An Empirical Study On Cash Holding And Market Value Management Performance Based On The Gem Enterprises

For investors,choosing a company is because they are optimistic about the company's ability to earn free cash flow in the future and bring benefits to investors;for a company,how much cash flow it holds determines when the company faces good investment opportunities Whether there is enough funds to support its strategic competitive advantage and whether it has sufficient capacity to absorb losses when risks come,the level of corporate cash flow is critical for investors and companies because of its risk control and strategic competitive advantages.It is an important part of enterprise management.On the other hand,with the continuous improvement of the financial market and the continuous improvement of market efficiency,the "bubble" caused by the initial irrational investment is in a gradual downward trend,and the market tends to mature and stabilize.However,the effectiveness of the market still makes the market value of the enterprise and the intrinsic value of the enterprise not completely equal.Therefore,in the past,when we simply measured the value of the enterprise by the market value,it was inaccurate.This article will define the market value management of enterprises from a more comprehensive perspective,mainly from three dimensions of value creation,value realization and value management to measure the market value management effect of listed companies.This article uses the quarterly data of the cash flow holding level and market value management effect of the listed GEM companies from 2009 to 2010 as the total sample,and combines qualitative and quantitative methods through literature research methods and empirical research methods.The method explores the impact of corporate cash holdings on the effectiveness of corporate value management.The empirical results show that there is an inverted Ushaped relationship between the cash holdings of GEM companies and the performance of corporate market value management.With the increase in cash holdings,the benefits gradually transition from positive effects to side effects.There is an inverted U-shaped relationship between the enterprise's cash holding level and the enterprise's value realization ability.The enterprise value realization ability more realistically reflects the enterprise's market performance ability and is a more direct signal that investors in the market are concerned about.The ability to realize corporate value will transition from the original positive correlation to the negative correlation as the company's cash flow holdings continue to increase.This paper supplements the blank about the impact of corporate cash holdings on market value management performance,and improves the research on corporate market value management performance,which is conducive to promoting the optimization of cash holding structure for enterprises and improving the management and management level of GEM enterprises.