The contraction of Chinese shadow banking and corporate investment behavior
Evidence from the background of the “New Rules on asset management
Bibliographic Data
| ID | 6045451 |
|---|---|
| Authors | Zhibin Ji (Zhongnan University of Economics and Law), Naide Ye (0009-0002-6976-1409, Shanghai Jiao Tong University, corresponding author), Dongmin Kong (0000-0001-5981-0452, Huazhong University of Science and Technology) |
| Year | 2024 |
| Volume | 4 |
| Issue | 2 |
| Pages | 119-132 |
| Publication date | 2024-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | China Economic Quarterly International (JOURNAL) |
| Journal identifiers | ISSN: 2666-9331 • E-ISSN: 2666-9331 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.ceqi.2024.06.003 |
| OpenAlex | W4399849754 |
| Language | EN |
| References cited | 12 |
Employing the exogenous scenario of the “New Rules on Asset Management” in April 2018, this paper tries to explore the impact of the contraction of Chinese shadow banking on corporate investment behavior. This paper finds that the regulation leads to a 18.3% decrease in capital expenditure for firms relying on shadow banking system prior to the shock. Then, this paper tests three underlying mechanisms, which include the decrease of corporate borrowing, the increase of corporate financing constraints and the reduction of debt maturity. This paper also provides the empirical evidence that the implementation of the “New Rules on Asset Management” optimizes the allocation of capital across firms
Business · Computer security · Economics · Financial system · Linguistics · Monetary economics · Banking stability, regulation, efficiency · Computer Science · Insurance and Financial Risk Management · Psychology
| Citation velocity | historical |
|---|---|
| Highly cited | No |