Associate Professor Yong Huang, a researcher of the Base,has published a paper titled "Multiple large shareholders and cash holdings: Evidence from China" in International Review of Financial Analysis.

Abstract:We examine the governance role of multiple large shareholders (MLS) in the context of corporate cash holding policy. Using a sample of Chinese firms, we find strong evidence that the presence of MLS increases the level of cash holdings. This relationship is robust across alternative measures of key variables, model specifications, and identification strategies. The positive impact of MLS on cash holdings is more pronounced in firms with more investment opportunities, higher financial constraints, greater risk-seeking behavior, non-state control, better investor protection, and more related party transactions. Overall, the findings suggest that: (i) the large cash holdings of firms with MLS do not necessarily indicate the (in)effectiveness of MLS in corporate governance, and (ii) the presence of MLS ensures that the cash holdings of growth firms can be used in favor of large shareholders.

Keywords: Multiple large shareholders; Corporate cash holdings; Agency problems

Link: https://erj.ajcass.com/#/issue?id=122073&year=2025&issue=12

Author profile

Yong Huang, Associate Professor of Financial Management, School of Accounting, Zhongnan University of Economics and Law, PhD in Economics, Kyushu University, Japan. His research interest covers empirical corporate finance and behavioral corporate finance. Papers have been published in the Journal of Corporate Finance, International Review of Economics and Finance, International Review of Financial Analysis and Pacific-Basin Finance Journal.  He is an anonymous reviewer of journals such as Journal and Finance Research Letters, International Review of Economics and Finance, International Review of Financial Analysis, and Pacific-Basin Finance.