What Drives Fixed Asset Holding and Risk-Adjusted Performance of Corporate in China? An Empirical Analysis
Yan Dong (),
Charles Leung and
Dongliang Cai
MPRA Paper from University Library of Munich, Germany
Abstract:
This 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.
Keywords: fixed asset holding; corporate real estate; over-investment theory; state-ownership; tax-favor policy (search for similar items in EconPapers)
JEL-codes: G30 L20 R30 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (7)
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https://mpra.ub.uni-muenchen.de/29128/1/MPRA_paper_29128.pdf original version (application/pdf)
Related works:
Journal Article: What Drives Fixed Asset Holding and Risk- Adjusted Performance of Corporates in China? An Empirical Analysis (2012) 
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29128
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