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The impact of uncertainty on firm investment: evidence from machinery industry in Liaoning province of China

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  • Bo, Hong
  • Zhang, Zhihai

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  • Bo, Hong & Zhang, Zhihai, 2002. "The impact of uncertainty on firm investment: evidence from machinery industry in Liaoning province of China," Economic Systems, Elsevier, vol. 26(4), pages 335-352, December.
    • Handle: RePEc:eee:ecosys:v:26:y:2002:i:4:p:335-352
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    5. Park, Albert & Sehrt, Kaja, 2001. "Tests of Financial Intermediation and Banking Reform in China," Journal of Comparative Economics, Elsevier, vol. 29(4), pages 608-644, December.
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    8. Robert Lensink & Hong Bo & Elmer Sterken, 2001. "Investment, Capital Market Imperfections, and Uncertainty," Books, Edward Elgar Publishing, number 1770.
    9. Lubomír Lízal & Jan Svejnar, 2002. "Investment, Credit Rationing, And The Soft Budget Constraint: Evidence From Czech Panel Data," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 353-370, May.
    10. Luigi Guiso & Giuseppe Parigi, 1999. "Investment and Demand Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 185-227.
    11. Lensink, Robert & Sterken, Elmer, 2000. "Capital Market Imperfections, Uncertainty and Corporate Investment in the Czech Republic," Economic Change and Restructuring, Springer, vol. 33(1-2), pages 53-70.
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    13. Leahy, John V & Whited, Toni M, 1996. "The Effect of Uncertainty on Investment: Some Stylized Facts," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(1), pages 64-83, February.
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    17. Nina Budina & Harry Garretsen & Eelke De Jong, 2000. "Liquidity Constraints and Investment in Transition Economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 453-475, July.
    18. John Huizinga, 1993. "Inflation uncertainty, relative price uncertainty, and investment in U.S. manufacturing," Proceedings, Federal Reserve Bank of Cleveland, pages 521-557.
    19. Lixin Colin Xu, 2000. "Control, Incentives and Competition: The Impact of Reform on Chinese State‐owned Enterprises," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(1), pages 151-173, March.
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    21. Huizinga, John, 1993. "Inflation Uncertainty, Relative Price Uncertainty, and Investment in U.S. Manufacturing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(3), pages 521-549, August.
    22. Donald Hay & Guy Liu, 1998. "Cost Behaviour of Chinese State-owned Manufacturing Enterprises in the 1980s," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(1), pages 25-37.
    23. Hong Bo, 2002. "Idiosyncratic Uncertainty and Firm Investment," Australian Economic Papers, Wiley Blackwell, vol. 41(1), pages 1-14, March.
    24. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    25. Weihwa Pan & David Parker, 1997. "A Study of Management Attitudes in Chinese State-Owned Enterprises, Collectives and Joint Ventures," Asia Pacific Business Review, Taylor & Francis Journals, vol. 3(3), pages 38-63, March.
    26. Whited, Toni M, 1992. "Debt, Liquidity Constraints, and Corporate Investment: Evidence from Panel Data," Journal of Finance, American Finance Association, vol. 47(4), pages 1425-1460, September.
    27. Enrico C Perotti & Laixiang Sun & Liang Zou, 1999. "State-Owned versus Township and Village Enterprises in China*," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 41(2-3), pages 151-179, September.
    28. Hartman, Richard, 1972. "The effects of price and cost uncertainty on investment," Journal of Economic Theory, Elsevier, vol. 5(2), pages 258-266, October.
    29. Li, Xiaoming, 2000. "Reforming China's financial system and monetary policies: a sovereign remedy for locally initiated investment expansion?," Journal of Development Economics, Elsevier, vol. 62(2), pages 423-443, August.
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    31. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    32. Nakamura, Tamotsu, 1999. "Risk-aversion and the uncertainty-investment relationship: a note," Journal of Economic Behavior & Organization, Elsevier, vol. 38(3), pages 357-363, March.
    33. Abel, Andrew B, 1983. "Optimal Investment under Uncertainty," American Economic Review, American Economic Association, vol. 73(1), pages 228-233, March.
    34. Steven N. Kaplan & Luigi Zingales, 1997. "Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 169-215.
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    Cited by:

    1. Le Khuong Ninh & Niels Hermes & Ger Lanjouw, 2004. "Investment, uncertainty and irreversibility," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 307-332, June.
    2. Arif Khan, Muhammad & Qin, Xuezhi & Jebran, Khalil & Ullah, Irfan, 2020. "Uncertainty and R&D investment: Does product market competition matter?," Research in International Business and Finance, Elsevier, vol. 52(C).
    3. Muhammad Arif Khan & Meng Bin & Chunlin Wang & Hazrat Bilal & Arshad Ali Khan & Irfan Ullah & Amjad Iqbal & Mohib Ur Rahman, 2023. "Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?," SAGE Open, , vol. 13(4), pages 21582440231, November.
    4. Robert Lensink & Victor Murinde, 2006. "The Inverted-U hypothesis for the effect of uncertainty on investment: Evidence from UK firms," The European Journal of Finance, Taylor & Francis Journals, vol. 12(2), pages 95-105.
    5. Arif Khan, Muhammad & Qin, Xuezhi & Jebran, Khalil, 2019. "Does uncertainty influence the leverage-investment association in Chinese firms?," Research in International Business and Finance, Elsevier, vol. 50(C), pages 134-152.
    6. Muhammad Arif Khan & Xuezhi Qin & Khalil Jebran & Abdul Rashid, 2020. "The Sensitivity of Firms’ Investment to Uncertainty and Cash Flow: Evidence From Listed State-Owned Enterprises and Non-State-Owned Enterprises in China," SAGE Open, , vol. 10(1), pages 21582440209, January.
    7. Le, K.N. & Hermes, N. & Lanjouw, G., 2003. "Irreversible investment and uncertainty : an empirical study of rice mills in the Mekong river delta, Vietnam," Research Report 03E40, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    8. repec:dgr:rugsom:03e40 is not listed on IDEAS
    9. K. Farla, 2014. "Determinants of firms' investment behaviour: a multilevel approach," Applied Economics, Taylor & Francis Journals, vol. 46(34), pages 4231-4241, December.
    10. Trinh, Q. Long & Morgan, Peter J. & Sonobe, Tetsushi, 2020. "Investment behavior of MSMEs during the downturn periods: Empirical evidence from Vietnam," Emerging Markets Review, Elsevier, vol. 45(C).
    11. Wang, Yizhong & Chen, Carl R. & Chen, Lifang & Huang, Ying Sophie, 2016. "Overinvestment, inflation uncertainty, and managerial overconfidence: Firm level analysis of Chinese corporations," The North American Journal of Economics and Finance, Elsevier, vol. 38(C), pages 54-69.
    12. Shiferaw, A., 2006. "Capital adjustment patterns and uncertainty in African manufacturing," ISS Working Papers - General Series 18759, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    13. Muhammad Arif Khan & Xuezhi Qin & Khalil Jebran, 2020. "Uncertainty and leverage nexus: does trade credit matter?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 355-389, September.

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