What Drives Fixed Asset Holding and Risk-Adjusted Performance of Corporate in China? An Empirical Analysis
AbstractThis paper attempts to shed light on the over-investment debate by investigating listed firms in China. Firms with higher level of fixed asset holding, higher level of overhead expenses, and being covered by the tax-favor policy in China are found to be associated with a lower risk-adjusted performance. In addition, the tax-favor policy itself encourages fixed asset investment. In contrast to some of the previous literature, state-ownership of firms, dividend policy, and ownership concentration are not robust predictors of risk-adjusted performance, and debt level, managerial shareholding, and profit per unit of asset are not robust predictors of fixed asset investment.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29128.
Date of creation: 2011
Date of revision:
fixed asset holding; corporate real estate; over-investment theory; state-ownership; tax-favor policy;
Other versions of this item:
- Yan Dong & Charles Ka Yui Leung & Dongliang Cai, 2012. "What Drives Fixed Asset Holding and Risk- Adjusted Performance of Corporates in China? An Empirical Analysis," International Real Estate Review, Asian Real Estate Society, vol. 15(2), pages 141-164.
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
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