Content area
Abstract
Translation from original language as provided by author
The policy of cash holdings in a company is an important link of the enterprise financial management of the enterprise financial management, cash holdings not only in relation to production and management of the enterprise in daily activities, but also related to other investment, financing and the financial decision-making dividend distribution, and so on. How much cash held by the enterprise, not only by the manager, but also associates with the characteristics which industry the enterprise live in and the corporate governance structure level factors of the enterprise. The paper make empirical research which based on the agency cost theory, the pecking order theory, asymmetric information theory, static tradeoff theory and transaction costs theory as the theoretical basis between corporate governance structure and cash holdings relationship, and based on previous studies, combine with the characteristics of the manufacturing companies, introducing the variables of the institutional investors. Based on the 574 samples of listed companys of manufacturing from year 2005 to 2008 in shenzhen and shanghai city interval, through the analysis of the behavor of the hold of cash and the equivalents, combine with the actual situation of the listed company of manufacturing, we find various important factors which reflects the governance structure of listed companies, then use for reference of some mature achievements of the previous research , introduce some other non-governance structure misc variables which influential to cash holdings for reserch, put forward the relevant research hypothesis. Next, make use of SPSS 15.0 software to analysis 2296 samples. The result of analysis show that: the concentration of equity is positive correlating with cash holdings, the ratio of circulation stock is negative correlating with cash holdings, the ratio of legal persons shares is negative correlating with cash holdings,the ratio of ownership has no significant relationship with cash holdings, the ratio of institutional investors shareholding has no significant relationship with cash holdings, the ratio of State-ownshares and the character of the largest shareholder has no significant relationship with cash holdings, the board size and the independent director proportion have no significant relationship with cash holdings too. The corporate governance of the influence of cash held in China, the conclusion shows that the corporate governance structure and cash holdings has significant influence, but at the same time, China is still not perfect governance structure, management incentive to senior management personnel to produce significant influence, investors are not play their due role of supervision and guidance, enterprise shareholding structure is unreasonable. The empirical research papers in view of the above results, and puts forward how to improve corporate governance structure, including the improvement of equity structure and improve management incentive and how to play the positive role of institutional investors, in order to better advice for cash holdings policy, more effective use of cash this most liquid, the weak profitability of special
