Browse > Article
http://dx.doi.org/10.5392/JKCA.2021.21.02.548

The Influences of Fixed Assets on Corporate Performance - Evidence from Manufacturing-listed Companies in China  

Lv, Yeqing (경희대학교 마게팅학과)
Zheng, Ziyang (건국대학교 부동산학과)
Wang, Yuan (건국대학교 부동산학과)
Publication Information
The Journal of the Korea Contents Association / v.21, no.2, 2021 , pp. 548-561 More about this Journal
Abstract
Manufacturing is a pillar industry for national economic growth. Analyzing the internal problems of manufacturing enterprises can solve the difficulties faced by manufacturing enterprises and improve the overall performance of manufacturing enterprises.This study selected 1,546 listed manufacturing companies in Shenzhen and Shanghai stock markets from 2009 to 2015, and empirically analyzed the relationship between fixed assets and corporate performance by using the fixed effect model and the two-way fixed effect model.The study finds 1) the scale of fixed assets has a negative effect on corporate performance. 2) the quality of fixed assets has a weak positive relationship with fixed assets. 3) the growth rate of fixed assets impacts corporate performance positively.
Keywords
Fixed Assets; Manufacturing Companies; Corporate Performance; Chinese Listed Companies;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Anthony Kyereboah-Coleman, "The impact of capital structure on the performance of microfinance institutions[J]," The Journal of Risk Finance, Vol.8, No.1, pp.56-71, 2007.   DOI
2 Mohammad M. Bahaman, "Access to Financing and Firm Growth[J]," Journal of Research in International Business and Finance, Vol.38, No.1, pp.299-311, 2016.   DOI
3 Mahfuzah Salim, and Raj Yadav, "Capital Structure and Firm Performance: Evidence from Malaysian Listed Companies[J]," Procedia-Social and Behavioral Sciences, Vol.65, pp.156-166, 2012.   DOI
4 S. Chadha and A. K. Sharma "Capital Structure and Firm Performance: Empirical Evidence from India [J]," Business Perspective, Vol.19, No.4, pp.295-302, 2015.   DOI
5 Demsetz, Villalonga B. "Ownership structure and corporate performance[J]," Journal of Corporate Finance, Vol.7, pp.209-233, 2001.   DOI
6 K. H. Zhang, "China's Manufacturing Performance and Industrial Competitiveness Upgrading," CHINA'S DOMESTIC TRANSFORMATION, p.297, 2015.
7 D. H. Bao, "Change in inventory and firm valuation," Review of Quantitative Finance and Accounting, Vol.22, No.1, pp.53-71, 2004.   DOI
8 Panayotis Kapopoulos and Sophia Lazaretou, "Corporate Ownership Structure and Firm Performance: evidence from Greek firms[J]," Corporate Governance An International Review, Vol.15, No.2, pp.144-158, 2007.   DOI
9 K. K. Ryu and J. H. Yoo, "Relationship between management ownership and firm value among the business group affiliated firms in Korea[J]," Journal of Comparative Economics, Vol.39, No.4, pp.557-576, 2011.   DOI
10 Paolo Saona Hoffmann, "Internal Corporate Governance Mechanisms as Drivers of Firm:Panel Data Evidenee for Chilean Firms[J]," Review of Managerial Science, Vol.8, No.4, pp.575-604, Paolo. 2014.   DOI
11 A. G. Reyhani, "The investigation of effect of assets structure on performance of accepted companies of Tehran Stock Exchange (TSE)," Journal of Basic Applied Scientific Reasearch, Vol.2, No.2, p.1086, 2012.
12 M. E. Ocal, E. L. Oral, E. Erdis, and G. Vural, "Industry financial ratios-application of factor analysis in Turkish construction industry," Building and Environment, Vol.42, No.1, pp.385-392, 2007.   DOI
13 T. A. Papadogonas, "The financial performance of large and small firms: evidence from Greece," International Journal of Financial Services Management, Vol.2, No.1-2, pp.14-20, 2007   DOI
14 M. Herly, "Corporate governance and firm performance in Indonesia," International Journal of Governance, Vol.1, No.2, pp.384-403, 2011.
15 R. Morck, A. Shleifer, and R. W. Vishny, "Management ownership and market valuation: An empirical analysis," Journal of financial economics, Vol.20, pp.293-315, 1988.   DOI
16 Chelsea Levinson, Definition of the Manufacturing Industry, 2018, Available from https://bizfluent.com/facts-6853113-definition-manufacturing-industry.html (accessed October 13, 2020)
17 N. Michaelas, F. Chittenden, and P. Poutziouris, "Financial policy and capital structure choice in UK SMEs: Empirical evidence from company panel data," Small business economics, Vol.12, No.2, pp.113-130, 1999.   DOI
18 J. C. Hartman, "Multiple asset replacement analysis under variable utilization and stochastic demand," European Journal of Operational Research, Vol.159, No.1, pp.145-165, 2004.   DOI
19 R. D. Cohen, "The optimal capital structure of depository institutions," Wilmott Magazine, pp.38-49, 2003.
20 G. Agiomirgianakis, F. Voulgaris, and T. Papadogonas, "Financial factors affecting profitability and employment growth: the case of Greek manufacturing," International Journal of Financial Services Management, Vol.1, No.2-3, pp.232-242, 2006.   DOI
21 Booth' Laurence, Varouj Aivazian, Asli Demirguc-Kunt, and Vojislav Maksimovic, "Capital structures in developing countries[J]," Journal of Finance, Vol.56, pp.87-130, 2001.   DOI
22 R. Rajan and A. Winton, "Covenants and collateral as incentives to monitor," The Journal of Finance, Vol.50, No.4, pp.1113-1146, 1995.   DOI
23 Alan A. Bevan and Jo. Donbolt, On the Determinants and Dynamics of UK Capital Structure[R], Working Paper, 2001.
24 K. Hammes, Firm Performance, Debt, Bank Loans and Trade Credit-An Empirical Study, Working paper, Department of Ecomomics, Gotherburg University, 2003.
25 A. B. Czyzewski and D. W. Hicks, "Hold onto your cash," Strategic Finance, Vol.73, No.9, p.27, 1992.