Multiple Large Shareholders and Corporate Cash Holding
Taking Chinese A-share listed companies from 2008 to 2018 as a research sample,we empirically examine the effect and mechanism of multiple large shareholders on corporate cash holding behavior.The study finds that the coexistence of multiple major shareholders in-creases firms'cash holdings,and that this increase is mainly due to the precautionary and stra-tegic motives of the major shareholders;its effect is more pronounced in privately owned firms and in regions with a high degree of marketization.Such"high holdings"are not the result of a"conspiracy"among major shareholders;rather,multiple major shareholders'equity structure enhances firm value by increasing firm cash holdings.As a result,listed companies should con-sider their own corporate characteristics,introduce the governance mechanism of multiple major shareholders coexisting,and play an active corporate governance role of major shareholders;at the same time,they should maintain sufficient cash reserves to seize market opportunities and gain an advantageous position in the competition.
Multiple large shareholdersPreventive motivationStrategic motivationFirm value
万方数据
维普
