Anticorruption and Corporate Investment in China: Evidence from a Quasi-Natural Experiment

2020 ◽  
Author(s):  
Alberto Batinti ◽  
Yen Teik Lee ◽  
Bingyong Zheng
Keyword(s):  
Natural Experiment ◽  
Corporate Investment ◽  
Investment In China

Anti-corruption and Corporate Investment: Evidence from a Quasi-Natural Experiment

2019 ◽  
Author(s):  
Ru Chen ◽  
Jinshuai Hu ◽  
Jamie Yixing Tong ◽  
Feida Zhang
Keyword(s):  
Natural Experiment ◽  
Corporate Investment

scholarly journals Institutions and Corporate Investment: Evidence from Investment-Implied Return on Capital in China

2011 ◽  
Vol 46 (6) ◽  
pp. 1831-1863 ◽  
Author(s):  
Qiao Liu ◽  
Alan Siu
Keyword(s):  
Generalized Method Of Moments ◽  
Corporate Investment ◽  
Discount Rates ◽  
Chinese Firms ◽  
Institutional Factor ◽  
Institutional Variables ◽  
Return On Capital ◽  
Moments Estimators ◽  
Investment In China ◽  
The Impact

AbstractWe assess the impact of institutions on Chinese firms’ corporate investment in an investment Euler equation framework. We allow the variables measuring institutions to affect the rate at which firm managers discount future investment payoffs. Applying generalized method of moments estimators to large samples of Chinese firms, we estimate the stochastic discount rates derived from actual investment and examine how they vary across institutional variables. We document robust evidence that ownership is the primary institutional factor affecting corporate investment in China. The derived discount rate for a nonstate firm is approximately 10 percentage points higher than that of an otherwise equal state firm. State firms tend to use higher discount rates to invest after they are partially privatized. We also find that firms with higher levels of corporate governance use higher discount rates to make investment.

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