Research On The Impact Of Regulatory Inquiries On Corporate Cash Holding Level

Since 2013,the information disclosure express system has been implemented.After the implementation of the system,the announcements to be issued by listed companies do not need to go through the “pre-checking” of the Stock Exchange,but are transformed into "postinquiring" by the way of inquiry letters.Thus regulatory inquiries have become a highlight of the reform of information disclosure system.According to statistics,among the inquiry letters issued by the Stock Exchange,those related to "cash" account for as high as 74.01%,indicating that the Stock Exchange has paid high attention to the cash situation of listed companies.The implementation of the regulatory inquiry policy provides a research opportunity to explore the effectiveness of the inquiry mechanism on the supervision of corporate cash holding level,and its specific impact,mechanism and economic consequences are worth of further study.Therefore,this thesis takes A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2015 to 2021 as research samples to empirically-analyze and test the relationship between regulatory inquiries and corporate cash holding level,in order to provide experience reference for deepening the reform of regulatory system and optimizing corporate cash holding decisions.Through theoretical analysis and empirical test,this thesis finds that:Regulatory inquiries significantly reduce the level of corporate cash holding level.After alleviating the endogeneity by using fixed effect regression at the control firm level and PSMDID method,the conclusions of this thesis remain valid.In the further analysis,this thesis finds that:(1)Regulatory inquiries mainly reduce reduce the level of corporate cash holding level by improving the quality of information disclosure and reducing agency costs.That is,regulatory inquiries can exert governance effect through information mechanism and supervision mechanism.(2)While reducing the level of corporate cash holding,regulatory inquiries enhance the value effect of corporate cash holding.This indicates that the regulatory inquiries can not only optimize the cash holding level of enterprises,but also promote the improvement of the market value of enterprises.The research of this thesis has certain academic contribution and practical value.First,from the perspective of cash holding level,this thesis provides an exploration of the effectiveness of the Stock Exchange regulatory inquiries,expands the research on the economic consequences of the inquiry policy,and provides empirical support for strengthening the firstline regulatory policy represented by the inquiry letters.Second,this thesis examines the governance effect of regulatory inquiries on corporate cash holding level from the two aspects of information mechanism and supervision mechanism,which enriches the research on the influencing factors of corporate cash holding level and has certain enlightenment for the comprehensive interpretation of corporate cash holding level inquiry governance mechanism.Thirdly,the conclusion of this thesis provides theoretical reference and experience reference for strengthening supervision inquiry,improving supervision efficiency,optimizing enterprise cash holding level,and realizing high-quality economic development.