Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/187680
Authors: 
Chen, Donghua
Li, Oliver Zhen
Xin, Fu
Year of Publication: 
2017
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 10 [Year:] 2017 [Issue:] 3 [Pages:] 189-204
Abstract: 
An important factor influencing corporate finance and economic growth in China lies in its government sponsored industrial policies. Examining China's five-year plans during 1991-2010, we find that state-owned firms in government supported industries enjoy faster growth in initial public offerings and higher offer prices. Further, they enjoy faster growth in loans granted by major national banks. However, this preferential access to capital by state-owned firms appears to be achieved at the expense of non-state-owned firms which are crowded out. Government support induces more investment but also brings more overinvestment, which mainly comes from the non-state sector. Finally, supported industries have higher stock market returns and cash flow growth that dampen when state ownership increases.
Subjects: 
Five-year plans
Government engineering
Industrial policies
Corporate finance
Economic growth
China
JEL: 
G3
O2
P2
P3
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
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