Analysis Of The Impact Of Excessive Cash Holding Of Listed Companies In Textile Industry On Business Efficiency

At present,China’s manufacturing industry is undergoing transformation.The Central Economic Work Conference plans to accelerate the development of manufacturing industry towards higher quality as part of the key tasks in 2019.In this context,it is becoming more and more common for companies to hold large amounts of cash in manufacturing,and cash holdings play an important role in the company’s operations and development.Therefore,it is of great practical significance to study the effect of this phenomenon on the operating efficiency of the enterprise.Whether this effect is positive or negative,how to improve the operating efficiency of the enterprise through the analysis of excess cash holdings is a problem that needs to be solved.While most scholars analyze issues related to business efficiency,they basically use the entire manufacturing industry as a sample for analysis.The manufacturing industry is subdivided into multiple industries.Taking into account the differences of each subdivision industry,in order to make the research results more accurate and targeted,the research sample is detailed into the textile industry.Taking the financial panel data of A-share listed textile companies in Shanghai and Shenzhen from 2014 to 2018 as the research object,and based on the measurement model of Opler’s excess cash holdings,the deterministic statistics and correlation studies of the influencing factors of cash holdings are first performed.Based on the results of the model,companies are divided into three samples: forward excess cash holdings,temporary excess cash holdings,and continuous excess cash holdings.Multiple regressions are performed with DEA-calculated operating efficiency.First of all,the panel data of positive excess cash holdings is brought into the model,which aims to analyze the impact of excess cash holdings on the operating efficiency of listed textile companies,and secondly,the data of temporary excess cash holdings and continuous excess cash holdings This model is introduced to explore the efficiency difference caused by the persistence of excess cash holdings,in order to explore which of the temporary excess holdings and continuous excess holdings is more conducive to the operation of the enterprise.Listed companies in the textile and apparel industry provide appropriate policy advice.Based on the support of related theories,this article proposes four assumptions.The first two are: the excess cash holding has a positive(or negative)impact on the operating efficiency of the listed textile enterprises;the latter two are: continuous excess holdings than temporary excess holdings The impact of holdings on the operating efficiency of a business is more significant(or less significant).After empirical analysis of multiple regression,the two hypotheses in this article were verified,and the conclusions were: first,the operating efficiency of listed textile companies increased significantly with the increase in excess cash holdings;second,the temporary excess holdings The positive effect of enterprises on operating efficiency is more significant than that of enterprises that are continuously held excessively.Finally,based on the conclusions,this article puts forward rational recommendations for the listed textile enterprises holding excessive cash from three aspects:policy orientation,regulatory perspective,and business operation perspective.