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Research of Microcosmic Affection Factors on Capital Misallocation: A Case of Chinese Listed Companies
Joint Authors
Piao, Zhefan
Jia, Jini
Shen, Fangyan
Chen, Rongda
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-09-08
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
With the restrictions of equity financing of Chinese listed companies, debt dimensions are increasing, and the issue of corporate financial structure and financing constraints influence on capital misallocation has become an important practical problem which Chinese listed companies face.
This paper is concerned with a model about capital misallocation and its influencing factors of integrated financing, capital operation, and investment performance.
We take 7096 observations of 646 Chinese listed companies during fiscal years 2003 to 2014 for A-shares on the Shanghai and Shenzhen stock exchange, for instance, to empirically test the microscopic influencing factors of capital misallocation under different external financing dependence.
The study illustrates the following: (1) in descriptive statistics of different industries capital misallocation, more than half of firms experience the circumstance of capital misallocation; (2) although Chinese listed companies are faced with financing constraints, capital market inefficiency, and other issues, most companies still depend on external financing; (3) the main factors that affect capital misallocation of the listed companies are financial liquidity and financial pledgeability; (4) the firms with high innovation abilities generally have stronger profitability, superior financial liquidity, and better financial pledgeability, thus reducing corporate capital misallocation; (5) the Chinese listed companies with large-scale assets and strong profitability easily obtain bank loans and equity financing, while violating the principle of assets matching.
American Psychological Association (APA)
Piao, Zhefan& Jia, Jini& Shen, Fangyan& Chen, Rongda. 2016. Research of Microcosmic Affection Factors on Capital Misallocation: A Case of Chinese Listed Companies. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-12.
https://search.emarefa.net/detail/BIM-1112765
Modern Language Association (MLA)
Piao, Zhefan…[et al.]. Research of Microcosmic Affection Factors on Capital Misallocation: A Case of Chinese Listed Companies. Mathematical Problems in Engineering No. 2016 (2016), pp.1-12.
https://search.emarefa.net/detail/BIM-1112765
American Medical Association (AMA)
Piao, Zhefan& Jia, Jini& Shen, Fangyan& Chen, Rongda. Research of Microcosmic Affection Factors on Capital Misallocation: A Case of Chinese Listed Companies. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-12.
https://search.emarefa.net/detail/BIM-1112765
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1112765