| As the blood of development,cash has become the lifeline of the enterprises'survival.Being the most floating but the least profitable corporation asset,the decision making of cash holding has been considered as one of the most important part of corporation financial strategies.In terms of corporation,cash flow has evolved into an indispensable part when it refers to corporations' normal operation,a corporation will be confronted with bankruptcy risk and easily find itself in financial distress,if the corporation lacks sufficient cash holdings.Relevant issues regarding cash holding not only have great influences on corporations' policies of operating management,but also turn into vital topic in the area of theoretical researching for both domestic and overseas financial management.In recent decades,the idea of"cash first" is highly favored,particularly,western scholars have proposed balance theory,pecking order theory of financing and agency theory when it talks about the area of cash holding.Meanwhile,they have discussed in combination with external environmental factors.There are a large quantity of factors that can affect cash holding levels.Primarily,it involves micro-finance factors and governance structure,for instance,financial leverage,cash flow,firm size and so forth.Due to the fact that corporations play the role of economic entities which are closely related to the external circumstance and able to swap with it,it is essential for us to take macro-environment faced by companies into special consideration as well.The difference in the growth,as a key character in firms,has decided the development and investment opportunities,also,it is one of the field which is worth studying.In general,it is argued that there are three motivations for enterprises to retain cash:transaction motive,prevention motive and agency motive,enterprises who grow better are inclined to hold more cash in case of losing better investment opportunities due to a low cash holding level.Based on the these thoughtfulness and starting from the perspective of enterprises'growth,first of all,this dissertation has tried to research the influence on cash holding level generated by enterprises' growth.And then monetary policy has been incorporated.The regulating effect of monetary policy on the relation between cash holding level and enterprises' growth has been explored.Last of all,this paper has divided all the sample into state-owned enterprises and non state-owned enterprises,in order to distinguish nature of property right.So the regulating effect of monetary policy on enterprises' growth and cash holding level can be explored separately,under different circumstances.This paper's research structure is demonstrated as follows.The first part is introduction,which mainly introduces the background and significance of the study.And then relevant cases regarding listed firms,cashing holding activities have been derived.The introduction has illustrated the importance of cash,specified the primary research content,as well as the research methods and the probable academic contributions.The second part involves concept definition and literature reviews,concept definition aims at stating the content of this research,while literature reviews aim at combing the existing research results.Primarily,it involves the following aspects,like motives of cash holding,factors which can influence cash holding level mainly include macro level and micro level,firms' external environmental factors and internal governance factors.Through summarizing predecessors' research findings,this paper's study will be further carried out.The third part is theoretical analysis and research hypothesis.In this part,relevant arguments about cash holding level have been firstly introduced.Based on these arguments,this paper has conducted a theoretical analysis as to the relation between enterprises' growth and cash holding level,for the benefit of putting forward the hypothesis.Besides,the potential influence of monetary policies and the nature of the property right on the relation of the two,have been taken into consideration as well.The fourth part is sample selection and model designing,this part has illustrated the sample data and variables used in this paper,in the light of the illustration,the hypothesis will be verified.The fifth part is empirical test.This paper has selected the data deriving from 15,328 A-share listed companies during 2007-2015 as this paper's research sample.Combing with method of normative research and comparative analysis,an empirical research has been carried out through applying EXCEL and STATA,in particular,descriptive statistical analysis,test of inter-group difference,correlation analysis and multivariate regression analysis have been utilized to verify the hypothesis of this paper,at last a robustness test has been conducted.The sixth part is research conclusion and expectation.This part has derived conclusions based on data analysis results,moreover,this paper has put forward potential recommendations in the perspective of domestic country situation and development condition,and at last the limitations and shortcomings of the research have been conducted by this paper,as well as the further research assumptions.The paper's empirical results have indicated:(a)There is significant correlation between the growth of enterprises and cash holding level.(b)Comparing to the period of monetary easing,cash holding level tends to remain higher during the period of monetary tightening.(c)Comparing to the period of monetary easing,monetary tightening policy tends to strengthen the positive effect on cash holding level generated by the growth of enterprises,(d)Comparing with state-owned enterprises,non state-owned enterprises are more sensitive to the effect of money policy changes on the relation of the two.This paper's probable academic contribution is expected to make in following two aspects.(a)In recent years,scholars have conducted a study on strategies of cash holding in depth,however,most of these existing literatures have ignored the action mechanism and the influence on cash holding level generated by enterprises' growth difference.The difference of enterprises' growth is one important factor that can have a great impact on firms' choice of financial policies,more importantly,the result of financial decision makings will directly affect firms' product market competition condition,as well as future's development tendency.Thus the research on the correlation between cash holding level and enterprises' growth is particular significant.(b)As more and more researches have started to expand from firms'micro-perspective to the perspective of external environment,the influence on the relation of the two which is generated by various monetary policies seems to be worth studying.To be more specific,this paper has done separate research regarding the influence on the relation between enterprises' growth and cash holding level caused by monetary easing policy,as well as by monetary tightening policy.Meanwhile,the nature of the property right has been distinguished,and finally objective conclusions regarding enterprises' growth and cash holding level under various circumstance have been reached.This paper's research results not only enable business managers to react to the changes of monetary policies in time,and thus feasible financial decision makings and management recommendations will be made.But also it provides relevant policy suggestions for the country,while the country is trying to regulate and control their micro-economic entity through applying macro-monetary policy.On the one hand,our country is in the key stage of high-speed economic development,as well as in the key stage of optimization and upgrading of industrial structure,the government is supposed to well utilize the advantage of market and develop the potential of enterprises.On the other hand,this paper argues the theoretical basis and action mechanism influenced by listed companies' growth opportunities and cash holding level,which has not only enriched the existing theories,but also explored the correlation between macro-economic policies and firms' micro-behavior,and this paper's study will probably pave the way for further researches. |
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