Do State Ownership and Political Connections Affect Precautionary Cash Holdings for Customer Concentration? Evidence from China
研究中国制造业上市公司中，国有股权和政治关联如何影响客户集中度与现金持有的关系，发现非国有企业客户越集中现金越多，但政治关联会削弱这一效应。
This paper examines whether state ownership and political connections affect the relationship between customer concentration and cash holdings for Chinese listed manufacturing firms. We show that non‐state‐owned firms, but not state‐owned firms, hold more cash as customer concentration increases. In addition, political connections weaken the positive effect of customer concentration on non‐state‐owned firms’ cash holdings. Our supplemental analyses further show that for non‐state‐owned firms with limited access to finance—for instance, firms with low analyst following, low institutional ownership, or low government subsidies—the effects of political connections on weakening the positive association between customer concentration and cash holdings are more pronounced. Additional robustness tests support our arguments.