182
Views
1
CrossRef citations to date
0
Altmetric
VBER 2017 Conference, 16-18 November 2017, Ho Chi Minh City, Vietnam

State Ownership and the Relationship between Investment and Cash Flow: The Case of Vietnamese Listed Firms

&

References

  • Aivazian, V. A., Y. Ge, and J. Qiu. 2005. The impact of leverage on firm investment: Canadian evidence. Journal of Corporate Finance 11 (1):277–91. doi:10.1016/S0929-1199(03)00062-2.
  • Allayannis, G., and A. Mozumdar. 2004. The impact of negative cash flow and influential observations on investment–Cash flow sensitivity estimates. Journal of Banking & Finance 28 (5):901–30. doi:10.1016/S0378-4266(03)00114-6.
  • Allen, F., J. Qian, and M. Qian. 2005. Law, finance, and economic growth in China. Journal of Financial Economics 77 (1):57–116. doi:10.1016/j.jfineco.2004.06.010.
  • Almeida, H., and M. Campello. 2007. Financial constraints, asset tangibility, and corporate investment. The Review of Financial Studies 20 (5):1429–60. doi:10.1093/rfs/hhm019.
  • Arellano, M., and S. Bond. 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies 58 (2):277–97. doi:10.2307/2297968.
  • Bai, C.-E., J. Lu, and Z. Tao. 2006. The multitask theory of state enterprise reform: Empirical evidence from China. The American Economic Review 96 (2):353–57. doi:10.1257/000282806777212125.
  • Bhagat, S., N. Moyen, and I. Suh. 2005. Investment and internal funds of distressed firms. Journal of Corporate Finance 11 (3):449–72. doi:10.1016/j.jcorpfin.2004.09.002.
  • Borisova, G., and W. L. J. T. R. O. F. S. Megginson. 2011. Does government ownership affect the cost of debt? Evidence from privatization. The Review of Financial Studies24 (8):2693–737.
  • Brown, J. R., and B. C. Petersen. 2009. Why has the investment-cash flow sensitivity declined so sharply? Rising R&D and equity market developments. Journal of Banking & Finance 33 (5):971–84. doi:10.1016/j.jbankfin.2008.10.009.
  • Chen, C. R., Y. Li, D. Luo, and T. Zhang. 2017a. Helping hands or grabbing hands? An analysis of political connections and firm value. Journal of Banking & Finance 80:71–89. doi:10.1016/j.jbankfin.2017.03.015.
  • Chen, G., M. Firth, and L. Xu. 2009. Does the type of ownership control matter? Evidence from China’s listed companies. Journal of Banking & Finance 33 (1):171–81. doi:10.1016/j.jbankfin.2007.12.023.
  • Chen, R., S. El Ghoul, O. Guedhami, and H. J. J. O. C. F. Wang. 2017b. Do state and foreign ownership affect investment efficiency? Evidence from privatizations. Journal of Corporate Finance42:408–21.
  • Chen, R. R., S. El Ghoul, O. Guedhami, and R. Nash. 2018. State ownership and corporate cash holdings. Journal of Financial and Quantitative Analysis 53 (5):2293–334. doi:10.1017/S0022109018000236.
  • Chow, C. K. W., and M. K. Y. Fung. 1998. Ownership structure, lending bias, and liquidity constraints: Evidence from Shanghai‘s manufacturing sector. Journal of Comparative Economics 26 (2):301–16. doi:10.1006/jcec.1998.1527.
  • Cleary, S. 1999. The relationship between firm investment and financial status. The Journal of Finance 54 (2):673–92. doi:10.1111/0022-1082.00121.
  • Cleary, S., P. Povel, and M. Raith. 2007. The U-shaped investment curve: Theory and evidence. Journal of Financial and Quantitative Analysis 42 (01):1–39. doi:10.1017/S0022109000002179.
  • Cull, R., W. Li, B. Sun, and L. C. Xu. 2015. Government connections and financial constraints: Evidence from a large representative sample of Chinese firms. Journal of Corporate Finance 32:271–94. doi:10.1016/j.jcorpfin.2014.10.012.
  • Cull, R., and L. C. Xu. 2003. Who gets credit? The behavior of bureaucrats and state banks in allocating credit to Chinese state-owned enterprises. Journal of Development Economics 71 (2):533–59. doi:10.1016/S0304-3878(03)00039-7.
  • Du, M., and A. Boateng. 2015. State ownership, institutional effects and value creation in cross-border mergers & acquisitions by Chinese firms. International Business Review 24 (3):430–42. doi:10.1016/j.ibusrev.2014.10.002.
  • Faccio, M. 2006. Politically connected firms. The American Economic Review 96 (1):369–86. doi:10.1257/000282806776157704.
  • Fazzari, S. M., R. G. Hubbard, B. C. Petersen, A. S. Blinder, and J. M. Poterba. 1988. Financing constraints and corporate investment. Brookings Papers on Economic Activity 1988 (1):141–206. doi:10.2307/2534426.
  • Firth, M., C. Lin, and S. M. J. J. O. C. F. Wong. 2008. Leverage and investment under a state-owned bank lending environment: Evidence from China. Journal of Corporate Finance14 (5):642–53.
  • Firth, M., P. H. Malatesta, Q. Xin, and L. Xu. 2012. Corporate investment, government control, and financing channels: Evidence from China‘s Listed Companies. Journal of Corporate Finance 18 (3):433–50. doi:10.1016/j.jcorpfin.2012.01.004.
  • Guariglia, A. 2008. Internal financial constraints, external financial constraints, and investment choice: Evidence from a panel of UK firms. Journal of Banking & Finance 32 (9):1795–809. doi:10.1016/j.jbankfin.2007.12.008.
  • Guariglia, A., X. Liu, and L. Song. 2011. Internal finance and growth: Microeconometric evidence on Chinese firms. Journal of Development Economics 96 (1):79–94. doi:10.1016/j.jdeveco.2010.07.003.
  • Héricourt, J., and S. Poncet. 2009. FDI and credit constraints: Firm-level evidence from China. Economic Systems 33 (1):1–21. doi:10.1016/j.ecosys.2008.07.001.
  • Hoshi, T., A. Kashyap, and D. Scharfstein. 1991. Corporate structure, liquidity, and investment: Evidence from Japanese industrial groups. The Quarterly Journal of Economics 106 (1):33–60. doi:10.2307/2937905.
  • Jensen, M. C. 1986. Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review 76 (2):323–29.
  • Kaplan, S. N., and L. Zingales. 1997. “Do investment-cash flow sensitivities provide useful measures of financing constraints?”. The Quarterly Journal of Economics 112 (1):169–215. doi:10.1162/003355397555163.
  • Kornai, J. J. A. O. 1980. “ Hard” and” Soft” budget constraint. Acta Oeconomica 25:231–45.
  • Kornai, J. J. E. J. O. T. E. S. 1979. Resource-constrained versus demand-constrained systems. Econometrica47:801–19.
  • Lang, L., E. Ofek, and R. Stulz. 1996. Leverage, investment, and firm growth. Journal of Financial Economics 40 (1):3–29. doi:10.1016/0304-405X(95)00842-3.
  • Lin, J. Y., and G. Tan. 1999. Policy burdens, accountability, and the soft budget constraint. The American Economic Review 89 (2):426–31. doi:10.1257/aer.89.2.426.
  • Liu, Q., and Z. J. Lu. 2007. Corporate governance and earnings management in the Chinese listed companies: A tunneling perspective. Journal of Corporate Finance 13 (5):881–906. doi:10.1016/j.jcorpfin.2007.07.003.
  • Maskin, E., J. Kornai, and G. Roland. 2003. Understanding the Soft Budget Constraint. Journal of Economic Literature 41 (4):1095–136. doi:10.1257/jel.41.4.1095.
  • Modigliani, F., and M. H. Miller. 1958. The cost of capital, corporation finance and the theory of investment. The American Economic Review 48:261–97.
  • Myers, S. C. 1977. Determinants of corporate borrowing. Journal of Financial Economics 5 (2):147–75. doi:10.1016/0304-405X(77)90015-0.
  • Myers, S. C., and N. S. Majluf. 1984. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 13 (2):187–221. doi:10.1016/0304-405X(84)90023-0.
  • Nhung, L. T. P., and H. Okuda. 2015. Effects of state ownership on companies’ capital structure and profitability: Estimation analysis before and after the Lehman shock. Journal of Asian Economics 38:64–78. doi:10.1016/j.asieco.2015.04.001.
  • O‘Toole, C. M., E. L. Morgenroth, and T. T. J. J. O. C. F. Ha. 2016. Investment efficiency, state-owned enterprises and privatisation: Evidence from Viet Nam in Transition. Journal of Corporate Finance37:93–108.
  • Poncet, S., W. Steingress, and H. Vandenbussche. 2010. Financial constraints in China: Firm-level evidence. China Economic Review 21 (3):411–22. doi:10.1016/j.chieco.2010.03.001.
  • Sheshinski, E., and L. F. López-Calva. 2003. Privatization and its benefits: Theory and evidence. CESifo Economic Studies 49 (3):429–59. doi:10.1093/cesifo/49.3.429.
  • Sun, Q., and W. H. Tong. 2003. China share issue privatization: The extent of its success. Journal of Financial Economics 70 (2):183–222. doi:10.1016/S0304-405X(03)00145-4.
  • Tsai, Y.-J., Y.-P. Chen, C.-L. Lin, and J.-H. Hung. 2014. The effect of banking system reform on investment–Cash flow sensitivity: Evidence from China. Journal of Banking & Finance 46:166–76. doi:10.1016/j.jbankfin.2014.04.022.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.