In this study,we use bank loan information to construct proxies for corporate transparency and examine whether these measures reflect information asymmetry in the stock market.Our analysis is based on a novel dataset ...In this study,we use bank loan information to construct proxies for corporate transparency and examine whether these measures reflect information asymmetry in the stock market.Our analysis is based on a novel dataset of stock transactions and bank loans of all publicly listed firms on the Shenzhen Stock Exchange,covering January 2008 to June 2013.We find that firms with outstanding loans have a lower level of information asymmetry in the stock market,whereas firms with defaulted loans have a higher level of asymmetry.Further evidence demonstrates that the effect of loan default on information asymmetry in the stock market is more pronounced when these loans are borrowed from joint-equity commercial banks or multiple banks and when the default occurs under inactive market conditions.Our results remain robust to a series of endogeneity and sensitivity tests and provide suggestive evidence of a close connection between the credit loan and stock markets.展开更多
This paper sets out to observe the governance effect of the heterogeneous debts on the overinvestment behavior by Chinese companies.On this basis,the authors examined the different relationships between heterogeneous ...This paper sets out to observe the governance effect of the heterogeneous debts on the overinvestment behavior by Chinese companies.On this basis,the authors examined the different relationships between heterogeneous debts and over-investment.The study results indicate that various types of debt have different governance effect on over-investment.Trade credit can curb over-investment effectively and bank loans may exacerbate over-investment.展开更多
Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally...Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally incorporated foreign banks over展开更多
Between 2005 and 2007,the China Development Bank offered 1.66 billion yuan($237 million) worth of loans to 243,000 stu- dents from poor families in central China’s Henan Province.
In this paper,we consider the financing issues in a supply chain where the capitalconstrained retailer should use limited funds to pay for both order and sales.The retailer decides the retail price,order quantity exan...In this paper,we consider the financing issues in a supply chain where the capitalconstrained retailer should use limited funds to pay for both order and sales.The retailer decides the retail price,order quantity exante and sales effort expost,and he supports these operational activities by two financing sources:bank loan and trade credit.We illustrate that in this two-stage problem,the price-setting retailer’s equilibrium sales effort and retail price are both related to the market realization value and the retailer’s cash level.These two financing sources are both able to stimulate the retailer to promote sales.If the retailer’s cash level is reasonably high,both parties(supplier and retailer)benefit from trade credit.By contrast,if the retailer’s cash level is low,trade credit may discourage the retailer from sales promotion.Counterintuitively,our study shows that the retailer spends more on sales when the market is good than when it is bad.展开更多
This paper examines whether and how the adoption of eXtensible Business Reporting Language(XBRL)reduces information asymmetry in loan contracting.We hypothesize that the adoption of XBRL can enhance information dissem...This paper examines whether and how the adoption of eXtensible Business Reporting Language(XBRL)reduces information asymmetry in loan contracting.We hypothesize that the adoption of XBRL can enhance information dissemination and mitigate the information asymmetry problem between borrowers and lenders.Using a sample of 554 US bank loan contracts,we find that borrowers who adopt XBRL enjoy more favourable price and nonprice terms of bank loan contracts.Additional analyses indicate that the relations among XBRL adoption and bank loan price vary with loan structure.Overall,this research provides evidence that technology advancements such as XBRL reduce cost of bank loans by decreasing information asymmetry between borrowers and lenders.展开更多
基金supported by grants from the National Natural Science Foundation of China(72103017,72192800)Fundamental Research Funds for the Central Universities(ZY2130)+1 种基金Funds for First-class Discipline Construction(XK1802-5)“the Fundamental Research Funds for the Central Universities”in UIBE(17DQ08).
文摘In this study,we use bank loan information to construct proxies for corporate transparency and examine whether these measures reflect information asymmetry in the stock market.Our analysis is based on a novel dataset of stock transactions and bank loans of all publicly listed firms on the Shenzhen Stock Exchange,covering January 2008 to June 2013.We find that firms with outstanding loans have a lower level of information asymmetry in the stock market,whereas firms with defaulted loans have a higher level of asymmetry.Further evidence demonstrates that the effect of loan default on information asymmetry in the stock market is more pronounced when these loans are borrowed from joint-equity commercial banks or multiple banks and when the default occurs under inactive market conditions.Our results remain robust to a series of endogeneity and sensitivity tests and provide suggestive evidence of a close connection between the credit loan and stock markets.
文摘This paper sets out to observe the governance effect of the heterogeneous debts on the overinvestment behavior by Chinese companies.On this basis,the authors examined the different relationships between heterogeneous debts and over-investment.The study results indicate that various types of debt have different governance effect on over-investment.Trade credit can curb over-investment effectively and bank loans may exacerbate over-investment.
文摘Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally incorporated foreign banks over
文摘Between 2005 and 2007,the China Development Bank offered 1.66 billion yuan($237 million) worth of loans to 243,000 stu- dents from poor families in central China’s Henan Province.
基金This work is supported in part by National Natural Science Foundation of China[grant number 71125003],[grant number 71421002].
文摘In this paper,we consider the financing issues in a supply chain where the capitalconstrained retailer should use limited funds to pay for both order and sales.The retailer decides the retail price,order quantity exante and sales effort expost,and he supports these operational activities by two financing sources:bank loan and trade credit.We illustrate that in this two-stage problem,the price-setting retailer’s equilibrium sales effort and retail price are both related to the market realization value and the retailer’s cash level.These two financing sources are both able to stimulate the retailer to promote sales.If the retailer’s cash level is reasonably high,both parties(supplier and retailer)benefit from trade credit.By contrast,if the retailer’s cash level is low,trade credit may discourage the retailer from sales promotion.Counterintuitively,our study shows that the retailer spends more on sales when the market is good than when it is bad.
文摘This paper examines whether and how the adoption of eXtensible Business Reporting Language(XBRL)reduces information asymmetry in loan contracting.We hypothesize that the adoption of XBRL can enhance information dissemination and mitigate the information asymmetry problem between borrowers and lenders.Using a sample of 554 US bank loan contracts,we find that borrowers who adopt XBRL enjoy more favourable price and nonprice terms of bank loan contracts.Additional analyses indicate that the relations among XBRL adoption and bank loan price vary with loan structure.Overall,this research provides evidence that technology advancements such as XBRL reduce cost of bank loans by decreasing information asymmetry between borrowers and lenders.
