The Chinese Corporate Savings Puzzle: A Firmlevel Cross-country Perspective

China's high corporate savings rate is commonly claimed to be a key driver for the country's large current account surplus. The mainstream explanation for high corporate savings is a combination of windfall profits in state-owned firms, especially in resource sectors, and mis-governance of state-owned firms represented by their low dividend payout. The paper casts doubt on these views by comparing the savings of 1557 Chinese listed firms with those of 29330 listed firms from 51 other countries over 2002-07.

Provided by: International Monetary Fund Topic: CXO Date Added: Dec 2010 Format: PDF

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