What drives a firm's investment decisions in China? While most literature focuses on the role of financial factors … fundamentals. Empirical results show that private firms cherish investment opportunities more in China. State-owned enterprises … respond more to the investment opportunities from the supply side, but much less so to demand-side shocks. These findings …

What drives a firm's investment decisions in China? While most literature focuses on the role of financial factors … fundamentals. Empirical results show that private firms cherish investment opportunities more in China. State-owned enterprises … respond more to the investment opportunities from the supply side, but much less so to demand-side shocks. These findings …

linkages between investment in fixed and working capital and financing constraints. We find that those firms characterized by … high working capital display high sensitivities of investment in working capital to cash flow (WKS) and low sensitivities … of investment in fixed capital to cash flow (FKS). We then construct and analyze firm-level FKS and WKS measures and find …

the relationship between firm size, total factor productivity growth and financial structure in China, controlling for the … financing source matters for firm growth is greater for small firms than big firms. Self-raised finance appears to be most … size, finance and growth also depends on ownership. In addition, there exist strong complementarities between formal and …

Does the availability of internal finance constrain firm growth? Or does it foster it? To answer these questions, we … use a panel of 407,096 Chinese firms over the period 2000-2005. We estimate dynamic assets growth equations augmented with … cash flow, and find that the growth of state owned enterprises is not affected by cash flow, while that of privately owned …