Research On Evolvement Of Marketization And Dynamic Adjustment Of Corporate Cash Holdings

In this paper, I choose a sample of1999-2012companies listed in Shanghai and Shenzhen A stock market as our research object, from cash holdings to adjust the speed and the actual cash holdings from the target level of cash holdings two aspects of the process of its investigation of the market changes on cash holdings of listed companies behavior. The results showed that:the higher the degree of market, the faster the adjustment of cash holdings, and the dynamics of the process from the market point of view, increased degree of market faster, the faster adjustment of cash holdings. Meanwhile, the higher the degree of market, the actual cash holdings from the target the lower level of cash holdings. Distinguish between corporate cash holdings further research shows that excess cash holdings relative to the company, the market for corporate cash holdings process of adjusting the speed and degree of influence from the target cash holdings in companies that lack the performance is more obvious.