标题：Institutions and Corporate Investment: Evidence from an Implied Return on Capital inChina汇报人：Qiao Liu (UniversityofHong Kong)

功夫：12月22日（周二）10:00-11:30am

地址：拉斯维加斯9888新楼216教室

提要：Applying generalized method of moments (GMM) estimators derived from a structural investment model to a large sample of Chinese industrial firms, we estimate the stochastic discount rates Chinese firm managers apply to discount investment projects. Examination of the cross-sectional and time-series distributions of this inferred return on capital shows how institutions affect corporate investment effciency. We document robust evidence that ownership is the primary institutional factor affecting firm-level returns on capital inChina. The implied return on capital for a non-state firm is approximately 10 percentage points higher than that of an otherwise equal state firm. We also find that privatization leads to an improvement in corporate investment effciency. Using data on the universe ofChina's listed firms, we further

document that firms with higher levels of corporate governance have higher returns on capital. Our analysis shows that redirecting capital from less effcient state sector to more effcient private sector is socially beneficial.