Research On Corporate Cash Value Baed On The Real Option Perspective

The value of cash holdings is one of the unsolved problems in finance.Based on the research results of scholars,the essence of holding cash is to obtain liquidity which provide the chance of invertment and insurance for company.The paper forcus on get the relationship between the value of holding cash and the investment value and insurance value of enterprise's cash.It selects the financial data of 613 non-financial listed companies and 2019 NEEQ-listed companies in China for 2014-2016 years,and uses the exchange option pricing model to price the investment value and insurance value of enterprise's cash.The research shows that the weighted average value of cash option value of Listed Companies in China is 3.3847,and the value of cash options between industries is quite different.This shows that the cash holdings of Listed Companies in China is generally insufficient.The value of cash investment options of the daily consumption,energy,healthcare and telecommunications service is high.Enterprises should broaden their financing channels to meet future investment needs.The value of cash insurance for health care,information technology and public utilities is slightly higher means a higher risk of debt repayment.While the weighted average value of cash option value of the NEEQ-listed companies in the IT industry is 4.8751.The investment value of cash options between economic zone is completely different.And the insurance value of cash options usually moves inversely to the equity scale.