are used as independent variable.After these preparations,this essay analyze sample data through econometric model,then further analyze main questions mentioned and compare the influences between these two and cash holdings under different financial constrain situations.The results show that,first,the degree of financing constraints will affect the enterprise cash precautionary motive.Enterprise with stronger financing constraints also have stronger precautionary motivation than corporate with weaker ones;Second,from the perspective of measuring the motivation of enterprise cash,whether the financing constraints is strong or weak,the precautionary motive plays a key role.Through literature study,in the process of preparation of the article,it found that the division modes of the relevant index to the listed companies financing constraint way more,no matter which measuring way,it can be found that there is a direct relationship between the level of cash holdings and financing constraints in Chinese listed companies.In addition to sure that relationship,this article will provide a new research perspective and empirical data for the follow-up study.