Research Of The High-scale Cash Holding And Short-term Borrowing In The Chinese Listed Companies

In this paper, there is a strange situation in the Chinese listed companies - of listed companies from 2003 to 2005 at 3 consecutive years, cash holding to total final assets ratio more than 15% (including 15%), and short-term borrowings to total assets ratio more than 20% (including 20%). Through theoretical analysis we found that the classical theory of the capital structure is difficult to explain it, and there is few evidence in overseas empirical research.Based on the unique credit system and the securities regulatory environment of the transition of Chinese economies, this paper analyzes the interactive effects of the two types of system on the financing and investment behavior of enterprises. Through descriptive statistics and 2 Logistic regression we found that profitability of the high-scale cash holding and short-term borrowing company is more than the other ones, and has a higher risk of debt ratio, as well as with a less agent cost and better growth, and the major shareholders maybe take up many funds of the listed companies. Through multiple linear regression the paper anlyzes the investment behavior of commany and it is impact on the operating results by the perspective of the high-scale short-term borrowings with the excess cash holding. Studies have shown that high-scale cash holding and short-term borrowing companies with excess cash holding have less investment and have the problem of investment shortage ,but, the rational investment behavior is made after balancing the costs and benefits.it also verify the company with excess cash holdings has a better performance under the impact of excess cash holding. When the samples are extended to all the test ones we were also drawn the same conclusion.Finally, according to empirical research findings, the paper strongly recommends that it should develop and improve China's capital market, reduce the finance cost ,in order to solve the unique financial situation of high-scale cash holding and short-term borrowing,which is differ from the classical theory of capital structure.This article studies the corporation characteristics of high-scale cash holding and short-term borrowing from a financial background and management background,and pay attention to the amount of excess cash, especially the impact that the amount of excess cash holdings have on the investment behavior.the study of the motivations of the cash holding and investment, financing behavior ,which combinate the financial background ,management background ,cash holdings, investment behavior and financing behavior,is help to finding problems in decision-making process of cash holdings and using, and provide theoretical and empirical support to avoid the occurrence of self-serving behavior.