Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2073249
The influence of institutional fragility on corporate cash holdings: evidence from China
Xinli Li
Xiaodong Li
Jun Cheng
Jiaying Li
Zhenyang Zhao
Sažetak
This study examines the relationship between institutional fragility
and corporate cash holdings. Using data from China between
2004 and 2017, we find that institutional fragility is associated
with increased corporate cash holdings. The relationship is stronger
for non-state-owned enterprises and stronger when firms
have no relationship with banks. Furthermore, we find that institutional
fragility reduces current investment opportunities, leading
to an increase in corporate cash holdings. Investment opportunities
play an intermediary effect; hence, institutional fragility affects
corporate cash holdings
Ključne riječi
Institutional fragility; cash holdings; the bank–firm relationship; property right nature; investment opportunity
Hrčak ID:
303726
URI
Datum izdavanja:
31.3.2023.
Posjeta: 182 *