The Relationship between Cash Holdings and Cash Flow Based on Chinese Market Data
Cash is the most liquid and least profitable asset. In order to maximize shareholder value, transaction costs theory and asymmetric information theory discuss the relationship between cash holdings and cash flows, that is static cash and dynamic cash, but the two theories get contradictory conclusions. In this paper the relationship between cash holdings and cash flows was examined by empirical study based on 5900 data sample of Chinese listed firms. The results show that cash holdings is significant positive related to net operating cash flow, net investing cash flow and net financing cash flow, and the larger the scale of the company, the greater the sensitivity of cash holdings to net cash flow from investing activities.
cash holdings cash flow net investing cash flow
ZHANG Yuemei ZHU Yan
School of Management, Dalian University of Technology, Dalian, China, 116024
国际会议
大连
英文
669-673
2012-07-07(万方平台首次上网日期,不代表论文的发表时间)