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Full-Text Articles in Business
Decentralization And Firm Investment: Evidence From China, Xiaofei Pan, Yiping Wu, Huihang Wu
Decentralization And Firm Investment: Evidence From China, Xiaofei Pan, Yiping Wu, Huihang Wu
Faculty of Business - Papers (Archive)
Taking advantage of decentralization reform that enlarges the authority of county government in China, we construct a quasi-experiment. Using a large sample of Chinese firms, we show that after the implementation of decentralization reform, firms located in decentralized counties experienced a significant increase in investment expenditure compared with other firms. We also find that after the decentralization reform, state owned enterprises (SOEs) experienced greater increase in investment expenditure on average compared with non-SOEs, and that, within non-SOEs, collective firms have an even larger increase in investments, followed by foreign firms and private firms. Further analysis shows that the influence of …
Stock Liquidity, Corporate Governance And Leverage: New Panel Evidence, Sivathaasan Nadarajah, Searat Ali, Benjamin Liu, Allen Huang
Stock Liquidity, Corporate Governance And Leverage: New Panel Evidence, Sivathaasan Nadarajah, Searat Ali, Benjamin Liu, Allen Huang
Faculty of Business - Papers (Archive)
We examine the effect of stock liquidity and corporate governance on the firm's leverage decision in the order-driven stock trading system and less stringent governance environment of Australia. Using a sample of 1207 non-financial firms from 2001 to 2013, resulting in 9855 firm-year observations, we find the posited negative stock liquidity-leverage relation, confirming prior research observations that firms with more liquid stocks are significantly less leveraged. We also find a significant and negative relation between corporate governance quality (CGQ) and leverage, indicating that firms with high CGQ significantly reduce leverage. In a closer analysis, we find that the significantly negative …