Resource Allocation Strategy and Corporate Cash Holdings

Abstract

Abstract: Based on A-share listed companies from 2007 to 2019, this paper examines the impact of resource allocation strategy on corporate cash holdings. The empirical study finds that compared with investment-oriented enterprises, operation-oriented enterprises tend to hold more cash. Further tests show that the nature of property rights and market position have significant moderating effects on the relationship between resource allocation strategy and cash holdings respectively; investment opportunities and internal financing constraints play a partial intermediary role in the impact of resource allocation strategy on corporate cash holdings. This study not only expands and improves the theoretical understanding of cash holdings, further enriches the research literature in related fields, but also has a certain reference significance for enterprises to optimize cash holdings, improve capital utilization efficiency and enterprise value.

Key words: resource allocation strategy, cash holding, market position, investment opportunities, internal financing constraints

Peng Aiwu, Zhang Xinmin. Resource Allocation Strategy and Corporate Cash Holdings[J]. Management Review, 2023, 35(2): 318-327.

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