An Analysis of the Differences in Corporate Savings Rates
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| Title | An Analysis of the Differences in Corporate Savings Rates
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| Author | Xie Shiqing and Mo Taiping |
| Organization | School of Economics, Peking University |
| Email | shiqing_xie@126.com,peace01234@126.com |
| Key Words | Gross Savings; Corporate Savings Rate; Financial Development; Financing Constraints |
| Abstract | High gross savings rate in China brings out a series of internal and external economic imbalances and corporate savings rate, as a part of three sector savings rates, contributes most to the problem. Given that Chinese corporate savings rate is still accumulating, this paper conducts an empirical analysis of the factors on a firm’s savings rate and the influences of financial development upon it, based on the data of 6796 listed firms collected from the RESSET and CCER databases. The investigation has the three following main findings: (1) a firm’s financial indices such as firm size, growth, capacity to satisfy its long-term obligations have influences on its saving decision. Besides, the firm’s ownership and monopoly types also make a difference; (2) financial development can generally reduce a firm’s savings rate, while the magnitude and significance depend on the firm’s ownership and monopoly types; (3) financial development decreases the influences of a firm’s capacity to satisfy its short-term obligations and profitability upon its savings rate. |
| Serial Number | WP378 |
| Time | 2012-09-27 |
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