Yan, Isabel K. and Chan, Kenneth S. and Dang, Vinh Q.T. (2011): Effects of Financial Liberalization and Political Connection on Listed Chinese Firms’ Financing Constraints. Forthcoming in: World Economy
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This paper examines the impact of recent financial liberalization in China on the financing constraints of publicly-listed Chinese firms with and without politically-connected CEO/Chairman. Two continuous indices are used to measure the evolution and intensity of financial reforms: a financial liberalization index and a capital control index. The results indicate that while firms without politically-connected CEO/Chairman face significant financing constraints and politically-connected firms do not, financial liberalization has reduced the constraints for the former. Similarly, lower capital control in China’s equity market lessens credit constraints for non-connected firms. No statistically-significant impact is detected with regards to firms that have CEO/Chairman with powerful political background.
|Item Type:||MPRA Paper|
|Original Title:||Effects of Financial Liberalization and Political Connection on Listed Chinese Firms’ Financing Constraints|
|Keywords:||Financial liberalization; investments; financing constraints; political connection; Chinese firms|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity
G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
|Depositing User:||Isabel Yan|
|Date Deposited:||07. Dec 2011 14:49|
|Last Modified:||23. Sep 2015 13:04|
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Financial liberalization, financing constraints and political connection: evidence from Chinese firms. (deposited 06. Dec 2011 13:54)
- Effects of Financial Liberalization and Political Connection on Listed Chinese Firms’ Financing Constraints. (deposited 07. Dec 2011 14:49) [Currently Displayed]