Pandemic effect on corporate financial asset holdings: Precautionary or return-chasing?

Gao, Haoyu; Wen, Huiyu; Wang, Xingjian

doi:10.1016/j.ribaf.2022.101750

Cited by 14 publications

(2 citation statements)

References 58 publications

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“…Higher reversibility can reduce the impact of deleveraging while strengthening the impact of decapacity on corporate capital investment. Existing studies primarily focus on the impact of factors on corporate capital allocation, such as economic policy uncertainty (Huang et al [3]; Gao et al [4]), corporate social responsibility (Bhandari and Javakhadze [5]), political ideology (Kempf et al [6]; Hu and Xu [7]), environmental regulation (Liu and Liu, 2022 [8]) and industrial policy (Zhou and Zhao [9]). However, corporate capital allocation has rarely been studied from the perspective of actual corporate operations.…”

Section: Plos Onementioning

confidence: 99%

Deleveraging and decapacity: A comparative analysis of corporate capital allocation based on asset reversibility

Jia,

Sang,

et al. 2023

PLoS ONE

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China’s stimulus policies have caused overleveraging and overcapacity for the sustainable development of most industries (particularly high-pollution and energy-intensive industries). Thus, deleveraging and decapacity have become the two best options for the above industries to achieve long-term sustainable development. Based on China’s A-share listed companies from 2009 to 2019, this study investigated the effect of deleveraging and decapacity on corporate capital allocation using fixed effects, propensity score matching (PSM) and difference-in-differences (DID). A homogeneity analysis of geographical and firm characteristics was also conducted. The results show that: (1) Deleveraging and decapacity can significantly increase financial capital allocation by 3.67%, and decapacity can increase investment-related capital allocation by 0.63%. This indicates asset allocation optimization for sustainable development. (2) High asset reversibility can weaken the effect of deleveraging on financial capital allocation while strengthening the effect of decapacity on capital investment. (3) The impact of deleveraging and decapacity may vary among companies due to heterogeneous asset reversibility resulting from geographical locations and technological intensities. Given the current global energy crisis, optimizing capital allocation has become essential in addressing resource shortages and achieving long-term sustainable development. This study may provide a reference for alleviating corporate capital misallocation.

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Section: Plos Onementioning

confidence: 99%

Deleveraging and decapacity: A comparative analysis of corporate capital allocation based on asset reversibility

Jia,

Sang,

et al. 2023

PLoS ONE

View full text Add to dashboard Cite

show abstract

“…Financial assets are one type of asset that can be an option in investing (Gao et al, 2022). The value of financial assets obtained from contractual rights or ownership claims (Liu et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Implementation of Stochastic Model for Risk Assessment on Indonesian Stock Exchange

Maruddani

Trimono

Mas’ad

2023

Medstat

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Currently, financial assets become an alternative choice for investors in Indonesia to get maximum profits. The Indonesia Stock Exchange is the official capital market in Indonesia which is a place for trading financial assets. Stocks are listed as the most preferred financial asset by investors. In reality, stock investment is not a risk-free investment. The main risk that investors should face is the loss risk. This kind of risk can occur at any time. From that problem, this study aims to do risk assessment on the Indonesian stock market. The evaluation will be started with stock price index prediction using the Stochastic model (Geometric Brownian Motion Model and Jump Diffusion). Then, the result from that processes will be used to get loss risk prediction through the Adjusted Expected Shortfall model. By using the historical price of JKSE index from 01/08/21 to 31/08/22, Jump Diffusion is the best model to predict the JKSE index with MAPE value is 1.08%. Then, at the 95% confidence level and 1-day holding period, the expected loss risk using Adjusted Expected Shortfall model on 09/01/2022 is -0.02978.

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Does environmental concern drive financial assets? Evidence from China

Huang,

Su,

Chen

2024

Borsa Istanbul Review

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Pandemic effect on corporate financial asset holdings: Precautionary or return-chasing?

Cited by 14 publications

References 58 publications

Deleveraging and decapacity: A comparative analysis of corporate capital allocation based on asset reversibility

Deleveraging and decapacity: A comparative analysis of corporate capital allocation based on asset reversibility

Implementation of Stochastic Model for Risk Assessment on Indonesian Stock Exchange

Does environmental concern drive financial assets? Evidence from China

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