The Study On The Relationship Between Company's Dependence On Bank And The Marginal Value Of Cash Holds

Can bank play a lender role to ease agency issues? Banks are indispensable in our financial system,bank loan is one of the main ways of corporate debt financing in China.Company's dependence on bank provide conditions for external governance system and a window for the bank's debt management mechanism.Bank need to guard against risks and regulate the use of funds by borrowers that ease the agency problem and may increase the market value of cash assets.Faced with different quality of accounting information of enterprises and company growth ability,the supervision effect of banks on cash assets are different.For firms with high quality of accounting information and high-growth,The marginal value of cash holdings does not increased,because banks have a borrowing preference and may be relaxed on corporate governance,bring poor governance effects of debt.While for firms with low quality of accounting information and low-growth,The marginal value of cash holding may be large,banks have information superiority and ability to identify risks relative to other information users and to supervise enterprises.The article selected 2011-2015 shen zhen stock exchange listed companies as a sample,combined theoretical analysis and empirical research,analyzing the relationship of the dependence of banks on the marginal value of cash holdings under different quality of accounting information and company growth ability.Taking into account the enterprise's dependence on banks may affect the debt structure of enterprises and financial leverage,this paper further explores the impact of debt structure and financial leverage on the marginal value of cash holdings.The proportion of bank loans to total assets to measure the degree of dependence on bank(dependence on bank)and the marginal value of cash is used as the proxy variable for agency costs.It is found that the bank dependence is positively correlated with the marginal value of cash holdings.In addition,Compared to firms with high quality of accounting information and high-growth,firms with low quality of accounting information and low-growth,the bank dependence influence the marginal value of cash holdings more positive.Increased bank reliance may raise financial leverage,this paper found that company's financial leverage increased,cash holdings of the company have significant value impairment,mainly appears in the enterprise that the proportion of bank loans to the total liabilities is small.