Yang, J. orcid.org/0000-0002-4509-1263, Guariglia, A., Peng, Y. et al. (1 more author) (2022) Inventory investment and the choice of financing: does financial development play a role? Journal of Corporate Finance, 74. 102139. ISSN 0929-1199
Abstract
This paper uses a panel of 224,604 Chinese firms over the period 2004–2009 linked with a set of unique city-level financial development data to examine how financial development affects the way corporate inventory investment is financed. We find that financial development enhances the use of interest-bearing loans and discourages the use of trade credit in financing inventory investment. These effects are more pronounced after the 2007 property rights reform, as well as for privately-owned firms, small firms, firms with no political connections, and firms located in coastal regions. Our results are robust to using a variety of different specifications, as well as different measures of financial development and estimation methods.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier. This is an author produced version of a paper subsequently published in Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Financing choice; Trade credit; Interest-bearing loans; Inventories; Financial development; Financing constraints |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 14 Mar 2022 10:54 |
Last Modified: | 08 Aug 2023 00:13 |
Status: | Published |
Publisher: | Elsevier BV |
Refereed: | Yes |
Identification Number: | 10.1016/j.jcorpfin.2021.102139 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:184667 |
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