The Study on Relationship between Financing Constraints and Investment-Cash Flow Sensitivity in Chinese Listed Companies

Abstract:

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This paper uses the financial data of all Chinese listed companies to construct two indexes that reflect the degree of external financing constraints faced by firms, using logistic regression model and multiple discriminate analyses respectively. Second, the author examines the relationship between financing constraints and the investment-cash flow sensitivity using OLS regressions. This paper provides evidence that the relationship between financing constraints and investment-cash flow sensitivity is monotonic, which is consistent with the findings of FHP(1988).

Info:

Periodical:

Advanced Materials Research (Volumes 268-270)

Edited by:

Feng Xiong

Pages:

1844-1849

DOI:

10.4028/www.scientific.net/AMR.268-270.1844

Citation:

C. C. Li "The Study on Relationship between Financing Constraints and Investment-Cash Flow Sensitivity in Chinese Listed Companies", Advanced Materials Research, Vols. 268-270, pp. 1844-1849, 2011

Online since:

July 2011

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Price:

$35.00

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