Financial Constraints,Corporate Characteristics and Investment: Evidence from China Stock Market (1995—2006)
In this paper,we introduce the standard regression model and use Erickson and Whiteds (2000) Generalized Method of Moments (GMM) estimation model to examine the possible influence of financial constraints and corporate characteristics on corporate investment based on china listed company sample from 1995 to 2006.Our empirical findings indicate that cash flow remains important for investment.We find that less-constrained firms exhibit larger cash flow sensitivities than more-constrained firms,which do not support the hypothesis for a positive relationship between the sensitivities and the degree of financial constraints.We also find evidence that young firms adjust investment by observing cash flow realizations.The corporate other characteristics,depreciation rate and volatility have no significant influence on the cash flow sensitivities of investment.
GMM financial constraints corporate characteristic investment
CAO Yanming
School of Management,China University of Mining & Technology,P.R.China,221116
国际会议
2007 International Conference on Management Science and Engineering(2007管理科学与工程国际学术会议)
河南焦作
英文
2712-2717
2007-08-20（万方平台首次上网日期，不代表论文的发表时间）