Unlike local governments in western countries, local Chinese governments are prevented from directly issuing debt to fund mandated capital projects. As a result of recent fiscal stresses and restrictions placed on local governments, China has developed a unique funding source, known as Local...

We study the relation between state ownership and cash holdings in China’s share-issue privatized firms from 2000 to 2012. We find that the level of cash holdings increases as state ownership declines. For the average firm in our sample, a 10 percentage-point decline in state ownership leads...

We study the relation between state ownership and cash holdings in China's share-issue privatized firms from 1993 to 2007. We find that the level of cash holdings declines as state ownership increases. This negative relation is attributable to the soft-budget constraint (SBC) inherent in state...

This appendix provides the complete list of sample firms and the robustness checks results discussed in the paper, Industrial Policy and Asset Prices: Stock Market Reactions to Made In China 2025 Policy Announcements, found here:"https://ssrn.com/abstract=3521006" https://ssrn.com/abstract=3521006