Financial Asset and Long-term Investment of China’s Listed Firms
International Journal of Social Science and Education Research, (2025), Vol.8, No.4, pp.228-244
Published: March 11, 2025
Abstract
Using panel data of China’s A-share listed companies from 2010 to 2023, this article empirically tests the impact of financial assets on corporate long-term investment through system GMM method. In order to deal with endogeneity issues, this article conducted robustness tests using propensity score matching method. It’s found that corporate financialization inhibits long-term investment. The results remained unchanged after excluding observations during the 2008 financial crisis and the COVID-19 epidemic. Heterogeneity analysis shows that the impact of financialization on corporate long-term investment is greater among private firms, manufacturing firms and smaller firms.
Keywords:
Financial Assets; Long-term Investment; Crowding out Effect; System GMM; Propensity Score Matching.
APA Citation:
Lingmao Kong (2025). Financial Asset and Long-term Investment of China’s Listed Firms. International Journal of Social Science and Education Research, 8(4), 228-244. https://doi.org/10.6918/IJOSSER.202504_8(4).0025
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