In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their … funding constraints, while leaving state-owned firms' investment unaffected. We establish this result using a purpose …-built dataset for Chinese local public debt. Private firms invest less in cities with more public debt, the reduction in investment …

In China, local public debt issuance between 2006 and 2013 crowded out investment by private manufacturing firms by …-level investment ratio of domestic private manufacturing firms. Instrumental variable regressions indicate that this link is causal …. Second, local public debt has a larger negative effect on investment by private firms in industries more dependent on …

model's predictions: First, investment and access to finance are positively correlated with accounting transparency … transparency on investment, and encourages transparency by financially dependent firms …

reduce investment in family firms, by reducing the future income they can pledge to external financiers. Using a purpose … stricter inheritance law is associated with lower investment in family firms, but does not affect investment in non …-family firms. Moreover, as the model predicts, inheritance law affects investment only in family firms that experience a succession …

reduce investment in family firms, by reducing the future income they can pledge to external financiers. Using a purpose … stricter inheritance law is associated with lower investment in family firms, but does not affect investment in non …-family firms. Moreover, as the model predicts, inheritance law affects investment only in family firms that experience a succession …