Institutional Development, State Ownership and Corporate Cash Holdings: Evidence from China

• Main Authors: KUSNADI, Yuanto, YANG, Zhifeng, ZHOU, Yuxiao
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Institutional development; State ownership; Political connections; Cash holdings; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1374; http://dx.doi.org/10.1016/j.jbusres.2014.06.023
• Institution: Singapore Management University

This study examines how institutional development and state ownership influence corporate cash holdings among Chinese firms. The empirical results reveal that firms in provinces with more developed institutions (non-state-controlled firms) hold more (less) cash reserves than those in provinces with...