Monetary Policy,Customer Relationship And Cash Holdings

As the most liquid assets,cash plays a vital role in the production and operation of enterprises.Too much cash will bring opportunity cost,resulting in a waste of funds.Cash shortage will bring risks to enterprises,and can not prevent emergencies in time.Balancing cash holding cost and shortage cost is very important for the development of enterprises.At present,under the background of buyer's market in China,customer relationship is becoming more and more important in the supply chain.It will affect financial analysis through various ways,and it is closely related to the decision of cash holding in the enterprise.This paper enriches the connotation of customer relationship from the dual dimensions of customer concentration and customer stability,in order to find an effective way to reduce corporate cash holdings.In addition,the country's different monetary policies will have different effects on the real economy,and make enterprises face different degree of financing constraints and free cash flow,and then affect the decision of cash holding of enterprises.Therefore,this paper first discusses the relationship between customer relationship and cash holdings based on credit rationing theory and stakeholder theory.And on this basis,the influence of monetary policy is considered.Then select 2010-2016 years listed companies in Shanghai and Shenzhen A share manufacturing industry as research samples,and use the fixed effect model to conduct empirical tests.Finally draw the conclusion,that is with the increase of customer relationship,enterprises will hold less cash,which is more significant under loose monetary policy.Moreover,under the loose monetary policy,the negative relationship between customer relationship and cash holdings is more significant in private enterprises.The innovation of this paper is that most of the relevant scholars start from the perspective of customer concentration,and based on the commitment motivation or preventive motivation of cash holdings to study the impact of customer relationship on cash holdings,and the two are positively related,and customer relationship will have a predatory effect on the enterprise.In the field of management,scholars believe that customer relationship is not only the interaction strength between the two sides,but also the stability of customers.The long-term stable cooperative relationship with the large customers can reduce the business credit supply and the agency problem,improve the availability of the loan,then reduce the motivation of the cash holding of the enterprise,and the customer relationship will have the governance effect on the enterprise.This study enriches the connotation of customer relationship and related theories.In addition,considering the financing constraints and free cash flow problems brought by monetary policy,is conducive to the government and enterprises to make correct decisions.