The Impacts of Financial Constraint on the Growth Rate Distribution of Chinese Firms

• Main Authors: Ho, Hsuan-Ying, 何宣瑩
• Other Authors: Peng, Shi-Shu
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/565e4v

碩士 === 國立政治大學 === 財政學系 === 107 === Many researchers are very interested in China's economic development and have dedicated in relevant studies to explore possible reasons. From this perspective, this paper wants to find the possible reasons as well. Since each firm will change its own growth rate due to the degree of financial constraint, and then determine the overall economies of China, this paper will explore the impacts of financial constraint on the growth of Chinese firms. Hope that through the empirical results, this study could make suggestions for the growth of Taiwanese firms. Different from focusing the location-shift effect of the firm growth, this study takes into account the entire distribution of growth rates by using asymmetric exponential power (AEP) density. The empirical results show that financial constraint does change the tent-shaped distribution of firm growth into asymmetric distribution. And the left tail of the firm growth of state-owned firms is fatter than other types of firms, which reflects the fact that growth rates of Chinese state-owned firms are generally low. Moreover, because of the differences between Chinese and Western backgrounds, the empirical results from this paper will differ from the Western literatures. There are three main aspects to the conclusion. First, the right sides of Chinese firm growth distribution are similar in most scenarios, and those results are different from the right sides of Western firms. Second, different from the significant effect of old Western firms, most of old Chinese firms are state-owned, so they are less affected by financial constraint. Finally, young firms in China with high financial constraint are more affected by "pinioning effect" and "loss reinforcing effect". However, "loss reinforcing effect" is rarely found in young firms in Western countries with high financial constraint.