By Yu Qiao, Chen Jianbo, Yang Jiang, and Zhang Wei　

Date: 2002/08/27

Abstract:　

The paper examines the investment behaviors of large township and village enterprises that are not state-owned. The finding shows that the financial structure, market position and ownership status of the enterprises affect directly their investment decisions. Their investment is very sensitive to liquidity status and internal financing and is not correlated to the personalized bank-enterprise relationship. However, their investment is closely correlated to the market potential, product export and expenditure on research and development of the enterprises. The vague collective ownership has a negative effect on investment.