Decision-based trades: An analysis of institutional investors’ information advantages

Jiao, Yawen

doi:10.1016/j.jempfin.2022.07.009

Journal of Empirical Finance

2022

DOI: 10.1016/j.jempfin.2022.07.009

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Decision-based trades: An analysis of institutional investors’ information advantages

Yawen Jiao

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2024

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Cited by 2 publications

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The signalling role of the government‐market relationship in debt financing: Evidence from China

Yuan,

Meng

2024

Australian Economic Papers

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A proper government‐market relationship (GMR) serves as an important institutional environment for investors to make rational economic decisions. Theoretically, by embedding the GMR into the signalling model, this study finds that (a) the improvement in the GMR can enable high‐return firms to obtain more debt financing and (b) the mechanism is that a higher GMR, as a signal, increases the accuracy of investors' inference on firms' returns. Using data of Chinese A‐share listed firms (2009–2019) and the two‐step system GMM, this study empirically demonstrates that the GMR does help investors infer firms' returns more accurately, thus enlarging the debt financing scales of high‐return firms. Moreover, the positive impact of the GMR on high‐return firms is significant within privately owned firms and more substantial in markets characterised by lower industry concentration.

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The signalling role of the government‐market relationship in debt financing: Evidence from China

Yuan,

Meng

2024

Australian Economic Papers

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Managerial myopia and corporate financialization: Evidence from China

Zhang,

Liu,

et al. 2024

Financ Manag Account

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While managerial characteristics significantly impact corporate strategies, the role of managerial myopia in corporate financialization remains underexplored. Using data from a sample of 20,881 firm‐year observations of Chinese firms from 2007 to 2019, we examine how managerial myopia influences corporate financialization. We find that managerial myopia promotes corporate financialization. The results are robust to various measures of financialization, alternative specifications, and considerations of endogeneity. Further analysis reveals that external supervision, indicated by analyst attention and institutional investor shareholdings, mitigates the positive effect of managerial myopia on corporate financialization. By contrast, corporate pressures, such as default risk and competitive pressure, amplify the tendency toward financialization.

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Decision-based trades: An analysis of institutional investors’ information advantages

Cited by 2 publications

References 36 publications

The signalling role of the government‐market relationship in debt financing: Evidence from China

The signalling role of the government‐market relationship in debt financing: Evidence from China

Managerial myopia and corporate financialization: Evidence from China

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