All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Yuan Yuan and Kazuyuki Motohashi
''Does Bank Loan Ratio Affect Investment of China's Listed Companies?''
( 2010, Vol. 30 No.2 )
In this paper, we analyze whether the total debt ratios and bank loan ratios of Chinese listed companies had any impact on their fixed investment in 2001-2006, and whether this impact, if it existed, differed among companies with differing investment opportunities. The analysis led to the interesting result that the bank loan ratio had a stronger impact on fixed investment than the total debt ratio, and actually had the strong effect of restraining investment particularly by low-growth companies, implying that in China, banks supervise the investment activities of companies more strongly.
Keywords: JEL: G31, G32, D92
JEL: G3 - Corporate Finance and Governance: General
Manuscript Received : Oct 13 2009 Manuscript Accepted : May 03 2010

  This abstract has been downloaded 1690 times                The Full PDF of this paper has been downloaded 152018 times