Monetary Policy, Debt Maturity and Cash Holdings

DOI

10.2991/aebmr.k.191217.164How to use a DOI?

Keywords

debt maturity structure, cash holding, monetary policy

Abstract

This paper combines debt maturity, monetary policy and cash holdings into the same analytical framework. Taking 835 A-share non-financial listed companies in Shenzhen and Shanghai as samples, we empirically analyzed through the simultaneous equation model and found that: company cash holding’s possibility and debt period are determined endogenously. The shorter the company’s debt maturity, the higher the refinancing risk, the more cash holdings; when the monetary policy is tightened, the listed company will increase cash holdings with caution. In the period of tight monetary policy, the cash holdings of listed companies with short debt maturities and high refinancing risks have increased more. Finally, further research in this paper shows that compared with state-owned enterprises, the cash holdings of non-state-owned enterprises are more affected by the debt maturity structure and monetary policy.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hujie
PY  - 2019
DA  - 2019/12/20
TI  - Monetary Policy, Debt Maturity and Cash Holdings
BT  - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)
PB  - Atlantis Press
SP  - 955
EP  - 962
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191217.164
DO  - 10.2991/aebmr.k.191217.164
ID  - 2019
ER  -