Credit Risk Spillover And Corporate Liquidity Management

As the guarantee of the company's continuous operation,the importance of the company's liquidity management is self-evident.Proper liquidity management can not only respond to the company's capital needs,but also enhance the value of the company.With the development of China's capital market,the relationship between companies becomes more and more close,and the possibility of credit risk spillover also increases gradually.At present,domestic and foreign scholars' research on credit risk is limited to two or more closely related companies.Few people study credit risk spillovers from the industry level,and research on the impact of credit risk spillovers on corporate liquidity in the industry.It is rare.Therefore,based on the relevant theories of credit risk spillover and corporate liquidity management,this paper selects 1164 listed companies in China's manufacturing industry from 2008 to 2017 as a sample,and discusses in detail the impact of credit risk spillover on corporate liquidity management..This paper first distinguishes the credit risk contagion effect of credit risk spillovers and the product market competition effect,and secondly constructs the credit risk contagion effect(CRC)and product market competition effect(PMR)indicators,and conducts indicator appropriateness test;finally chooses cash holding Volume,cash margin value,and credit line are the main indicators of corporate liquidity management.The effects of credit risk contagion effect(CRC)and product market competition effect(PMR)on corporate liquidity are studied.The main conclusions of this paper are as follows: firstly,when the company is faced with high credit risk contagion effect(CRC),the company will use the cash to obtain the income and reduce the cash holdings.When the product market competition effect(PMR)is high,the company will increase its cash holdings to invest in time to gain a competitive advantage in the industry.Secondly,the higher the credit risk contagion effect faced by the company,the greater the marginal value of cash,the 1%increase in CRC and the 2% increase in the marginal value of cash;the greater the competitive effect of the product market,the smaller the marginal value of cash,the 1%increase in PMR.The marginal value of cash decreased by 1.2%.Finally,the more competitive product markets the company faces,the more likely it is to get a line ofcredit from a bank.However,the level of credit risk contagion effect has no obvious influence on the access of credit line.This paper studies the impact of credit risk spillovers on corporate liquidity management from an industry perspective,which is rarely studied by scholars in China.At the same time,different from the research on liquidity management of general companies,this paper incorporates credit lines into liquidity management to study the impact of credit risk spillovers on corporate credit lines.Finally,the study found that China's special system and market mechanism make the company not increase the cash holdings even if it faces a high credit risk contagion effect.This is different from the foreign research results,and it has certain liquidity management for Chinese companies.Learn from value.