Proceedings of the 2022 2nd International Conference on Business Administration and Data Science (BADS 2022)

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An Empirical Analysis of the Influence of the Relationship between Government, Business and Villagers on Cash Holding of Enterprises from the Perspective of Financial Engineering

----From the Computer data of Chinese A-share listed companies

Authors
Dequan Huang1, Junshan Duan2, *
1School of Economics and Management, Kashi University, Kashi, 844000, Xinjiang, China
2Foshan Institute of Modern Service Industry, Guangdong University of Finance and Economics, Foshan, 528199, Guangdong, China
*Corresponding author. Email: duanjunshan@126.com
Corresponding Author
Junshan Duan
Available Online 29 December 2022.
DOI
10.2991/978-94-6463-102-9_121How to use a DOI?
Keywords
Financial engineering; Hometown relations; Corporate cash holdings; Government enterprise relations; Computer data
Abstract

The hometown connection is one of the crucial relationships in China’s relational society. Using the data of A-share listed companies, we examine how hometown connections between corporate executives and local government officials affect corporate cash holdings from the perspective of financial engineering. We find that hometown connections significantly decrease corporate cash holdings. After a variety of robustness tests, this result is still significant. We also find that hometown connections do have a significant impact on corporate cash holdings in provinces with a lower marketization index. One plausible channel for the hometown connections effect is reducing preventive motivation of corporate cash holdings.

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 Business Administration and Data Science (BADS 2022)
Series
Atlantis Highlights in Computer Sciences
Publication Date
29 December 2022
ISBN
10.2991/978-94-6463-102-9_121
ISSN
2589-4900
DOI
10.2991/978-94-6463-102-9_121How 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

risenwbib
TY  - CONF
AU  - Dequan Huang
AU  - Junshan Duan
PY  - 2022
DA  - 2022/12/29
TI  - An Empirical Analysis of the Influence of the Relationship between Government, Business and Villagers on Cash Holding of Enterprises from the Perspective of Financial Engineering
BT  - Proceedings of the 2022 2nd International Conference on Business Administration and Data Science (BADS 2022)
PB  - Atlantis Press
SP  - 1170
EP  - 1182
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-102-9_121
DO  - 10.2991/978-94-6463-102-9_121
ID  - Huang2022
ER  -