The Impact Of Anti-corruption On Corporate Cash Holdings

In the context of financial de-leveraging and tight regulation,enterprises need to do a good job in cash management.The company's cash holding behavior is affected by the political and economic environment in its area.At the same time,the phenomenon of establishing political connections among enterprises also has a great relationship with the political environment,and the anti-corruption policy has greatly changed the political and economic environment that enterprises face.Therefore,the relationship between anti-corruption policy,corporate cash holdings and corporate political relations deserves our attention.Under this background,this paper selects the data of non-financial companies issuing A-shares in Shanghai and Shenzhen from 2008 to 2015 as the research samples,and uses the intensity of anti-corruption policies and the data of corporate cash holdings and political connections for empirical analysis,to explore whether efforts to strengthen anti-corruption policies since the 18 th CPC National Congress will affect the level of cash holdings of enterprises,while observing the relationship between politically connections and corporate cash holdings,and carried out the OLS regression on the anti-corruption policy,corporate cash holdings and political connections.Finally,the paper uses some robustness test methods for basic regression results,making the empirical conclusions of this paper more convincing.Empirical evidence shows that the stronger the anti-corruption policy is,the lower the cash holding ratio of enterprises;the cash holding level of the political affiliated enterprises is significantly lower than that of the non-political affiliated enterprises,and the effect is only significant to private enterprises;For companies that do not have political connections,the negative impact of anti-corruption policies on corporate cash holdings will increase.The conclusions of the study provide empirical evidence for examining the micro-effects of anti-corruption policies and put forward relevant suggestions from the three levels of enterprises,governments and investors.