Groups of Companies, Cash Holdings Level and Credit Risk
- 10.2991/febm-18.2018.5How to use a DOI?
- Groups of companies; Cash holdings level; Credit risk; Ownership property
Based on KMV model, this paper empirically studies the internal relationship between groups of companies, cash holdings level and credit risk, and tentatively explores the intrinsic mechanism between cash holdings and credit risk of state-owned groups of companies. The research shows that :(1) compared with companies with independent legal persons, the cash holdings level of listed subsidiaries of groups of companies is lower, and the cash holdings level of state-owned and private groups of companies is significantly different;(2) the cash holdings level of listed companies is negatively correlated with the credit risk, but the state-owned ownership property weakens the relationship;(3) at the groups of companies level, the negative correlation between cash holdings level and credit risk is only maintained in the groups of companies with private ownership property.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Xiaofeng Xie AU - Kai Xu AU - Yang Yang AU - Zongfang Zhou PY - 2018/12 DA - 2018/12 TI - Groups of Companies, Cash Holdings Level and Credit Risk BT - Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018) PB - Atlantis Press SP - 18 EP - 23 SN - 2352-5428 UR - https://doi.org/10.2991/febm-18.2018.5 DO - 10.2991/febm-18.2018.5 ID - Xie2018/12 ER -