What Drives Fixed Asset Holding and Risk-Adjusted Performance of Corporates in China? An Empirical Analysis
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 141-164 |
| Journal / Publication | International Real Estate Review |
| Volume | 15 |
| Issue number | 2 |
| Publication status | Published - 1 Jun 2012 |
Link(s)
Abstract
This paper attempts to shed light on the over-investment debate by investigating listed firms in China. Firms with a higher level of fixed asset holding and overhead expenses, and covered by preferential tax policies in China are found to be associated with lower risk-adjusted performance. In addition, the preferential tax policies encourage fixed asset investment. In contrast to some of the previous literature, state-ownership of firms, dividend policies, and ownership concentration are not robust predictors of risk-adjusted performance, and debt level, managerial shareholding, and profit per unit of asset are not robust predictors of fixed asset investments.
Research Area(s)
- Corporate real estate, Fixed asset holding, Over-investment theory, State-ownership, Tax-favor policy
Bibliographic Note
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Citation Format(s)
What Drives Fixed Asset Holding and Risk-Adjusted Performance of Corporates in China? An Empirical Analysis. / Dong, Yan; Leung, Charles Ka Yui; Cai, Dongliang.
In: International Real Estate Review, Vol. 15, No. 2, 01.06.2012, p. 141-164.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
