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ID: 159073

Monetary policy, cash holding and corporate investment: evidence from China / Yang, Xingquan

Yang, Xingquan	Journal Article
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Summary/Abstract

This paper uses 13,766 firm-year observations between 2003 and 2013 from China to investigate the effects of monetary policy on corporate investment and the mitigating effects of cash holding. We find that tightening monetary policy reduces corporate investment while cash holdings mitigate such adverse effects. The cash mitigating role is especially significant for financially constrained firms, non-state-owned enterprises (non-SOEs) and those firms located in a less developed financial market. Cash holding also improves investment efficiency when monetary policy is tightening and tightening monetary policy enhances the ‘cash-cash flow’ sensitivity. Our empirical evidence calls for a critical evaluation on the monetary policies implemented in China which are less effective for state-owned enterprises. It also calls for a necessity for local government to further develop regional financial markets to protect vulnerable businesses, such as non-SOEs and financially constrained firms, from external shocks in order to maintain their sustainable growth and competitive advantages.

Key Words

Monetary Policy ; Financial Constraints ; Corporate Investment ; Cash Holding

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ID: 121782

Value-chain agriculture and debt relations: contradictory outcomes / Mcmichael, Philip

Mcmichael, Philip	Journal Article
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2013.

Summary/Abstract

In the context of the world food crisis 'value-chain agriculture' is emerging as a new frontier of publicly subsidised corporate investment, incorporating smallholding farmers into commercial relations to redress apparent food shortages. This paper conceptualises value-chains as technologies of economic and ecological power, using cross-regional case studies to explore the impact of debt relations in extant value-chain relations. While the value-chain project envisioned by the development industry in partnership with the private sector is geared to 'feeding the world' the likely outcome is (differentiating) smallholders serving corporate markets at the expense of local food security. I argue that developmentalists seek to resolve the crisis through a 'spatio-temporal fix', enclosing smallholders in value-chain technologies financed through debt relations that appropriate value from smallholder communities. At the same time some farmers are seeking to avoid the debt trap by developing strategies to decommodify farming practices to preserve and revitalise their farms as creators of ecological values, rather than simply converters of economic value.

Key Words

Economic Value ; World Food Crisis ; Corporate Investment ; Commercial Relations ; Value - Chain Relations ; Local Food Security

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