A Study On The Impact Of Ownership Structure To Cash Holdings Of Chinese Private Listed Companies

Since the reform and opening up, great changes of China (?) economy have taken place and the private economy have progressed rapid development in this period, the private listed companies have become new forces of China's security markets, which play a more and more important role in ChinaN capital market. Cash holding is an important field in the corporate finance; many western scholars have paid attention to this field for different degrees. Through an empirical research on the influence from the shareholding structure to cash holdings in private listed companies, this paper hope improve private equity structure to strengthen the management of cash holdings through research results and analysis from private listed companies.This paper first reviews the general theories and related research on the cash holdings, and analyzes the current situation of cash holdings of ownership structure in private listed companies. Secondly, selects private listed companies from the year 2005 to 2009 as the research sample and constructs the regression analysis model by selecting five indicators and eight financial indicators that reflect cash holdings and enterprise shareholding structure. Using the correlation analysis and regression analysis and studying the impact of ownership structure to cash holdings of Chinese private listed companies. Research results show that, the shareholding structure in proportion and cash holdings are negatively correlated at 5% significant level in the private listed companies; executivesN shareholding, equity concentration, the ownership balance degree and cash holdings are positively correlated at 1% significant level; correlative tradable proportion and cash holdings are positively correlated, but they didn't pass significant test. Through further regression analysis, this paper concludes that the influence from the shareholding structure to cash holdings in private listed companies varies due to different industries. Finally, this paper combines the current analysis results in private ownership structure of listed companies and the present situation of the private listed companies and propose suggestions such as reducing equity concentration, building mutual balanced shareholding structure, improving the management incentive and restraining mechanisms and perfecting the legal protection of small and medium shareholders environment, in the hope of improving cash countermeasures and management efficiency.