This study uses multiple regression to empirically analyse the relationship between loans from executives and financial strategies of agricultural corporations. The cash holdings ratio is used as an indicator of financial strategy. The key findings are as follows: (1) A negative relationship exists between the balance of loans from executives and the cash holdings ratio; (2) In corporations that increased loans from executives during the year, a higher operating cash flow to total assets ratio is associated with a higher cash holdings ratio in the same year; and (3) In these corporations, a higher operating cash flow to total assets ratio is linked to a lower cash holdings ratio in the subsequent year. These results suggest that agricultural corporations utilizing loans from executives tend to adopt financial strategies based on short-term perspectives rather than long-term financial stability.
