The investment-cash flow sensitivity (ICFS) of Chinese firms declined during the global financial crisis, which contradicts the conventional financial constraint interpretation of ICFS. We analyze this phenomenon by examining how cash flow uncertainty affects the ways of financing investment. We...

The investment-cash flow sensitivity (ICFS) of Chinese firms declined during the global financial crisis, which contradicts the conventional financial constraint interpretation of ICFS. We analyze this phenomenon by examining how cash flow uncertainty affects the ways of financing investment. We...

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...

Using a panel of 65,551 firms over the period 2000-2006, this study examines the capital structure determinants of Chinese privately owned small and medium-sized enterprises. Investment in the building and maintenance of social capital, measured by entertainment expenditure, is found to be...

Financial factors have been found highly important in influencing firms' real activities and in promoting aggregate growth. Yet, the linkage between finance and firm-level productivity has been overlooked. We fill this gap in the literature using a large panel of Chinese manufacturing firms over...