| Description |
1 online resource (32 pages) : color illustrations |
| Series |
IMF working paper ; WP/10/275 |
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IMF working paper ; WP/10/275.
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| Contents |
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Patterns from the Flow-of-Funds Data; 1. Decomposing China's Savings/GDP Ratio Using the Official Flow-of-Funds Data; 2. Corporate Savings/GDP: China versus Selected Other Countries; 3. Household and Government Savings in China and Other Selected Countries; III. A Close Look at Firm-level Data; A. Data and Summary Statistics; 1. Country Coverage and Basic Information; 2. Summary Statistics on Corporate Savings and Related Variables; B. Econometric Specification; C. Corporate Gross Savings |
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3. Corporate Gross Savings Over Assets4. Relative Gross Savings Rate Across Countries Conditional on Common Sector and Year Fixed Effects and Firm Size; D. Decomposing Gross Savings: Profits and Dividends; 5. Relative Profit and Dividend Rates Across Countries Conditional on Common Sector And Year Fixed Effects and Firm Size; 4. Profits over Assets; 5. Dividends over Assets; E. Investment and Net Savings; 6. Investment over Assets; 6. Relative Investment Rates and Net Savings Rate Across Countries Conditional on Common Sector and Year Fixed Effects and Firm Size; 7. Net Savings over Assets |
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F. Do Financial Constraints Raise the Savings by Non-state Firms?8a. Dependence for External Finance and Corporate Savings Behavior; 8b. Financial Constraints for State and Non-State Firms in China; G. Do Politically Connected Firms Save Less?; 9. Do Politically Better Connected Private Firms Save Less?; IV. Conclusion; References; Footnotes |
| Summary |
China's high corporate savings rate is commonly claimed to be a key driver for the country's large current account surplus. The mainstream explanation for high corporate savings is a combination of windfall profits in state-owned firms, especially in resource sectors, and mis-governance of state-owned firms represented by their low dividend payout. The paper casts doubt on these views by comparing the savings of 1557 Chinese listed firms with those of 29330 listed firms from 51 other countries over 2002-07. First, Chinese firms do not have a significantly higher savings rate (as a share of total assets) than the global average because corporations in most countries have a high savings rate. The rising corporate savings rate is also consistent with a global trend. Second, there is no significant difference in the savings behavior and dividend patterns between Chinese majority state-owned and private listed firms, contrary to the received wisdom |
| Bibliography |
Includes bibliographical references (pages 31-32) |
| Notes |
English |
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Print version record |
| Subject |
Corporations -- China -- Finance
|
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Self-financing -- China
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Corporations -- Finance
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Self-financing
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China
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| Form |
Electronic book
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| Author |
Tong, Hui.
|
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Wei, Shang-Jin.
|
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International Monetary Fund. Strategy, Policy, and Review Department.
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International Monetary Fund. Research Department.
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| ISBN |
128356386X |
|
9781283563864 |
|
1455211583 |
|
9781455211586 |
|
9781455210824 |
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145521082X |
|
1455221570 |
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9781455221578 |
|
9786613876317 |
|
6613876313 |
|
