Please wait a minute...
Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

邮发代号 80-978

Frontiers of Economics in China  2018, Vol. 13 Issue (2): 281-311   https://doi.org/10.3868/s060-007-018-0016-5
  本期目录
Does Over-credit Stimulate Corporate Investment? Evidence from Listed Companies in China
Yuying Jin1(), Dong Zhao2()
1. R&D Administration, Shanghai University of Finance and Economics, Shanghai 200433, China
2. School of International Business Administration, Shanghai University of Finance and Economics, Shanghai 200433, China
 全文: PDF(695 KB)  
Abstract

We define and quantify for the first time over-credit at the firm level, which refers to the case in which the amount of bank credit that a firm obtains exceeds its expenditure on corporate investment for the year. Then, we explore how over-credit affects corporate investment to determine whether credit expansion in China is consistent with the principle of finance serving the real economy. The results show that over-credit promotes firm investment, and this effect was enhanced by the housing boom. However, the effect of the property market reversed after 2012, owing to China’s economic transition from a quantitative to a structural mismatch between supply and demand. Finally, we explore how over-credit affects the capacity utilization ratio and whether it has aggravated the overcapacity problem in China. The results show that over-credit reduces firms’ capacity utilization ratio. This finding indicates that excessive credit expansion has exacerbated the overcapacity problem in China.

Key wordsover-credit    corporate investment    capacity utilization ratio
出版日期: 2018-05-02
 引用本文:   
. [J]. Frontiers of Economics in China, 2018, 13(2): 281-311.
Yuying Jin, Dong Zhao. Does Over-credit Stimulate Corporate Investment? Evidence from Listed Companies in China. Front. Econ. China, 2018, 13(2): 281-311.
 链接本文:  
https://academic.hep.com.cn/fec/CN/10.3868/s060-007-018-0016-5
https://academic.hep.com.cn/fec/CN/Y2018/V13/I2/281
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed