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Institutional development and financing decisions: evidence from a cross-regional study on Chinese listed firms
Nancy Huyghebaert,Lihong Wang +1 more
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In this article, the authors empirically investigate how differences in the development of legal and financial institutions across Chinese provinces and municipalities affect the financing decisions of Chinese listed firms and find that a stronger regional enforcement of property rights reduces firms' reliance on bank loans.Abstract:
In this paper, we empirically investigate how differences in the development of legal and financial institutions across Chinese provinces and municipalities affect the financing decisions of Chinese listed firms. Our results indicate that a stronger regional enforcement of property rights reduces firms’ reliance on bank loans. Conversely, in regions with a larger government expropriation risk, firms raise more and shorter-term bank debt. Active regional bank lending positively impacts the debt ratio and the fraction of bank loans, but shortens loan maturities. The size of the local banking sector, the market capitalization as well as the liquidity of local stocks bear no relation with the capital structure. Overall, these relations do not depend upon the identity of the firm's controlling shareholder. Nonetheless, our results do suggest that state-controlled firms benefit from easier stock market access.read more
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Do Banks Value Green Management in China? The Perspective of the Green Credit Policy
Chao Xing,Yuming Zhang,Yuan Wang +2 more
TL;DR: In this article, the authors explored the relationship between green management and companies' access to bank loans in the context of China's green credit policy and found that green management can significantly improve firms' loan size.
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Redistribution of China's Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?
TL;DR: In this paper, the authors focus on a redistribution mechanism among environment-friendly manufacturing firms, namely, determine whether the effects of the green credit policy differ between small and medium-sized environmentfriendly manufacturing enterprises (SMEMEs) and large environment friendly manufacturing entities (LEMEs).
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Leverage, Debt Maturity and Corporate Performance: Evidence from Chinese Listed Companies
TL;DR: Li et al. as mentioned in this paper examined the relationship between leverage, debt maturity, and firm performance, employing a large panel of Chinese non-financial listed firms, and found positive associations between leverage and the proportion of long-term debt, and between leverage between firm performance.
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The financial and operational impacts of European SMEs' use of trade credit as a substitute for bank credit
TL;DR: In this paper, the authors studied the impacts of the use of trade credit on SME financial performance and operational distress in a sample of 74,036 SMEs across 19 EU countries between 2006 to 2015.
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How gradualist are Chinese reforms? Evidence from rural income determinants
Yasheng Huang,Meijun Qian +1 more
TL;DR: Using income determinants in rural China as the me... as discussed by the authors, a strategy that implements partial and incremental reforms at the beginning but gradually deepens the reforms over time is proposed.
References
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Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
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Determinants of corporate borrowing
TL;DR: In this article, the authors predict that corporate borrowing is inversely related to the proportion of market value accounted for by real options and rationalize other aspects of corporate borrowing behavior, such as the practice of matching maturities of assets and debt liabilities.
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Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
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Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
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Financial Intermediation and Delegated Monitoring
TL;DR: In this paper, the authors developed a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders, and presented a characterization of the costs of providing incentives for delegated monitoring by a financial intermediary.