Monetary Policy,Financing Constraints And Cash Holdings

The cash holdings based on preventive motives are closely related to the degree of financing constraints faced by enterprises.The monetary policy,the financing environment and the heterogeneity of enterprises can influence the cash holding behavior of enterprises by changing the degree of financing constraints.In fact,financing constraints can be understood from two dimensions:the external financing environment and the external financing capacity of the firm.Monetary policy,the level of regional financial development and so on mainly by changing the external financing environment to act on the cash holdings of the "preventive motivation",the company's heterogeneity is more of a response to how different corporate financing capacity acts on "Preventive motive".This paper chooses quarterly data of A-share listed companies from the first quarter of 2012 to the second quarter of 2016 as the research sample,builds the balance panel data of 1519 companies,and adopts the fixed effect model as the empirical tool.The growth rate of the broad money M2 is the measure of the monetary policy,the quarterly adjustment of the monetary fund is the explanatory variable,and the influence of the macro monetary policy on the cash holding behavior of the enterprise is analyzed.Furthermore,from the perspective of regional financial development level,the nature of property rights and the scale of assets,the sample enterprises are divided into high-financing and low-financing constraints enterprises to analyze the different effects of monetary policy on corporate cash holdings under different financing constraints.The main conclusions of this paper are as follows:When the monetary policy is tight,the enterprises tend to raise the cash holding level.When the monetary policy is tight,the cash holding adjustment of enterprise in low financial development level region is high and that of enterprise in high financial development level region is insensitive.When the monetary policy is tight,the cash holding adjustment of private,small assets enterprises is high and that of state-owned,large-scale enterprises is insensitive.In general,the sensitivity of corporate cash holdings to monetary policy is closely related to the financing constraints it faces,and the cash holdings of high financing constraints firms are more sensitive to monetary policy than those with low financing constraints.