The Impact of Recognition of Specialized and New Enterprises on Corporate Cash Holdings

Specialized and new enterprises provide high-quality, differentiated products and services in specific fields, driving technological innovation and industry advancement. Cash holding levels are important in addressing emergencies and achieving steady operational growth. Using A-share listed companies from 2008 to 2022 as a sample, this paper employs the difference-in-differences method to empirically examine the impact and mechanism of recognizing specialized and new enterprises on cash holding levels. The research indicates that the recognition of specialized and new enterprises can significantly reduce corporate cash holding levels, a conclusion that holds true after a series of robustness tests. Mechanism analysis reveals that the recognition of specialized and new enterprises has a more pronounced effect on companies with shorter establishment years and smaller scales. Heterogeneity analysis finds that the recognition of specialized and new enterprises can significantly reduce the cash holding levels of non-state-owned enterprises. This study expands the literature on the recognition of specialized and new enterprises and corporate cash holding levels, providing suggestions for improving recognition standards and enhancing policy promotion and support efforts for specialized and new enterprises.