Hedging Device or Entrenchment Device? Evidence on the Cash Holding Motives of Chinese Listed Companies

摘要：

This paper investigates the cash holding motives of Chinese listed companies through examining the role of cash holdings on the investment-cash flow sensitivity. We find that the cash holdings of the small and medium sized SOEs play significant role to mitigate the extent of financial constraints, while the large local SOEs are more likely to over-invest and hold cash as an entrenchment device. The results also suggest that the cash holdings of the private enterprises play significant entrenchment effects and exacerbate overinvestment.

关键词： Hedging entrenchment Cash holdings Investment-cash flow sensitivity China

作者: Luo Qi Lei Ming Wang Junliang

作者单位: School of Management, Huazhong University of Science and Technology P.R.China, 430074

会议类型: 国际会议

会议名称: 第六届管理学国际会议(Proceedings of ICM2007 the 6th International on Management)

会议地点: 武汉

会议语种:英文

页码: 794-799

在线出版日期: 2007-08-03（万方平台首次上网日期，不代表论文的发表时间）