Internal conflict and Bank liquidity creation: Evidence from the belt and Road initiative
| Autor: | Junjiang Li, Bo Gao, Benye Shi, Xiaojuan Wang |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
040101 forestry
050208 finance education 05 social sciences Economic strategy Financial system 04 agricultural and veterinary sciences Market liquidity Host country 0502 economics and business 0401 agriculture forestry and fisheries Business Management and Accounting (miscellaneous) Business China human activities health care economics and organizations Finance Internal conflict |
| Zdroj: | Research in International Business and Finance. 53:101227 |
| ISSN: | 0275-5319 |
| DOI: | 10.1016/j.ribaf.2020.101227 |
| Popis: | The Belt and Road Initiative is the most important international economic strategy in the 21st Century initiated by China. In this paper, we conduct the first international study on the effects of the host country’s internal conflict risk of the Belt and Road Initiative on bank liquidity creation, one of the key functions banks provide for the public. We find that the host country’s internal conflict risk negatively affects bank liquidity creation. The results are also economically significant and robust to subsample tests. It also indicates that Chinese firms that will conduct foreign investments in the countries of the Belt and Road Initiative should take the host country’s internal conflict risk into account. |
| Databáze: | OpenAIRE |
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