Will Debtor Firms Gain from Unexpected Inflation?——Evidence from China Based on Nominal Contracting Hypothesis

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Abstract Applying the data of China listed companies over the 1991-2014 period and fixed-effect regress, it is found that our results support nominal contracting hypothesis, implying that firms with debts gain from increase in unexpected inflation and more debts induce more gains for debtor firms. Firms with more short-term monetary contracts are less affected by higher-than-unexpected inflation. Returns of cyclical industries and public utilities are more sensitive to the unexpected inflation than other industries, because they own more long-term contracts.

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	LI Li-Fang
	LV Shi-Ji

Key words： International R& D Financial Development Carbon Productivity International R& D Financial Development Carbon Productivity International R& D Financial Development Carbon Productivity International R& D Financial Development Carbon Productivity Unexpected Inflation Monetary Position Stock Return Nominal Contracting Hypothesis

Received: 2015-01-13

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