Journal article
Does foreign demand affect corporate financialization? Some evidence from China
Emerging markets review, v 65, 101232
Mar 2025
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We investigate whether foreign demand influences corporate financialization using data from over 1700 Chinese non-financial firms during 2007–2016. Our findings consistently reveal a negative relationship, indicating that firms increase their financial asset holdings and more actively engage in financial transactions when foreign demand declines, and vice versa when foreign demand rises. Foreign demand shapes firms' financialization by influencing their returns from real investments and financial constraints. Furthermore, we explore heterogeneous impacts of foreign demand across different financial assets, industries, and indebtedness levels in firms.
•We explore the influence of foreign demand on corporate financialization.•Corporate financialization rises with declining foreign demand and falls with booming foreign demand.•Foreign demand affects firm returns from real investments and financial constraints.•The impacts of foreign demand on corporate financialization are heterogeneous.
Metrics
23 Record Views
Details
- Title
- Does foreign demand affect corporate financialization? Some evidence from China
- Creators
- Tayier TudiJi WuMinghua ChenBang Nam Jeon
- Publication Details
- Emerging markets review, v 65, 101232
- Publisher
- Elsevier; AMSTERDAM
- Number of pages
- 26
- Grant note
- Guanghua Talent Project of Southwestern University of Finance and EconomicsCentral University Basic Research Operation Funds
Ji Wu and Minghua thank the support of the Guanghua Talent Project of Southwestern University of Finance and Economics. Ji Wu thanks the support from the Central University Basic Research Operation Funds.
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:001374499800001
- Scopus ID
- 2-s2.0-85210694300
- Other Identifier
- 991021985101504721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance
- Economics