Economic Policy Uncertainty, Shareholding Insurance Companies and Corporate Cash Holdings

Based on the data of listed companies from 2006 to 2016, we empirical examine the adjustment effect of the shareholding insurance company between economic policy uncertainty and cash holdings. The results show that the increase in economic policy uncertainty will significantly promote the increase in corporate cash holdings, while the participating insurance companies can alleviate the economic policy uncertainty to promote the company's cash holdings. The above results show that in the environment of large fluctuations in China's economic policies, the combination of industry and finance can help alleviate the problem of financing constraints and information asymmetry, reduce the impact of uncertainty on the daily operations of enterprises.