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Equity financing restrictions and the asset growth effect: International vs. Asian evidence

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dc.contributor.authorHuang, Alan Guoming
dc.contributor.authorSun, Kevin Jialin
dc.date.accessioned2020-03-18T16:17:22Z
dc.date.available2020-03-18T16:17:22Z
dc.date.issued2019-10
dc.descriptionThe final publication is available at Elsevier via https://doi.org/10.1016/j.pacfin.2018.08.007. © 2018. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.description.abstractThis paper investigates the driver of asset growth to explain the cross-country variation of the asset growth effect. We find that institutional restrictions on equity financing constrain firms' abilities to grow assets, and the degree of such restrictions is associated with the observed cross-country variations of the asset growth effect. Specifically, the asset growth effect is weaker in countries with more restrictions on stock issuance and buyback. In horserace tests, equity financing restrictions supersede legal system, stock market development, and information transparency in explaining the cross-country differences of the effect. We highlight our results through a comparison of two Asian countries—Korea and China—with the United States. Our results provide evidence that country financial regulations dampen certain sources of risks in asset prices.en
dc.identifier.urihttps://doi.org/10.1016/j.pacfin.2018.08.007
dc.identifier.urihttp://hdl.handle.net/10012/15698
dc.language.isoenen
dc.publisherElsevieren
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectasset growthen
dc.subjectstock returnsen
dc.subjectinstitutional restrictionsen
dc.subjectstock issuanceen
dc.subjectbuybacken
dc.subjectinternational marketsen
dc.subjectAsianen
dc.subjectKoreaen
dc.subjectChinaen
dc.titleEquity financing restrictions and the asset growth effect: International vs. Asian evidenceen
dc.typeArticleen
dcterms.bibliographicCitationAlan Guoming Huang, Kevin Jialin Sun , Equity financing restrictions and the asset growth effect: International vs. Asian evidence. Pacfin (2018), doi:10.1016/j.pacfin.2018.08.007en
uws.contributor.affiliation1Faculty of Artsen
uws.contributor.affiliation2School of Accountancyen
uws.peerReviewStatusRevieweden
uws.scholarLevelFacultyen
uws.typeOfResourceTexten

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