Anwar, Sajid, and Sun, Sizhong (2013) Presence of foreign firms and the firm capital structure: evidence from China's manufacturing sector. In: Proceedings of the 42nd Australian Conference of Economists: beyond the frontiers: new directions in economics. From: The 42nd Australian Conference of Economists: beyond the frontiers: new directions in economics, 7-10 July 2013, Perth, WA, Australia.

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Abstract

This paper argues that there is a link between foreign presence and the leverage of domestic firms. This link is empirically evaluated by using firm level panel data from China. The empirical estimation based on (i) the Tobit and (ii) the Instrumental Variable Tobit regression reveals that, in overall terms, the impact of foreign presence on the leverage of domestic firms in China's manufacturing sector is negative. We find that the negative impact on the leverage of privately owned firms is relatively large. We expect the impact of foreign presence on the leverage of domestic firms to vary from industry to industry.

Item ID:	28958
Item Type:	Conference Item (Research - E1)
ISBN:	978-1-921877-12-4
Keywords:	foreign direct investment; capital structure; panel data analysis; China
Date Deposited:	03 Sep 2013 02:18
FoR Codes:	14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation @ 100%
SEO Codes:	91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910203 Industrial Organisations @ 100%
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