This study examines the impact of financial asset allocation on enterprise upgrading in the Chinese A-share market from 2012 to 2021. It finds a dual influence: short-term financial assets promote upgrading, while long-term assets inhibit it, resulting in an inverted U-shaped relationship. Risk-taking capacity and earnings persistence mediate this relationship. The impact varies across different enterprise types, significantly affecting over-indebted, non-state-owned, and high financing constraint firms.
Publisher
Humanities and Social Sciences Communications
Published On
May 15, 2023
Authors
Ke Guo, Xuemeng Guo, Jun Zhang
Tags
financial asset allocation
enterprise upgrading
A-share market
short-term assets
long-term assets
risk-taking capacity
earnings persistence
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