Ownership, Export Behavior and Firms’ Financial Constraint
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| Title | Ownership, Export Behavior and Firms’ Financial Constraint
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| Author | Tong Jiadong and Yu Ziliang |
| Organization | NANKAI UNIVERSITY |
| Email | tongjd@nankai.edu.cn；yuziliang@163.com |
| Key Words | Ownership; Export Behavior; Financial Constraint; Signal Effect; Market-Diversification Effect |
| Abstract | In this paper, we test how firms’ export behavior influence their financial constraint in different ownership groups, using firm-level data during 1998-2007 from Chinese Industrial Enterprises Database. Then, we give a further investigation on channels from which firms are influenced by. The conclusions are as follow: Export behavior releases the financial constraints of private firms and foreign-owned firms, while decreases “soft budget” problem of state-owned firms and makes their investment behavior more marketable. Private firms and foreign-owned firms are influenced by export behavior throng different channels. Export behavior impact on private firms through ‘Signal Effect’ and ‘Service-Market Diversification Effect’ and on foreign-owned firms through “Service-Market Diversification Effect” and “Financing-Market Diversification Effect”. |
| Serial Number | WP593 |
| Time | 2014-01-28 |
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