Bank Equity Connection,Monetary Policy Change and the Cash Management of Listed Firms
研究发现，与银行有股权关联的中国上市公司持有更少现金，在货币政策收紧时现金调整幅度更低，且融资策略不同，支持银行股权关联的信息优势假说。
Instability and frequent adjustment of monetary policy are common for China's capital market.Therefore firms build up connection with bank to reduce the adjustment cost caused by institutional change.This study examines the effect of firms' bank-equity-connection(BEC) on the cash management under the circumstance of monetary policy change.The empirical results demonstrate that the firms with equity connection to banks maintain a smaller amount of cash than that of without bank equity association.When monetary policy becomes tighter,the cash holding and cash adjustment by BEC firms are lower.Further study indicates that the financing strategy of BEC firms to maintain cash are significantly distinguished from that of firms with no bank equity association;hence exert different influences on company values.Our conclusion suggests that in China's environment of bank-based financial market,connections with banks are beneficial for the firms with higher efficiency of cash management,smaller uncertainty of policy change,and less financing constraint,our findings support the view of information advantage hypothesis in bank-equity association theory.