Question
How Financial Constraints Affect Corporate Value: A Empirical Study on China Company 1.Introduction As China is making a great reform of its capital market and
How Financial Constraints Affect Corporate Value:
A Empirical Study on China Company
1.Introduction
As China is making a great reform of its capital market and financial system, which has changed the financial constraints(David J Bryce and Michael Useem, 1998), the approach to assess the company is waiting to innovate. Eliseu Alves et al. (2008) has made a new method to estimate the company value. ............The situation is shown in figure 1.
Figure 1
.........
2. Literature Review
Michele Graziano Ceddia et al. (2013) provide a new approach of complex system. Private firm is definitely different from state-owned firms, so the valuation method shall be adjusted to its benchmark (Alfonso ARojo-Ramrez, 2014)..............
........
However, we can make 3 Hypothesizes:
H1: ......
H2: ......
H3: ......
.......
3. Empirical analysis
In order to exploit a new model for China capital market, we have to change the classical model as below:
(1)
In the equation (1), we denote the firm i, SML as the index ......, INF as the inflation factor, X as the control variables.
(1) Data source
We get the data from Yahoo finance, the data is described in the table 1.
TABLE 1 data description
Max
Min
Mean
St.D
SML
123.456
12.34
75.13
21.67
INF
123.456
12.34
75.13
21.67
X3
123.456
12.34
75.13
21.67
......
......
......
......
......
After regression, we get the table 2 below
TABLE 2
Coefficients
St.D
T-value
P-value
SML
123.456***
12.34
75.13
0.0001
INF
123.456**
12.34
2.98
0.002
X3
123.456
12.34
1.13
0.14
......
......
......
......
......
*** Significant at the 1 percent level.
** Significant at the 5 percent level.
* Significant at the 10 percent level.
From the result of regression, we can find .......
The H1 is proved. ......
.......
4. Conclusions and Policy implication
In this paper, we develop the new model, which maybe contribute to the company valuation method of developing countries......
........
........
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Practicing Financial Planning
Authors: Sid Mittra, Anandi P Sahu, Brian Fischer
12th Edition
9386042851, 9789386042859
