Abstract From the perspective of incidence relation, similarities and differences of stock ownership, and the identity of company promoters, this paper studies how relations between the shareholders impact the cash holdings level and the value of the cash holdings and the functionary mechanism. The results show that the existence of relationship between shareholders or the same equity nature will reduce the cash value; On the contrary, the shareholders concurrently as the promoters will boost the value of corporate cash holdings. The mechanism that shareholders have impact on cash holding value mainly embodies as that the existence of shareholder relations will strengthen the negative correlation between free cash flow and enterprise investment efficiency.
2016, Vol. 33 
