Abstract Taking A-share listed companies from 2009 to 2021 as a sample, this paper examines the impact of heterogeneity in debt sources on a firm’s level of excess cash holdings. The findings reveal that heterogeneity in debt sources significantly reduces a company’s excess cash holdings. Furthermore, after conducting various robustness tests, the above conclusion still holds valid. Mechanism analysis shows that debt source heterogeneity can significantly reduce the level of excess cash holdings by reducing agency costs and alleviating financing constraints. The heterogeneity analysis indicates that the reducing effect of heterogeneity in debt sources on a firm’s level of excess cash holdings is more pronounced in regions with lower market competition, state-owned enterprises, and small-scaleenterprises. On the other hand, a higher proportion of institutional investors, greater media attention, and higher internal control quality weaken the inhibitory effect of heterogeneity in debt sources on excess cash holdings. Economic consequence studies have found that excess cash holdings reduce a company’s ability for sustainable development, while heterogeneity in debt sources can attenuate this negative impact. The research conclusion provides an important basis for fully leveraging the role of debt governance and improving the efficiency of capital allocation in companies.
DONG Hongjie,WANG Congcong. Will the Heterogeneity of Debt Sources Suppress the Level of Excess Cash Holdings of Enterprises?. Economic Survey, 2024, 41(1): 0147.
2024, Vol. 41 
