The firm-specific determinants of cash holdings: evidence from China listed firms
This paper investigates the firm specific predictors of corporate cash holdings for a sample of 716 China listed firms over the period from 2006 to 2013. The hypothesis raised on the basis of the trade-off model, the pecking-order theory as well as the free cash flow theory which are extensively use...
| Main Author: | |
|---|---|
| Format: | Dissertation (University of Nottingham only) |
| Language: | English English English |
| Published: |
2017
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/45782/ |
| _version_ | 1848797192206155776 |
|---|---|
| author | WEN, SHIJIE |
| author_facet | WEN, SHIJIE |
| author_sort | WEN, SHIJIE |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper investigates the firm specific predictors of corporate cash holdings for a sample of 716 China listed firms over the period from 2006 to 2013. The hypothesis raised on the basis of the trade-off model, the pecking-order theory as well as the free cash flow theory which are extensively used in previous researches. The results reveal that larger firms or firms with greater growth opportunities have preferences to accumulate cash while firms with higher leverage including a larger amount of bank debts, firms with more cash flows or firms pay dividends tend to hold less cash. However, the results also show evidence that financial distress and ownership are not important factors in determining cash holdings. Besides, I find that the overall effect of leverage, bank debt, cash flow and investment opportunity becoming weaker in the post-crisis period (2009-2013) and private firms’ cash holding policies are more sensitive to the financial crisis than state-owned enterprises’. This may be attributed to the tightening of external financial markets and meanwhile, creditors’ increased prudence of lending.
Keywords: Cash holdings, firm specific determinants, financial crisis |
| first_indexed | 2025-11-14T19:59:58Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-45782 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T19:59:58Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-457822018-06-05T17:06:09Z https://eprints.nottingham.ac.uk/45782/ The firm-specific determinants of cash holdings: evidence from China listed firms WEN, SHIJIE This paper investigates the firm specific predictors of corporate cash holdings for a sample of 716 China listed firms over the period from 2006 to 2013. The hypothesis raised on the basis of the trade-off model, the pecking-order theory as well as the free cash flow theory which are extensively used in previous researches. The results reveal that larger firms or firms with greater growth opportunities have preferences to accumulate cash while firms with higher leverage including a larger amount of bank debts, firms with more cash flows or firms pay dividends tend to hold less cash. However, the results also show evidence that financial distress and ownership are not important factors in determining cash holdings. Besides, I find that the overall effect of leverage, bank debt, cash flow and investment opportunity becoming weaker in the post-crisis period (2009-2013) and private firms’ cash holding policies are more sensitive to the financial crisis than state-owned enterprises’. This may be attributed to the tightening of external financial markets and meanwhile, creditors’ increased prudence of lending. Keywords: Cash holdings, firm specific determinants, financial crisis 2017-09-11 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45782/1/The%20determinants%20of%20cash%20holdings.pdf application/pdf en https://eprints.nottingham.ac.uk/45782/2/The%20determinants%20of%20cash%20holdings.pdf application/pdf en https://eprints.nottingham.ac.uk/45782/3/The%20determinants%20of%20cash%20holdings.pdf WEN, SHIJIE (2017) The firm-specific determinants of cash holdings: evidence from China listed firms. [Dissertation (University of Nottingham only)] This dissertation focuses on investigating the determinants of cash-holding decisions of China listed firms. |
| spellingShingle | This dissertation focuses on investigating the determinants of cash-holding decisions of China listed firms. WEN, SHIJIE The firm-specific determinants of cash holdings: evidence from China listed firms |
| title | The firm-specific determinants of cash holdings: evidence from China listed firms |
| title_full | The firm-specific determinants of cash holdings: evidence from China listed firms |
| title_fullStr | The firm-specific determinants of cash holdings: evidence from China listed firms |
| title_full_unstemmed | The firm-specific determinants of cash holdings: evidence from China listed firms |
| title_short | The firm-specific determinants of cash holdings: evidence from China listed firms |
| title_sort | firm-specific determinants of cash holdings: evidence from china listed firms |
| topic | This dissertation focuses on investigating the determinants of cash-holding decisions of China listed firms. |
| url | https://eprints.nottingham.ac.uk/45782/ |