The Sensitivity of Corporate Cash Holdings to Corporate Governance

摘要: The average cash holdings of Chinese-listed firms decreased significantly after the split share structure reform in China, which specified a process that allowed previously nontradable shares held by controlling shareholders to be freely tradable on exchanges. reduction is greater for with weaker governance and facing more financial constraints prior reform. also reduced corporate savings rate, as measured cash-to-cash-flow sensitivity. These findings are consistent premise removed significant market friction, led better incentive alignment between minority relaxed constraints. Additional analyses show affects firms' management policies, investment decisions, dividend payout financing choices differently private than state-owned enterprises. Author 2012. Published Oxford University Press behalf Society Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oup.com., Press.