Research On The Influence Of Economic Policy Uncertainty On Cash Holdings Of Chinese Agricultural Listed Companies

As an important research topic in the field of corporate finance,cash holdings deserve future discussion.On the one hand,cash is the most liquid assent for a firm's development,can help firms adjust its strategies when it's faced with product market competition and unknown competition;On the other hand,cash policy is not merely affected by these firm features,it is also influenced by macroeconomic factors industry and policy etc.Agriculture is the basic industry of our national economy.The cash holdings of Chinese Agricultural Listed Companies face more uncertainty,including climate change uncertainty,price volatility uncertainty,and economic policy uncertainty(PU).Climate change uncertainty and price volatility uncertainty on agriculture cash holding has been extensively studied and discussed.However,the research on the effect of economic policy uncertainty on cash holding of agricultural listed companies is still relatively rare.Under the framework of macroeconomic and microcosmic body's behavior,this paper analyzes the impact of economic policy uncertainty on cash holdings of agricultural listed companies based on the emerging and transition background of China.Taking the A-share agricultural listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2016 as samples,Considering the heterogeneity of financing capability and corporate governance,this paper measures corporate financing capability by property right attributes,regional financial development,bank-company relationship,and measures corporate governance by ownership concentration and management power,investigate the relationship between PU and cash holdings.Through theoretical analysis and practical test,We found that(1)PU is an important factor related to Chinese Agricultural Listed Companies.When PU rises,agricultural listed companies generally increase cash holdings.(2)This behavior is affected by the heterogeneity of financing capability.Agricultural Private Listed Companies' cash holding behavior is more affected by the uncertainty of economic policies.But good bank-enterprise relationship alleviates the impact of economic policy uncertainty on corporate cash holdings.Due to the support of national agricultural financial policy and inclined monetary and credit policy,the influence of regional financial development level on cash holding behavior of agricultural listed companies is not significant.(3)The lower the degree of equity concentration,the more obvious the uncertainty of economic policy is.But Managerial power has no effect on the relationship between cash holding and PU.