Factors Influencing the Cash Holdings of Manufacturing Companies in China

DOI

10.2991/978-94-6463-054-1_78How to use a DOI?

Keywords

Cash holdings; Economic environment; Macroeconomic policies; Corporate governance

Abstract

China has entered a new normal in economic development. Although China continues to maintain the title as the world’s largest manufacturing country, the manufacturing companies also faces many difficulties, one of which is to determine an appropriate cash holding level. By combing the domestic and foreign literature, this paper discusses the factors influencing the cash holdings of Chinese manufacturing companies from three aspects: economic environment, macroeconomic policies and corporate governance, and specifically the influence mechanisms of economic cycle, soft budget constraint, monetary policy, fiscal policy, industrial policy, and agency problem are analysed. We find that these factors can affect the cash holding behaviours of Chinese manufacturing companies to a certain extent.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Huadong Xiao
PY  - 2022
DA  - 2022/12/14
TI  - Factors Influencing the Cash Holdings of Manufacturing Companies in China
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 717
EP  - 725
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_78
DO  - 10.2991/978-94-6463-054-1_78
ID  - Xiao2022
ER  -