Dong, Yan and Leung, Charles Ka Yui and Cai, Dongliang (2011): What Drives Fixed Asset Holding and Risk-Adjusted Performance of Corporate in China? An Empirical Analysis.
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This paper attempts to shed light on the over-investment debate by investigating listed firms in China. Firms with higher level of fixed asset holding, higher level of overhead expenses, and being covered by the tax-favor policy in China are found to be associated with a lower risk-adjusted performance. In addition, the tax-favor policy itself encourages fixed asset investment. In contrast to some of the previous literature, state-ownership of firms, dividend policy, and ownership concentration are not robust predictors of risk-adjusted performance, and debt level, managerial shareholding, and profit per unit of asset are not robust predictors of fixed asset investment.
|Item Type:||MPRA Paper|
|Original Title:||What Drives Fixed Asset Holding and Risk-Adjusted Performance of Corporate in China? An Empirical Analysis|
|Keywords:||fixed asset holding, corporate real estate, over-investment theory, state-ownership, tax-favor policy|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Production Analysis, and Firm Location > R30 - General
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General
G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General
|Depositing User:||Charles Ka Yui Leung|
|Date Deposited:||25. Feb 2011 16:44|
|Last Modified:||12. Feb 2013 11:09|
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