Corporate governance and corporate cash holdings: A study of listed private enterprises in China

Abstract

This research focuses on the relationship between corporate governance and corporate cash holdings in Chinese listed private enterprises. The research uses three corporate governance characteristics including managerial ownership, board structure, and controller to measure the relationship. With the Panel data and OLS regression model applied, the coefficient analysis reveals the impact of the managerial relationship on cash holdings will not be affected by board composition and the type of ultimate controller. The empirical results show all of these three characteristics have a significant influence on corporate cash holdings. Board independence and family controller are in a positive relationship with corporate cash holdings. Also, the nonlinear relationship between managerial ownership and cash holdings is further proved.