We 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...

This paper presents a new approach to infer return on capital from firms' capital expenditures, and then examines how institutions and financial development affect this implied return on capital. We apply the Generalized Method of Moments (GMM) estimator derived from a structural investment...