Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)

Factors Influencing the Cash Holdings of Manufacturing Companies in China

Authors
Huadong Xiao1, 2, *
1Business School, Jianghan University, Wuhan, 430056, China
2Manufacturing Industry Development Research Center on Wuhan City Circle, Wuhan, 430056, China
*Corresponding author. Email: hd_xiao@163.com
Corresponding Author
Huadong Xiao
Available Online 14 December 2022.
DOI
10.2991/978-94-6463-054-1_78How to use a DOI?
Keywords
Cash holdings; Economic environment; Macroeconomic policies; Corporate governance
Abstract

China has entered a new normal in economic development. Although China continues to maintain the title as the world’s largest manufacturing country, the manufacturing companies also faces many difficulties, one of which is to determine an appropriate cash holding level. By combing the domestic and foreign literature, this paper discusses the factors influencing the cash holdings of Chinese manufacturing companies from three aspects: economic environment, macroeconomic policies and corporate governance, and specifically the influence mechanisms of economic cycle, soft budget constraint, monetary policy, fiscal policy, industrial policy, and agency problem are analysed. We find that these factors can affect the cash holding behaviours of Chinese manufacturing companies to a certain extent.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2022
ISBN
978-94-6463-054-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-054-1_78How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Huadong Xiao
PY  - 2022
DA  - 2022/12/14
TI  - Factors Influencing the Cash Holdings of Manufacturing Companies in China
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 717
EP  - 725
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_78
DO  - 10.2991/978-94-6463-054-1_78
ID  - Xiao2022
ER  -