Through a proprietary dataset of small and medium-sized enterprises (SMEs) on China's National Equities Exchange and Quotations (NEEQ), we examine the impact of venture capital (VC) backup on access to bank loans by SMEs. We find that VC backup can help SMEs obtain more bank loans under better conditions and significantly relieve their financing constraint. This is especially meaningful for private SMEs, those in hightech, in regions of less-developed banking industry, or with lower quality accounting information. This study may have policy implications as a pilot 'combined debt-equity financing' discussion in the context of the largest bank-based economy.

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We examine the impact of environmental information disclosure (EID) on heavy polluters' access to bank loans. Through a proprietary dataset of listed heavy polluters in China between 2011 and 2018, we find that the quality of EID positively contributes to their access to bank loans. Furthermore, banks rely more on EID in lending practice to heavy polluters in less-developed regions, with poor internal control, or with state ownership. Our findings support the effectiveness of EID in China's loan market and may have policy implications for the green management of heavy polluters in emerging markets.

Reputation is of vital importance to venture capitals (VCs). Emerging young VCs may have more incentives to grandstand through initial public offerings (IPOs) in the stock market. We examine grandstanding and IPOs on the Shanghai and Shenzhen stock exchanges between 5 June 2006 and 10 May 2012 when deregulation allows explosive growth of VCs in China. We find that grandstanding is mainly by the private VCs and has noticeable impact on the two stock exchanges. Furthermore, private VCs heavily grandstand through speculation of newly listed stocks rather than through underpricing among early IPOs. Joint investment by private and non‐private VCs may effectively inhibit the speculation of new stocks. Our findings have policy implications in the largest emerging market's context.

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