Research On The Cash Holdings And Corporate Performance And Expenditure

Cash flow is the most important factor in the company's business activities.Whether in the theoretical development or empirical research,cash flow has always been a key topic for scholars at home and abroad.The level of cash holding is a matter that must be considered by the company's managers,but also closely related with the macro policy background such as economic development cycle,the overall status of the industry and the strength of the company itself.Manufacturing industry is also a typical cycle of continuous input-output.Therefore,the demand for cash flow from manufacturing is more critical and urgent than that of general enterprises.This article selects a representative manufacturing company in listed companies.Based on the previous theories and empirical evidence,it analyzes the factors affecting the level of cash holdings and the relationship between holding cash,corporate governance,company performance and capital expenditure.In terms of content planning,the first is review of cash holding theory and literature review.Second,it examines whether the company has a target cash flow and then do empirical tests of cash holdings,performance,and spending.Third,considering the difference between state-owned enterprises and non-state-owned enterprises in Chinese companies,when doing performance regressions,empirical analysis is based on the groupings of cash holdings and groupings of companies.In addition,this article uses the Fama-macbeth two-step regression model and the empirical results are generally consistent.The main conclusions are:(1)The level of cash holdings of listed companies in the manufacturing industry in China is about 18%.The difference in leverage and variance within the manufacturing sector is relatively large.The object of study—the mean coefficient of regression for manufacturing companies is negative,that is,cash holdings are adjusted according to the previous period.In the full sample,manufacturing leverage was negatively correlated with cash holdings.Cash flow,cash-alternative,growth opportunities,debt levels,capital expenditures,and dividends are positively correlated with cash holdings.The relationship between company's size and cash holding level first positive and then become negative.(2)In the full sample regression,the impact of cash-alternative and leverageon the performance was negative but not significant,and the remaining variables had positive effects on the results,especially the cash holding level and cash flow.According to the grouping of companies,the relationship between corporate governance variables and performance is significantly positive.In the nature of state-owned enterprises,this factor has lower performance than non-state-owned enterprises,and it becomes insignificant after grouping.In non-state-owned enterprises,the relationship between cash holdings,corporate governance variables and performance is significantly positive.According to the level of cash holdings,the effect of corporate governance variables on performance is significantly consistent between state-owned and non-state-owned companies.That is,the effect of corporate governance on performance is significantly positive at high cash,but the performance of non-state-owned companies is affected.More.Finally capital expenditures of state-owned and non-state-owned enterprises have increased with the increase in cash holdings...