Product market liberalization and corporate cash holdings: Evidence from China

被引：0
|
作者：
Lin, Ling [2 ]
Xiao, Min [1 ]
Yao, Rongrong [1 ]
Zhang, Xiaoying [1 ]
机构：
[1] Xiamen Univ, Sch Management, Xiamen, Peoples R China
[2] Univ Massachusetts, Charlton Coll Business, Dartmouth, MA USA
来源：
PACIFIC-BASIN FINANCE JOURNAL | 2024年 / 86卷
关键词：
Product market liberalization; Corporate cash holdings; Market competition; Agency costs; AGENCY COSTS; COMPETITION; GOVERNANCE; OWNERSHIP; DEREGULATION; INNOVATION; DYNAMICS;
D O I：
10.1016/j.pacfin.2024.102468
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Exploiting China's sequential product market liberalization reform as a quasi-natural experiment, we find that market liberalization leads to a reduction in corporate cash holdings. This reduction is attributable to increased competition induced by market liberalization. The disciplinary effect of market liberalization, which curbs firms' opportunistic cash holdings, is more pronounced among firms located in regions with greater local government intervention and those with weaker corporate governance before market liberalization. Overall, we provide novel evidence of how product market liberalization in an emerging economy impacts firms' cash holding strategies.
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收藏
页数：22
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