The Investigation of Cash Holding and Short-term Loan

[[abstract]]This study employs the logistic and multivariable regressions to investigate whether operating performance, dividend payout, leverage and corporate governance have influences on enterprise’s cash holding and short-term loan policy. The results shows that enterprises tend to have a large excess cash holding which is positively correlated to short-term loan because of its long age, cash dividend payout and duality of chairman and managing director. Moreover, enterprise prefer to increase its short-term loans when it have a high return on equity, leverage and deviation of earning shares