Bank Background CEO and Enterprise Short-Term Loan and Long-Term Investment

Abstract

This paper takes A-share listed companies from 2008 to 2018 as samples, and discusses the relationship between bank background CEO and enterprise short-term loan and long-term investment. It is found that the CEO with banking background can significantly inhibit the short-term loan and long-term investment of enterprises. Compared with the highly market-oriented regions and state-owned enterprises, the CEO with banking background has a more obvious inhibitory effect on short-term loan and long-term investment of enterprises. In this paper additionally, PSM, lag variable and Heckman two-stage model are used for robustness test, and the above conclusions are still valid.