Overseas operations and corporate financial asset allocation

Using data on Chinese listed companies for 2008-2018,we find that firms participating in overseas operations,proxied by overseas subsidiaries,generally have higher financial asset allocations than other firms.At the micro level,the effects are more pronounced when the parent company faces serious financing constraints,has no overseas returned executives,has a business that is inconsistent with that of its overseas subsidiaries and has overseas subsidiaries that experience losses.At the macro level,the effects are more pronounced when overseas operations are in OECD and Belt and Road countries,or in areas with higher economic or political risks and greater investment opportunities.Financial asset allocation helps mitigate cash flow fluctuations and operational risks for multinational firms.This study advances research on the determinants of financial asset allocation and has implications relevant to the Chinese government’s“Go Global”and Belt and Road strategies and its efforts to realize a developed financial sector to service the Chinese economy.

Financial Development, Foreign Direct Investment, and the Efficiency of Capital Allocation in China

We study the roles of local financial development and foreign direct investment, and more importantly, their interaction with one another, in local capital allocation, based on Chinese industrial and regional data. Our main finding is that, although local financial development and FDI each individually tended to improve the efficiency of local capital allocation during the sample period, they tended to compete and crowd out each other＇s effect, so that one impaired the individual function of the other. In particular, there exists a threshold value for local financial development, above which an increase in FDI reduces the efficiency of local capital allocation, rather than improve it. On the other hand, there exists a threshold value for FDI, above which further development in the local financial system lowers the efficiency of local capital allocation, rather than increase it. Our estimations suggest that the levels of FDI and local financial development in some relatively more developed Chinese regions have already surpassed such threshold values. We provide some interpretations of our findings and we discuss potential policy implications.

Government Intervention and Support on SMEs Firm Performance

The small and medium enterprise firms are renowned for improving the na­tion’s economy through the provision of job opportunities for its populace,improving the financial and investment status of the countries and provi­sion of innovative products that meets the need of the people.SMEs are key players in the economy,through sustainable development goals(SDGs)enabling them to thrive in the open business environment and actively applying the digital transformation,promoting inclusive and sustainable in­dustrialization should be the core of any country government.This research is designed to explore the influence of government intervention and support on enterprise performance and growth in five business sectors-Hospitality,Education,Health care,Bottled Water Production and Transport and Logis­tics organizations.The research paper had a descriptive research design with a randomly selected sample size of one hundred and ninety-seven respondents.The research hypotheses were tested using(Factor Analysis and Ordinal Logistic Regression Analysis)with Statistical Packages for Social Science(SPSS)version 25.The results of the study reveal that gov­ernment intervention policies and intervention programmes when instituted will promote the growth of business firms in Nigeria.Also identified are relevant recommendations that serve as motivation for policy administra­tors,entrepreneurs,and business managers to ensure that relevant interven­tion programme is adopted to boost performance and growth of the SME sector in Nigeria.