Abstract：This paper applies descriptive statistics, independent-samples T-Test, and regression methods to analyze the influence of main corporate governance structural factors on cash retention ratio, under the situations that financial variables are controlled and non-controlled respectively. The samples collected cover the corporate governance structural and financial data of listed companies in Beijing, with a time span from 2005 to 2011. The empirical result is in accordance with the assumption that a better corporate governance structure result in a lower cash retention ratio. Furthermore, this paper discusses and proposes measures to improve corporate governance structure in order to lower the cash retention ratio, and to raise cash efficiency.
Keywords: Listed Company, Governance Structure, Cash
source:Finance & Trade Economics ,No5,2013