IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v55y2019i7p1656-1668.html
   My bibliography  Save this article

Ownership, Internal Capital Markets, and Cash Holdings

Author

Listed:
  • Zhenkung Wang
  • Yanping Wang

Abstract

Chinese rapid economy development and financial market is not coordinated, so distortions exist in the allocation of credit resources, which often occurs via internal capital markets (ICMs). This article studies the effects of ICMs in China on the distribution of cash resources to enterprises based on operating data of ICM, finding that ICM can significantly reduce cash holdings, especially for private enterprises. Further dividing internal financial transactions by its nature, it is found that non-operating transactions with financing nature can play a significant role in reducing the level of cash holdings.

Suggested Citation

  • Zhenkung Wang & Yanping Wang, 2019. "Ownership, Internal Capital Markets, and Cash Holdings," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(7), pages 1656-1668, May.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1656-1668
    DOI: 10.1080/1540496X.2018.1553710
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2018.1553710
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2018.1553710?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Dongkun & Chen, Yufeng & Miao, Jiafeng, 2022. "Does ICT create a new driving force for manufacturing?—Evidence from Chinese manufacturing firms," Telecommunications Policy, Elsevier, vol. 46(1).
    2. Shah, Muhammad Hashim & Xiao, Zuoping & Abdullah,, 2023. "Internal pyramid structure, judicial efficiency, firm-level governance and dividend policy," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 764-785.
    3. Farrukh Shahzad & Zeeshan Fareed & Bushra Zulfiqar & Umme Habiba & Muhammad Ikram, 2019. "Does abnormal lending behavior increase bank riskiness? Evidence from Turkey," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-15, December.
    4. Shahzad, Farrukh & Fareed, Zeeshan & Wang, Zhenkun & Shah, Syed Ghulam Meran, 2020. "Do idiosyncratic risk, market risk, and total risk matter during different firm life cycle stages?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 537(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1656-1668. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.