Credit Expansion, Corporate Finance and Overinvestment: Recent Evidence from China

Autor:	Winnie P. H. Poon, Michael Firth, Jianfu Shen
Rok vydání:	2016
Předmět:	Economics and Econometrics 050208 finance Capital structure business.industry Cross-collateralization 05 social sciences Financial system Equity issuance Corporate finance Investment decisions Loan Bridge loan 0502 economics and business 050207 economics Non-conforming loan business Finance
Zdroj:	Pacific-Basin Finance Journal. 39:16-27
ISSN:	0927-538X
DOI:	10.1016/j.pacfin.2016.05.004
Popis:	This paper examines the impacts of a recent credit expansion event on corporate policies in China. During the credit boom in 2009 and 2010, the large and state-owned firms increased leverage ratios by 2.89% and 1.68% (on a quarterly basis) more than their matched firms. State-owned firms had higher increases in loan financing and corporate investment than their matched firms due to government intervention and better access to the credit market. Small and non-state-owned firms had no significant change in loan financing but undertook less net equity issuance than did the matched firms during this stimulated boom. These findings shed significant light on the effects of bank lending segmentation on capital structure and corporate investment decisions in response to macroeconomic shocks in China.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9ffd647ee10c1bf5afac73f056e00b0b https://doi.org/10.1016/j.pacfin.2016.05.004 Zobrazit plný text záznamu Full Text from ScienceDirect