The effect of banking system reform on investment-cash flow sensitivity: Evidence from China

Ying Ju Tsai, Yi Pei Chen, Chi Ling Lin, Jung Hua Hung

研究成果: 雜誌貢獻期刊論文同行評審

41 引文 斯高帕斯(Scopus)

摘要

This study investigates the effect of banking system reform on the investment behavior of Chinese listed firms. We find that the politically-oriented investment problem for state-controlled listed companies is mitigated by the reform due to foreign participation in the management of Chinese banks. The problem of underinvestment in non-state-controlled listed companies also appears to be alleviated due to an increase of bank loans. We include leverage in our analysis and the main findings are robust. The results provide evidence that Chinese banking system reform has increased the efficiency of resource allocation, easing investment distortions in state-controlled listed companies and reducing financial constraints in non-state-controlled listed companies.

原文???core.languages.en_GB???
頁(從 - 到)166-176
頁數11
期刊Journal of Banking and Finance
46
發行號1
DOIs
出版狀態已出版 - 9月 2014

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