Can comment letters impact excess cash holdings? Evidence from China

被引：2
|
作者：
Yao, Youfu [1 ]
Hong, Yun [2 ]
机构：
[1] Guizhou Univ Finance & Econ, Sch Accountancy, Guizhou, Peoples R China
[2] Guangdong Univ Foreign Studies, Res Ctr Cross Board & M&A Innovat Strategy, Sch Accounting, Guangzhou, Peoples R China
来源：
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2023年 / 83卷
基金：
中国国家自然科学基金;
关键词：
Comment letters; Excess cash holdings; Twin agency problems; Regulator capture; CORPORATE GOVERNANCE; INTERNATIONAL EVIDENCE; OVER-INVESTMENT; STATE OWNERSHIP; AGENCY PROBLEMS; PRIVATE FIRMS; DETERMINANTS; COSTS; CONSTRAINTS; PERFORMANCE;
D O I：
10.1016/j.iref.2022.11.003
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Using a panel of Chinese listed firms from the 2015-2018 period, we document that firms receiving cash-related comment letters (CLs) experience a decrease in excess cash holdings of RMB 207.61 million (or US$32.15 million). The cross-sectional tests show that the governance effects of cash-related CLs are more pronounced in firms with high levels of managerial entrenchment and high probabilities of controlling shareholder tunneling but are weaker in politically connected firms. Further tests show that auditors' opinions strengthen cash-related CLs' governance effects, and cash-related CLs curb firms' overinvestment due to excess cash holdings.
引用
收藏
页码：900 / 922
页数：23
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