Research On The Impact Of Green Income On Cash Holding Of Enterprises

Implementing the new development concept and promoting comprehensive green transformation are the only way to achieve high-quality economic development.Developing green industry is an important measure to promote the green transformation of enterprises.In March 2019,the National Development and Reform Commission and a number of departments jointly issued the Green Industry Guidance Catalogue(2019 Edition),which put forward the development priorities of the green industry and clearly defined the standards for the green industry.The income brought by the development of green industry is green income.At present,there is a lack of research on the influence of green income on enterprise behavior.Therefore,this paper discusses the impact of green income on corporate financial behavior from the perspective of cash holdings,in order to more comprehensively understand the financial decisions in the process of corporate green transformation.This paper selects all A-share listed companies from 2011 to 2020 as research samples to explore the impact of corporate green income on cash holdings.Firstly,the green income of enterprises is defined.According to the requirements of Green Industry Guidance Catalog(2019 Edition),the income from green industry of enterprises is defined as green income,and the proportion of green income of enterprises is calculated as the measurement index of green income.Secondly,the two-way fixed-effect regression model is used to empirically test the relationship between corporate green income and cash holdings.It is found that the green income of an enterprise will significantly reduce the level of cash holdings of an enterprise.Every unit of green income increased by an enterprise will lead to a reduction of 0.045 units of cash holdings.Financing constraint plays a part in mediating effect in this process.That is,the more green income an enterprise has,the smaller the financing constraint it faces,which will affect its cash holding level,and the lower the cash holding level of an enterprise.This result is still significant after robustness and endogeneity tests.Further through the heterogeneity test,it is found that the impact of corporate green income on cash holdings is more significant in enterprises with large scale,small financing constraints,low growth and high default risk.Finally,according to the above research results,some suggestions are put forward to develop the synergy between green industry and corporate financial quality.By studying the influence of enterprise green income on cash holding level,we can clarify the internal logic of the influence of enterprise development of green industry on enterprise financial decisions,help enterprises to carry out cash management while developing green industry,and enhance the ability of enterprise to resist risk and sustainable development.