IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2001-182.html
   My bibliography  Save this paper

An Attempt to Profile the Finances of China’s Enterprise Sector

Author

Listed:
  • Mr. Cem Karacadag
  • Mr. Paul J. Heytens

Abstract

This paper examines the leverage, efficiency, and debt-repayment capacity of the Chinese enterprise sector using aggregate and firm level data. The cash coverage of interest expense, in particular, is used as a bridge between enterprise finances and banks' asset quality in order to develop insights on banking soundness. The interest coverage analysis corroborates the high level of nonperforming loans in the financial system. This underscores the urgency of hardening budget constraints on state-owned enterprises and stemming the flow of new bad loans by accelerating ongoing structural reforms.

Suggested Citation

  • Mr. Cem Karacadag & Mr. Paul J. Heytens, 2001. "An Attempt to Profile the Finances of China’s Enterprise Sector," IMF Working Papers 2001/182, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2001/182
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=15467
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pomerleano, Michael, 1998. "The East Asia crisis and corporate finances : the untold micro story," Policy Research Working Paper Series 1990, The World Bank.
    2. Steinfeld,Edward S., 1998. "Forging Reform in China," Cambridge Books, Cambridge University Press, number 9780521633352, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. ECKAUS, Richard S., 2006. "China's exports, subsidies to state-owned enterprises and the WTO," China Economic Review, Elsevier, vol. 17(1), pages 1-13.
    2. Mr. Rupert D Worrell, 2004. "Quantitative Assessment of the Financial Sector: An Integrated Approach," IMF Working Papers 2004/153, International Monetary Fund.
    3. Mr. Reinout De Bock & Mr. Alexander Demyanets, 2012. "Bank Asset Quality in Emerging Markets: Determinants and Spillovers," IMF Working Papers 2012/071, International Monetary Fund.
    4. Antonio I Garcia Pascual & Mr. Jorge Cayazzo & Mrs. Socorro Heysen & Miss Eva Gutierrez, 2006. "Toward An Effective Supervision of Partially Dollarized Banking Systems," IMF Working Papers 2006/032, International Monetary Fund.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Modell, Sven & Yang, ChunLei, 2018. "Financialisation as a strategic action field: An historically informed field study of governance reforms in Chinese state-owned enterprises," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 54(C), pages 41-59.
    2. Ravi Ramamurti & Jenny Hillemann, 2018. "What is “Chinese” about Chinese multinationals?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 34-48, January.
    3. Corsetti, Giancarlo & Pesenti, Paolo & Roubini, Nouriel, 1999. "What caused the Asian currency and financial crisis?," Japan and the World Economy, Elsevier, vol. 11(3), pages 305-373, October.
    4. Jie Li & Jing Lu & Mobing Jiang, 2017. "Political Economy Model of Cross-Border Mergers Under Mixed Oligopoly," Pacific Economic Review, Wiley Blackwell, vol. 22(1), pages 83-100, February.
    5. Harvey, Campbell R. & Lins, Karl V. & Roper, Andrew H., 2004. "The effect of capital structure when expected agency costs are extreme," Journal of Financial Economics, Elsevier, vol. 74(1), pages 3-30, October.
    6. Diamond, Douglas W. & Rajan, Raghuram G., 2001. "Banks, short-term debt and financial crises: theory, policy implications and applications," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 54(1), pages 37-71, June.
    7. Giancarlo Corsetti & Paolo Pesenti & Nouriel Roubini, 1998. "What Caused the Asian Currency and Financial Crisis? Part II: The Policy Debate," NBER Working Papers 6834, National Bureau of Economic Research, Inc.
    8. Regina M. Abrami & Yu Zheng, 2010. "The New Face of Chinese Industrial Policy: Making Sense of Anti-Dumping Cases in the Petrochemical and Steel Industries," Harvard Business School Working Papers 11-042, Harvard Business School.
    9. Laixiang Sun & Damian Tobin, 2005. "International Listing as a Mechanism of Commitment to More Credible Corporate Governance Practices: the case of the Bank of China (Hong Kong)," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(1), pages 81-91, January.
    10. Yi Han & Enying Zheng & Minya Xu, 2014. "The Influence from the Past: Organizational Imprinting and Firms’ Compliance with Social Insurance Policies in China," Journal of Business Ethics, Springer, vol. 122(1), pages 65-77, June.
    11. Zhang, Yin-Fang & Parker, David, 2002. "Labour and Total Factor Productivity in the Chinese Electronics Industry in the 1990s," Centre on Regulation and Competition (CRC) Working papers 30628, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Charumilind, Chutatong & Kali, Raja & Wiwattanakantang, Yupana & ウィワッタナカンタン, ユパナ, 2002. "Crony Lending: Thailand before the Financial Crisis," CEI Working Paper Series 2002-4, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    13. Bris, Arturo & Koskinen, Yrjo, 2002. "Corporate leverage and currency crises," Journal of Financial Economics, Elsevier, vol. 63(2), pages 275-310, February.
    14. Kara, Alper & Hacihasanoglu, Yavuz Selim & Unalmis, Deren, 2021. "Financial contagion and the role of firm characteristics," Finance Research Letters, Elsevier, vol. 38(C).
    15. Liou, Chih-shian, 2014. "Rent-seeking at Home, Capturing Market Share Abroad: The Domestic Determinants of the Transnationalization of China State Construction Engineering Corporation," World Development, Elsevier, vol. 54(C), pages 220-231.
    16. Chutatong Charumilind & Raja Kali & Yupana Wiwattanakantang, 2006. "Connected Lending: Thailand before the Financial Crisis," The Journal of Business, University of Chicago Press, vol. 79(1), pages 181-218, January.
    17. Hakansson, Nils H., 1999. "The Role of a Corporate Bond Market in an Economy -- and in Avoiding Crises," Research Program in Finance, Working Paper Series qt6sq4c6g0, Research Program in Finance, Institute for Business and Economic Research, UC Berkeley.
    18. Bhattacharya, Utpal, 2005. "Financial liberalization and the stability of currency pegs," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 351-374, March.
    19. Tobin, Damian, 2005. "Economic Liberalization, the Changing Role of the State and "Wagner's Law": China's Development Experience since 1978," World Development, Elsevier, vol. 33(5), pages 729-743, May.
    20. Fulong Wu, 2002. "China's Changing Urban Governance in the Transition Towards a More Market-oriented Economy," Urban Studies, Urban Studies Journal Limited, vol. 39(7), pages 1071-1093, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2001/182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.