This paper examines whether government intervention plays an important role in determining corporate investment allocations and efficiency in China. We find that the government tends to intervene to promote corporate investment in fixed assets, equity in other state owned enterprises, and...

This study examines how macroeconomic performance competition is related to the investment allocation at firm level. We use different GDP competitions as proxies of dynamic macroeconomic condition. We find that the effect of GDP competition on fixed assets investment is significantly positive....