Distortions in capital markets can create financial constraints that deter firms from pursuing optimal investment plans …. This paper explores how much these constraints affect investment by ownership type in China, using a panel data model … face greater financial constraints than state-owned enterprises (SOEs), as POE investment plans depend more on the …

The study investigates the role of financial development in boosting the investment efficiency of firms' investments in … concludes that firms suffering from under- (over-) investment problem due to financing constraints (agency problem), are more … likely to increase (decrease) their investment' in the response of underlying financial development in the economy. This …