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| Yuan Yuan and Kazuyuki Motohashi |
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| ''Does Bank Loan Ratio Affect Investment of China's Listed Companies?'' |
| ( 2010, Vol. 30 No.2 ) |
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| 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. |
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| Keywords: JEL: G31, G32, D92 |
JEL: G3 - Corporate Finance and Governance: General
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| Manuscript Received : Oct 13 2009 | | Manuscript Accepted : May 03 2010 |
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