Empirical Analysis on Determinants of Cash Holdings of China´ Listed Machinery Manufacturing Companies

In this paper, a multiple regression model of China´ listed machinery manufacturing companies is studied. The subject chosen is one, known as not ST or *ST, which is set up with the aid of the multiple regression model. The result shows that financial leverage, investment (capital expenditures), cash substitutes and cash flow volatility are negatively correlated with cash holdings; company size, growth, cash flow and cash withdrawn from circulation are positively related with cash holdings, but the significance is weaker; the cash dividend payment.