An Empirical Study on the Effect of the Listed Companies' Corporate Governance Structure on Cash Holdings of the Real Estate

The intensive of management resources makes real estate companies' organizational structure flat and management rights highly centralized. Recently many institutional investors are interested in real estate market, and the intensive of cash is the main feature of real estate companies. How do the uniqueness of organizational structure and the increase of institutional investors affect companies' cash holdings? Based on previous theoretical models,the paper study the effect of the listed companies' corporate governance structure on cash holdings of the real estate, by taking real estate companies' management characteristics into account and adding the ratio of institutional investors shareholding into independent variables. We find that: the concentration of equity is significantly positive correlating with cash holdings; the proportion of institutional investors are significantly negative correlating with cash holdings; the other variables have no significant relationship with cash holdings.