Abstract
TWe study the impact of both microeconomic factors and the macroeconomy on the financial distress of Chinese listed companies over a period of massive economic transition, 1995 to 2006. Based on an economic model of financial distress under the institutional setting of state protection against exit, and using our own firm-level measure of distress, we find important impacts of firm characteristics, macroeconomic instability and institutional factors on the hazard rate of financial distress. The results are robust to unobserved heterogeneity at the firm level, as well as those shared by firms in similar macroeconomic founding conditions. Comparison with related studies for other economies highlights important policy implications.
| Original language | English |
|---|---|
| Place of Publication | St. Andrews |
| Publisher | Centre for Research into Industry, Enterprise, Finance and the Firm |
| Number of pages | 38 |
| Publication status | Published - 2010 |
Publication series
| Name | CRIEFF Discussion Papers |
|---|---|
| Publisher | Centre for Research into Industry, Enterprise, Finaace and the Firm, University of St. Andrews |
| No. | 1001 |
| ISSN (Print) | 1364-453X |
Keywords
- Financial distress
- Macroeconomic instability
- Cox Proportional Hazards Model
- Unobserved Heterogeneity
- Emerging economies
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Dive into the research topics of 'Financial Distress in Chinese Industry: Microeconomic, Macroeconomic and Institutional Influences'. Together they form a unique fingerprint.Research output
- 1 Discussion paper
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Financial Distress in Chinese Industry: Microeconomic, Macroeconomic and Institutional Infuences
Bhattacharjee, A. & Hany, J., 2010, St. Andrews: Scottish Institute for Research in Economics , 39 p. (SIRE Discussion Papers; no. 2010-53).Research output: Working paper/Preprint › Discussion paper
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