How does international trade affect US corporate investment? Evidence from the asset tangibility channel

被引：1

作者：

Burke, Qing L. ^{[1
]}

Wang, Mengying ^{[2
]}

Xu, Xiaolu ^{[2
]}

机构：

[1] Miami Univ, 501 E High St, Oxford, OH 45056 USA

[2] Univ Massachusetts, 100 William T,Morrissey Blvd, Boston, MA 02125 USA

来源：

INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2020年 / 70卷

关键词：

International trade; US imports; Competition; Asset tangibility; Capital investment; IMPORT COMPETITION; DEBT CAPACITY; MARKET; PROFITABILITY; LIQUIDITY; GROWTH; IMPACT; FIRMS;

D O I：

10.1016/j.iref.2020.06.040

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine how international trade affects corporate investment through its impact on asset tangibility. We hypothesize that when foreign export reduces a domestic firm's asset tangibility, the firm's response of capital investment to internal funds decreases. Using 2SLS regressions, we first document foreign export supply reduces domestic firms' asset tangibility. Next, using a reduced-form investment regression, we find that as international trade-induced asset tangibility declines, capital investment responds less to cash flow. This study enhances our understanding of the consequences of international trade in the context of corporate finance by highlighting the influence of trade-induced financing frictions on corporate investment.

引用

页码：41 / 54

页数：14

共 41 条

[1] Import Competition and the Great US Employment Sag of the 2000s [J].