원문정보
초록
영어
In contrast to recent studies using U.S. data, we find a positive relation between product market competition and corporate investment using a sample of Chinese manufacturing firms during 1999-2010. A quasi-natural experiment and change regressions yield consistent evidence. We contend that China’s high growth rate, as it transitions from a developing economy to a developed economy, is what drives the positive relation between competition and investment. We directly test and provide support for this growth-oriented explanation. We also find that high investment under high competition is a value-enhancing proposition for firms. Finally, we also test to see if there are some firm-types that are more likely to invest under high competition in a growing economy, and we find that firms with high predation risk, firms that are industry leaders, and firms with good governance are the ones that invest more.
목차
1. Introduction
2. Institutional background on product market competition in China
3. Data and empirical approach
3.1 Data sources
3.2 Variable definitions and summary statistics
4. Empirical results
4.1 Main regression results
4.2 Addressing endogeneity concerns
4.3 Does high growth drive the positive relation between competition and investment?
4.4 Impact of high investment under high competition
5. Conclusion
References