The determinants and implications of corporate cash holdings in China

Current research on corporate cash holdings is set within the contemporary corporate cash-holding conceptual framework established by Opler et al. (1999), which consist of the static trade-off theory, the pecking-order theory and the free cash-flow theory. Most empirical studies on this area are focused on developed markets. This study is the first investigation to comprehensively examine the determinants and implications of corporate cash reserves in a developing market namely China based upon a sample of publicly listed Chinese firms between 1998 and 2006.