Corporate Cash Holdings: An Empirical Investigation in Listed Publishing Companies in China

Abstract

This paper investigates the empirical determinants of cash holdings in selected 13 listed publishing companies during 2012 to 2017 year in China. It finds that financial leverage, cash substitutes have a significant negative relation with the level of cash reserves, and ownership concentration exerts a significant positive impact on cash holdings for all sample companies. For the high-growth listed publishing companies, the result reveals that the cash flow and the debt maturity have a significant influence on cash holdings; for the low-growth listed publishing companies, the capital expenditures have a weak impact on cash holdings. Finally, it points out that listed publishing companies should adjust capital structure, increase investment in short-term securities, perfect the corporate governance structure, and correctly handle the relationship between the growth and cash holdings, etc.