Work

Cash flow uncertainty, ownership structure and corporate real estate holding

Year: 2024

Type: article

Abstract: This study examines the relationship between cash flow uncertainty and corporate real estate holdings and investigates the role of ownership structure. Using a dataset of A-share listed companies in China, we find that there is a significantly negative association between cash flow uncertainty and corporate real estate holdings, and this effect is more pronounced for private enterprises (non-SOEs). The results hold firmly after performing various methods to address potential endogeneity and a set of related robustness tests. From the perspective of supply-led and debt cost discrimination, we also demonstrate that state-owned enterprises (SOEs) can benefit from favourable credit discrimination, which mitigates the impact of cash flow uncertainty.

Source: Applied Economics

DOI: 10.1080/00036846.2024.2386859

Authors: Jie Deng, Hao Liu, Huaibing Yu, Zonghao Chen

Institutions: Guangdong University of Foreign Studies, Southern Medical University, Kean University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4401466166

FWCI: 0.816

Cites: 48

Cited by: 3

Related to: 10