State control, access to capital and firm performance

• 作者: Oliver Zhen Li Xijia Su Zhifeng Yang
• 来源期刊: 中国会计学刊：英文版
• 学科: 经济
• 关键词: STATE control ACCESS to CAPITAL FIRM GROWTH Regula
• 年，卷（期）: 2012,（2）
• 页码范围: 101-125
• 页数: 25页
• 分类号: F123.15

摘要

We study the effect of state control on capital allocation and investment in China, where the government screens prospective stock issuers. We find that state firms are more likely to obtain government approval to conduct seasoned equity offerings than non-state firms. Further, non-state firms exhibit greater sensitivities of subsequent investment and stock performance to regulatory decisions on stock issuances than state firms. Our work suggests that state control of capital access distorts resource allocation and impedes the growth of non-state firms. We also provide robust evidence that financial constraints cause underinvestment.