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Title:Internal finance and growth: microeconometric evidence on Chinese firms PDF Logo
Authors:Guariglia, Alessandra
Liu, Xiaoxuan
Song, Lina
Issue Date:2008
Series/Report no.:IZA discussion papers 3808
Abstract:Does the availability of internal finance constrain firm growth? Or does it foster it? To answer these questions, we use a panel of 407,096 Chinese firms over the period 2000-2005. We estimate dynamic assets growth equations augmented with cash flow, and find that the growth of state owned enterprises is not affected by cash flow, while that of privately owned firms is most affected. Considering that they represent 62% of the observations in our sample and that, in spite of being typically discriminated against by financial institutions, private firms have experienced sensational growth rates, our results suggest that internal finance has fostered rather than constrained their growth.
Subjects:Assets growth
cash flow
financial constraints
JEL:D92
Persistent Identifier of the first edition:urn:nbn:de:101:1-20081126830
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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