TY - JOUR
T1 - Firm size, source of finance, and growth
T2 - evidence from China
AU - Du, Jun
AU - Girma, Sourafel
PY - 2012/11
Y1 - 2012/11
N2 - Using a comprehensive firm-level data set from China spanning the period 1998–2005, this study investigates the relationship between firm size, financing sources, and total factor productivity growth. Controlling for the endogeneity of financing sources, we find that firm size plays an important role in the way financial structure affects the growth process. Domestic bank loans are more effective for bigger firms, while self-raised finance is more beneficial to smaller firms’ growth. We also uncover evidence that ownership mediates the relationship between firm size, finance, and growth.
AB - Using a comprehensive firm-level data set from China spanning the period 1998–2005, this study investigates the relationship between firm size, financing sources, and total factor productivity growth. Controlling for the endogeneity of financing sources, we find that firm size plays an important role in the way financial structure affects the growth process. Domestic bank loans are more effective for bigger firms, while self-raised finance is more beneficial to smaller firms’ growth. We also uncover evidence that ownership mediates the relationship between firm size, finance, and growth.
KW - China
KW - growth
KW - finance
UR - http://www.scopus.com/inward/record.url?scp=84868275672&partnerID=8YFLogxK
UR - http://www.tandfonline.com/10.1080/13571516.2012.715272
U2 - 10.1080/13571516.2012.715272
DO - 10.1080/13571516.2012.715272
M3 - Article
SN - 1357-1516
VL - 19
SP - 397
EP - 419
JO - International Journal of the Economics of Business
JF - International Journal of the Economics of Business
IS - 3
ER -