Lecture Title: A Production-Based Measure of Financial Constraints
Speaker: Li Jie, Jinan University
Lecture Time: April 23, 2026, 14:30
Lecture Location: Room 206 of the School
Abstract:
Considering the substitution between labor and capital in production, researchers solve the optimization problem and demonstrate that firms with financial constraints are likely to be associated with high marginal product of capital and low marginal product of labor. Using this as the identification strategy, researchers propose a production-based financial constraints measure using factors selected by machine-learning models. To validate this measure, researchers examine the impact offinancial constraints on (i) real economic performance, (ii) firms' responses to the 2008 financial crisis, (iii) investment-cash flow/price sensitivity, (iv) tax-debt sensitivity, (v) equity recycling, (vi) firm value, and (vii) real economic performance among private firms. The results suggest that compared with traditional measures including Kaplan-Zingales, Whited-Wu, and Hadlock-Pierce indices, researchers' financial constraints measure shows consistently superior performance in identifying firms that are more likely to be financially constrained.
Speaker Academic Profile:
Li Jie, Professor, Vice Dean of Jinan University Industrial Economics Research Institute, Doctoral Supervisor, Chief Expert for Ministry of Education Philosophy and Social Sciences Major Research Projects, AssociateEditor of international economics journal Review of International Economics, Executive Editor of Industrial Economics Review, Executive Editorial Board Member of Liaoning University Journal (Philosophy & Social Sciences Edition), Director of Guangdong Provincial Humanities and Social Sciences Key Laboratory "Industrial Big Data Application and Economic Decision Behavior Research Laboratory," Vice President of Guangdong Innovation Strategy Research Association, External Cooperative Supervisor for Sun Yat-sen University Applied Economics Doctoral Program. Main research areas include industrial economics, international trade, and corporate finance. Recently published over 40 papers in SSCI journals such as European Economic Review, Journal of Economic Behavior and Organization, Journalof Comparative Economics, Journal of International Money and Finance, and nearly 30 papers in domestic journals and newspapers including Economic Research, Quarterly Journal of Economics, World Economy, China Industrial Economics, Guangming Daily. Policy advisory reports have received positive feedback from central leaders.
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