What drives a firm's investment decisions in China? While most literature focuses on the role of financial factors (such as cash flow), we explore this most important question in corporate finance from the perspective of economic fundamentals. Empirical results show that private firms cherish...

What drives a firm's investment decisions in China? While most literature focuses on the role of financial factors (such as cash flow), we explore this most important question in corporate finance from the perspective of economic fundamentals. Empirical results show that private firms cherish...

This paper investigates how export destination concentration affects exporters' domestic capital investments. Using a large sample of Chinese export firms, we find strong evidence that firms invest less when destinations are more concentrated. The causal relationship is further confirmed by a...