Skip to content
DraconiticResearch
Search Sources API
203,234 studies31 sourcesUpdated 17 min ago
Peer-reviewedCC BY 4.0PLOS One

Cross shareholders and corporate cash holdings: Empirical evidence from Chinese listed companies

  • Yili He1
  • Xihe Liu2
  1. 1School of Advanced Accounting and Auditing, Shanghai University of Finance and Economics, Shanghai, China
  2. 2School of Economics, Shanghai University, Shanghai, China
Open at sourcePDFDOICite

Abstract

Cross shareholders have become a common phenomenon in capital markets, which increasingly draw the attention of scholars. This paper examines the effect of cross shareholders on corporate cash holdings in Chinese capital market and finds cross shareholders increase corporate cash holdings. Further mechanism analyses find suggestive evidence that this increase is correlated with reductions in overinvestment and improvements in total asset turnover. Additional results show the effect of cross shareholders has heterogeneous significance given the conditions of different external environment and firm characteristics. Moreover, cross shareholders reinforce the positive effect of cash holdings on firm productivity. Overall, this paper’s findings provide insight for understanding the role of cross shareholders in corporate cash holding decision in China.

Related

  1. An Interaction-Aware Decision Framework for FDIC-Assisted Distressed Bank Acquisitions: Empirical Evidence from the FDIC Failed-Bank Panel and the SVB-First Citizens Case
    Yousef Nejatbakhsh, Malihe Aliasgari, Parsa Safaee +1
    arXivPreprintarXiv licenceFull textStatisticsarXiv
  2. Certification and the corporate burden: effective tax rates across three regulatory regimes in Italian small firms
    Angelo Leogrande, Mauro Di Molfetta, Valeria Notarnicola +2
    HALPreprintCC BY 4.0Full textEnvironmental science & pollutionStatisticsHAL
  3. Empirical Bernstein in smooth Banach spaces
    Diego Martinez-Taboada, Aaditya Ramdas
    The Annals of Applied ProbabilityPeer-reviewedLicence not statedFull text16 citedStatisticsOpenAlex
  4. Impact of Feature Scaling on the Convergence Speed of Linear SVM Solvers : An Empirical Benchmark
    Mamadou Sow, Christophe Cérin
    HALPreprintPublisher termsFull textOptimisation & controlHAL
  5. Empirical Bayes in Bayesian learning: understanding a common practice
    Stefano Rizzelli, Judith Rousseau, Sonia Petrone
    Journal of the American Statistical AssociationPeer-reviewedLicence not statedStatisticsHAL

Cite

BibTeXRIS
BibTeX
@article{he2026cross,
  title = {{Cross shareholders and corporate cash holdings: Empirical evidence from Chinese listed companies}},
  author = {Yili He and Xihe Liu},
  journal = {PLOS One},
  year = {2026},
  month = oct,
  doi = {10.1371/journal.pone.0338657},
  url = {https://doi.org/10.1371/journal.pone.0338657},
  note = {CC BY 4.0},
}
RIS
TY  - JOUR
TI  - Cross shareholders and corporate cash holdings: Empirical evidence from Chinese listed companies
AU  - Yili He
AU  - Xihe Liu
PY  - 2026
DA  - 2026/10/26
JO  - PLOS One
DO  - 10.1371/journal.pone.0338657
UR  - https://doi.org/10.1371/journal.pone.0338657
AB  - Cross shareholders have become a common phenomenon in capital markets, which increasingly draw the attention of scholars. This paper examines the effect of cross shareholders on corporate cash holdings in Chinese capital market and finds cross shareholders increase corporate cash holdings. Further mechanism analyses find suggestive evidence that this increase is correlated with reductions in overinvestment and improvements in total asset turnover. Additional results show the effect of cross shareholders has heterogeneous significance given the conditions of different external environment and firm characteristics. Moreover, cross shareholders reinforce the positive effect of cash holdings on firm productivity. Overall, this paper’s findings provide insight for understanding the role of cross shareholders in corporate cash holding decision in China.
SN  - 1932-6203
ER  -