The impact of uncertainty on firm investment: evidence from machinery industry in Liaoning province of China

The Sensitivity of Firms’ Investment to Uncertainty and Cash Flow: Evidence From Listed State-Owned Enterprises and Non-State-Owned Enterprises in China

“…Moreover, the coefficients for Tobin's Q and Sg are not statistically different from zero. Therefore, we find no evidence in support to the accelerator theory of investment, which corroborates with Baum et al (2010) and Bo and Zhang (2002). Furthermore, diagnostic tests are provided at the end of each table.…”

“…However, SOEs in the transition economy have never faced demand uncertainty, and they are not affected by uncertainty in factor markets in a transition economy. Bo and Zhang (2002) find an insignificant influence of demand and supply uncertainties on investment for state enterprises of the Chinese machinery industry, whereas the investment of collective enterprises is positively affected by labor cost uncertainty. The aforementioned research finds no evidence supporting accelerator theory of investment for their sample firms.…”

“…autoregressive model AR(1) for total sales normalized by capital stock for each firm (Baum et al, 2016;Bo & Zhang, 2002;Caglayan & Rashid, 2014):…”

Investment behavior of MSMEs during the downturn periods: Empirical evidence from Vietnam

“…As mentioned earlier, most empirical studies of firms' investment behaviors use either the Q model or the accelerator model (e.g. Lensink and Sterken 2000 ; Bo and Zhang 2002 ). While the panel data we use do not have sufficient data points in the time series direction to construct Q for each sample firm, the data do allow us to estimate an accelerator model, which may be written as follows: …”

Determinants of firms’ investment behaviour: a multilevel approach

“…Here, researchers follow two distinct approaches. On the one hand, researchers measure uncertainty using micro data; for instance Ninh et al (2004), Darku (2000), and Pattillo (1998) proxy uncertainty using firms' expectations of future sales, supply, and/or sales growth and Leefmans (2011), Shiferaw (2009, and Bo and Zhang (2002) measure uncertainty using data on firms' volatility of supply and/or demand and/or labour costs. On the other hand, Kumo (2006), Aizenman and Marion (1999), Serven (1998), and Serven and Solimano (1993) conduct a macroeconomic study where uncertainty measurements include volatility of GDP growth, volatility of real effective exchange rate, term of trade volatility, inflation.…”