Excess cash holdings and Innovation based on OLS model

摘要

Based on the annual reports of listed A-share companies in China from 2012 to 2017, this paper takes the impact of the common phenomenon of excess cash holdings on the innovation and development of enterprises as the research point to study the relationship between the above them. Through this study, this paper finds that excess cash holdings have a significant positive effect on innovation. At the same time, compared with state-owned enterprises, there is also a significant positive correlation between excess cash holdings of non-state-owned enterprises and enterprise innovation. This study not only provides empirical evidence for enterprises to promote innovation by holding excess cash, but also provides theoretical guidance for enterprises to improve the use efficiency of excess cash holdings, and also provides certain theoretical basis for regulators to continue to strengthen supervision of state-owned enterprises.