Back
 JFRM  Vol.5 No.1 , March 2016
A Review of Inventory Investment: The Macro and Micro Perspective
Abstract: This article combed the domestic and foreign researches on inventory investment since 1990. We find that researches mainly focus on the macro level of the relationship between inventory investment and business cycle, the effects of inflation or interest rates on inventory adjustment. While in the micro enterprise level, they study the determiners of inventory investment, including financing constraints, size and location. Besides, the role of inventory investment behavior on corporate performance has not yet reached a consensus. Based on the analysis of the existing literatures, we put forward the possible directions for future research in the field of inventory in-vestment, combining with China’s specific conditions.
Cite this paper: Huang, J. (2016) A Review of Inventory Investment: The Macro and Micro Perspective. Journal of Financial Risk Management, 5, 57-62. doi: 10.4236/jfrm.2016.51007.
References

[1]   Benati, L., & Lubik, T. A. (2014). Sales, Inventories and Real Interest Rates: A Century of Stylized Facts. Journal of Applied Econometrics, 29, 1210-1222.
http://dx.doi.org/10.1002/jae.2408

[2]   Binvin, D. G. (2010). Inventories and Interest Rates: A Stage of Fabrication Approach. B.E. Journal of Macroeconomics, 10, 29-29.

[3]   Blinder, A. S., & Maccini, L. J. (1991). Taking Stock: A Critical Assessment of Recent Research on Inventories. Journal of Economic Perspectives, 5, 73-96.
http://dx.doi.org/10.1257/jep.5.1.73

[4]   Cannon, A. R. (2008). Inventory Improvement and Financial Performance. International Journal of Production Economics, 115, 581-593.
http://dx.doi.org/10.1016/j.ijpe.2008.07.006

[5]   Capkun, V., Hameri, A. P., & Weiss, L. (2009). On the Relationship between Inventory and Financial Performance in Manufacturing Companies. International Journal of Operations and Production Management, 29, 789-806.
http://dx.doi.org/10.1108/01443570910977698

[6]   Carpenter, R., Fazzari, S. M., & Petersen, B. C. (1998). Financing Constraints and Inventory Investment: A Comparative Study with High-Frequency Panel Data. Review of Economics and Statistics, 80, 513-519.
http://dx.doi.org/10.1162/003465398557799

[7]   Chikán, A., & Kovács, E. (2009). Inventory Investment and GDP Characteristics in OECD Countries. International Journal of Production Economics, 118, 2-9.
http://dx.doi.org/10.1016/j.ijpe.2008.08.004

[8]   Dimelis, S. P., & Lyriotaki, M. N. (2007). Inventory Investment and Foreign Ownership in Greek Manufacturing Firms. International Journal of Production Economics, 108, 8-14.
http://dx.doi.org/10.1016/j.ijpe.2006.12.045

[9]   Eroglu, C., & Hofer, C. (2011). Lean, Leaner, Too Lean? The Inventory-Performance Link Revisited. Journal of Operations Management, 29, 356-369.
http://dx.doi.org/10.1016/j.jom.2010.05.002

[10]   Jones, C. S., & Tuzel, S. (2013). Inventory Investment and the Cost of Capital. Journal of Financial Economics, 107, 557- 579.
http://dx.doi.org/10.1016/j.jfineco.2012.09.001

[11]   Lai, R., Robb, D., & Ren, Z., (2010). The Geography of Chinese Inventory. Working Paper, The Wharton School, the University of Pennsylvania, Philadelphia.

[12]   Lin, F. B. (2010). On the Problem of Excess Production Capacity from the View of Fluctuation of the Inventory Investment. Asia-Pacific Economic Review, 2, 115-118.

[13]   Lv, F. Y. (2014). Periodic Relationship between Inventory Adjustment and Output Volatility: Research Based on the Data of Listed Manufacturing Companies. On Economic Problems, 3, 76-82.

[14]   Maccini, L. J., Moore, B. J., & Schaller, H. (2004). The Interest Rate, Learning, and Inventory Investment. American Economic Review, 5, 1303-1327.
http://dx.doi.org/10.1257/0002828043052295

[15]   Maccini, L. J., Moore, B., & Schaller, H. (2015). Inventory Behavior with Permanent Sales Shocks. Journal of Economic Dynamics and Control, 53, 290-313.
http://dx.doi.org/10.1016/j.jedc.2015.02.010

[16]   Metzler, L. A. (1941). The Nature and Stability of Inventory Cycles. Review of Economic Statistics, 23, 113-129.
http://dx.doi.org/10.2307/1927555

[17]   Pong, C. K. M., & Mitchell, F. (2012). Inventory Investment & Control: How Have UK Companies Been Doing? The British Accounting Review, 44, 173-188.
http://dx.doi.org/10.1016/j.bar.2012.07.008

[18]   Ramey, V. A. & West, K. D. (1999). Chp13. Inventories. In J. B. Taylor, & M. Woodford (Eds.), Handbook of Macroeconomics (Vol. 1, pp. 863-923). Dutch: Elsevier.

[19]   Rao, P. G., Yue, H., & Jiang, G. H. (2013). Expected Inflation and Firms’ Inventory Adjustment. Working Paper, Jinan University & Beijing University.

[20]   Robb, D. J., Liu, F., Lai, R., & Ren, Z. J. (2012). Inventory in Mainland China: Historical, Industry, and Geographic Perspectives. International Journal of Production Economics, 135, 440-450.
http://dx.doi.org/10.1016/j.ijpe.2011.08.020

[21]   Wen, Y. (2005). Understanding the Inventory Cycle. Journal of Monetary Economics, 52, 1533-1555.
http://dx.doi.org/10.1016/j.jmoneco.2004.10.009

[22]   Xu, Z., & Yao, M., (2008). Inventory Management and Firm Performance: An Empirical Analysis of Listed Chinese Manufacturers. Shantou University Journal (Humanities & Social Sciences), 24, 60-64.

[23]   Xu, Z. W., Xue, H. X., & Che, D. W. (2012). On the Cyclical Behaviors of Chinese Inventory Investments. Economic Research Journal, 8, 81-92.

[24]   Yang, J. Sh., Yang, J. H., & Wu, X. J. (2015). Inflation Cycle, Financing Constraints and the Dynamic Adjustment Strategies of Firms Inventories. Journal of Management Science, 9, 55-64.

[25]   Yi, G., & Wu, R. H. (2000). Inventory and Production Fluctuations—Theory Review and Preliminary Analysis of the Chinese Situation. Finance and Trade Economics, 6, 17-22.

[26]   Yngve, A., & Jochen, H. (2011). Inventory Investment and Production in Europe During the “Great Recession”: Is There a Pattern? International Journal of Production Economics, 132, 174-177.
http://dx.doi.org/10.1016/j.ijpe.2011.03.023

[27]   Yu, J., Wang, Z. C., & Gan, R. C. (2005). Inventory Investment, Inflation and the Business Cycle. Chinese Journal of Management Science, 10, 267-271.

[28]   Zhang, T., An, L., & Chen, H. (2010). 5000 Enterprises Inventory Index and the Fluctuation of Economy. Journal of Financial Research, 7, 35-44.

 
 
Top