Earticle

초록

영어

In contrast to recent studies using U.S. data, we find a positive relation between product market competition and corporate investment using a sample of Chinese manufacturing firms during 1999-2010. A quasi-natural experiment and change regressions yield consistent evidence. We contend that China’s high growth rate, as it transitions from a developing economy to a developed economy, is what drives the positive relation between competition and investment. We directly test and provide support for this growth-oriented explanation. We also find that high investment under high competition is a value-enhancing proposition for firms. Finally, we also test to see if there are some firm-types that are more likely to invest under high competition in a growing economy, and we find that firms with high predation risk, firms that are industry leaders, and firms with good governance are the ones that invest more.

목차

Abstract
 1. Introduction
 2. Institutional background on product market competition in China
 3. Data and empirical approach
  3.1 Data sources
  3.2 Variable definitions and summary statistics
 4. Empirical results
  4.1 Main regression results
  4.2 Addressing endogeneity concerns
  4.3 Does high growth drive the positive relation between competition and investment?
  4.4 Impact of high investment under high competition
 5. Conclusion
 References

키워드

저자

• Fuxiu Jiang [ School of Business Renmin University of China 59 Zhongguancun Street, Haidian District Beijing, China ]
• Bing Zhu [ School of Business Renmin University of China 59 Zhongguancun Street, Haidian District Beijing, China ]
• Kenneth A. Kim [ School of Management State University of New York at Buffalo Buffalo, New York 14260 ]
• Suk H. Kim [ College of Business Administration University of Detroit Mercy 4001 W. McNichols Road Detroit, MI 48221 ] Corresponding author.

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330