Work

Sino–US trade frictions and corporate investment

Year: 2025

Type: article

Abstract: We examine the impact of Sino–US trade frictions on corporate investment of Chinese listed firms. The results show that: (1) Firms are affected by Sino–US trade frictions significantly reduce their capital expenditures; (2) The negative effect is more salient for firms with stronger financial constraints and higher value of waiting to invest; (3) Firms increase R&D investment when firms affected by trade frictions; (4) The overall investment efficiency increases by reducing the over-investment projects. This paper enriches literature on the economic consequences of trade frictions and the relationship between trade uncertainty and corporate investment.

Source: Finance research letters

DOI: 10.1016/j.frl.2025.107218

Authors: Yanqiong Li, Dongning Li, Jie He

Institutions: Shanxi University, Zhongnan University of Economics and Law

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,730

OpenAlex ID: W4408515005

FWCI: 13.5

Cites: 30

Cited by: 5

Related to: 10