An analysis of customer change, government support, and cash holdings. (19th January 2022)

• Record Type: Journal Article
• Authors: Wen, Xuqian; Ye, Yong
• Is Part Of: International journal of engineering business management. Volume 14(2022)
• Publication Date: 2022-01-19
• Subjects: Customer change -- government subsidies -- preferential taxation -- cash holdings -- manufacturing companies -- Jel classification: G18; G30; Engineering -- Periodicals; Industrial management -- Periodicals; Engineering; Industrial management; Periodicals; 620.0068
• DOI: 10.1177/18479790211045215
• Languages: English
• ISSNs: 1847-9790

Abstract

This paper uses a research sample listed manufacturing companies in China and systematically studies the impact of customer change and government support on corporate cash holdings and economic consequences. The empirical results show that there is a significant positive correlation between customer change and cash holdings, and the value of cash holdings is higher among enterprises with customer changes. This study enriches and expands the literature on customer relations and cash holdings, and we confirm the important practical significance of government support for the development of the manufacturing industry.