A Study On The Impact Of The Reform Pilot Of State-owned Capital Investment And Operation Companies On The Cash Holding Of Enterprises

The reform of state-owned assets supervision is of great significance to China’s economic development.In order to strengthen and improve the system of state-owned assets supervision,the first pilot reform of state-owned capital investment and operation companies was established in 2014.After COFCO Group and China Development Group,as the first batch of central enterprises,carried out the reform of state-owned capital investment and operation companies,many central and local enterprises successively carried out the pilot reform of state-owned capital investment and operation companies,Establish a three-layer state-owned asset supervision structure consisting of the State Council/Local State owned Assets Supervision and Administration Commission,State owned Capital Investment and Operation Companies,and Central/Local State owned Enterprises.State owned capital investment and operation companies have separated the State owned Assets Supervision and Administration Commission from state-owned enterprises,improving their marketization level and corporate governance capabilities.Existing research has focused on the impact of the pilot reform of state-owned capital investment and operation companies on inefficient investment,corporate performance,executive compensation sensitivity,and corporate innovation.However,there is still a gap in research on the impact of the pilot reform of state-owned capital investment and operation companies on corporate cash holdings.As an important financial decision of a company,cash holding decisions play a crucial role in the survival and decline of enterprises.This article specifically uses the A-share non-financial listed companies of state-owned enterprises from 2011 to 2021 as a research sample,based on principal-agent theory,financing prioritization theory,trade-off theory,and related research analysis to explore the mechanism of state-owned capital investment and operation company reform pilot affecting corporate cash holding behavior,and empirically tests the impact of state-owned capital investment and operation company reform pilot on corporate cash holding behavior optimization,This article describes the cash holding behavior of enterprises from two aspects: the adjustment speed of cash holding and the deviation degree of cash holding.The research finds that the pilot reform of state-owned capital investment and operation companies has optimized the cash holding behavior of state-owned enterprises,including significantly improving the adjustment speed of cash holding in state-owned enterprises and reducing the deviation degree of enterprise cash holding level from the target cash holding level.The above conclusion is still valid after a series of robustness tests.The mechanism test found that the pilot reform of state-owned capital investment and operation companies promoted the speed of cash holding adjustment and reduced the degree of cash holding deviation by improving corporate governance;The pilot project promotes the adjustment speed of enterprise cash holdings by improving the investment efficiency of enterprises.This article not only enriches empirical research on the pilot reform of state-owned capital investment and operation companies and related research on cash holdings,but also provides reference for further deepening the reform of state-owned enterprises.