A c c e p t e d M a n u s c r i p t Highlights Chinese firms' leverage ratios decrease when the economic policy uncertainty increases. This effect is heterogeneous across firms in terms of regional marketization, ownership and bank-firm relationship. This effect is sourced from the deterioration of the external financing environment imposed by economic policy uncertainty Firms adjust their financing structures by using more trade credit when economic policy uncertainty increases. relationships, mitigate the negative effect of policy uncertainty. Moreover, we provide consistent evidence that this negative effect is sourced from the deterioration of the external financing environment. We also find that firms adjust their financing structures by using more trade credit when economic policy uncertainty increases. Our results are robust to sample selection, data frequency, model specification and endogeneity.
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The Chinese capital market has attracted increasing academic attention due to its rising global influence, ongoing regulatory reforms, and distinct institutional background. In this paper, we review scholarly accounting and finance research pertaining to the Chinese capital market in Mainland China published in Tier 1 and Asia-Pacific regional journals during the 1999-2018 period. Our review is based along four dimensions: top-cited articles, main research fields, frequently contributing authors, and emerging research trends. We find that the increasing presence of China in global capital markets, along with its ongoing economic reforms, provides academics with opportunities to investigate distinct institutional environments and utilize natural experiments. This has led to the formulation of novel accounting and finance research questions, greatly advancing our understanding of accounting and finance research.
In this paper, we study the impact of endogenous innovation and the external technological environment on total factor productivity. We first develop an endogenous growth model and derive a testable empirical model. We then estimate the empirical model based on the World Bank's worldwide enterprise survey data for 119 countries spanning 2007-2017. Our results suggest that: (i) enterprises' R&D activity increases their total factor productivity; (ii) a higher level of external technology weakens the impact of the R&D activity on total factor productivity; and (iii) enterprises located in low-and middle-income countries often lack continuous innovation.
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