Cash Holding and Firm Value in the Presence of Managerial Optimism

Cash holding is important for Chinese manufacturing firms coping with the increasing costs of financing and tough economic conditions. This study examines impact cash on firm value businesses. We found evidence that a non-linear relationship exists between in these companies. The reveals higher level financially constrained negatively affects value, while unconstrained less have better value. Finally, this research enriched by implementing novel measure managerial optimism. Revealed interactive role optimism how they affect concludes influences firm’s decisions, more costly firms.