Do productive firms get external finance? Evidence from Chinese listed manufacturing firms

Chen, Minjia; Matoušek, Roman

doi:10.1016/j.irfa.2019.101422

Cited by 17 publications

(5 citation statements)

References 91 publications

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“…Firms that do not have an active investment project will propose one to the banking system, seeking financing. Investment projects carry a random return (this can be considered similar to the internal rate of return, IRR), which will help the firm increase productive capacity, as argued by Chen and Matousek (2020) . For a project to be accepted, the firm must find a willing financier for the venture, with a cost of capital lower than the project’s return.…”

Section: Methodology and Datamentioning

confidence: 99%

Economic stimulus through bank regulation: Government responses to the COVID-19 crisis

Polyzos

Samitas

Kampouris

2021

Journal of International Financial Markets, Institutions and Mo

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In this paper, we estimate the effects of the COVID-19 pandemic on the banking system and the real economy and simulate potential policy responses. We combine machine learning algorithms, namely a Random Regression Forest and a Long Short Term Memory neural network, with an agent-based framework to calculate the expected results of the pandemic, according to different scenarios regarding financial stability. We then simulate government responses to this crisis and find that traditional demand and supply stimuli are outperformed by our suggestion of relaxing bank regulation. We examine two alternatives of our suggested policy and find that they result in optimised outcomes for most variables examined. Our findings have important policy implications as authorities are formulating post-crisis recovery plans amidst budgetary constraints.

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Section: Methodology and Datamentioning

confidence: 99%

Economic stimulus through bank regulation: Government responses to the COVID-19 crisis

Polyzos

Samitas

Kampouris

2021

Journal of International Financial Markets, Institutions and Mo

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“…In the agent-based setup, firms that are currently not expanding capacity with an active investment project will seek financing by proposing a project to the banking system. Firms are associated with a random probability for project failure and each project carries a random return, which represents the increase in firm productive capacity (Chen & Matousek, 2020).…”

Section: Firmsmentioning

confidence: 99%

The perfect bail‐in: Financing without banks using peer‐to‐peer lending

2023

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We explore the potential outcomes for financial stability when using peer‐to‐peer lenders to finance economic activity. Combining Random Regression Forests, a machine‐learning process, with an agent‐based model, we perform simulations on artificial economies with various degrees of adoption of peer‐to‐peer lending. We find that as peer‐to‐peer lenders proliferate, there is increased financial instability, lower GDP and higher unemployment. On the other hand, peer‐to‐peer lending increases the total volume of loans given out but demonstrates a preference towards consumer loans (over corporate loans), which has a negative effect in the long run. Finally, introducing peer‐to‐peer lenders increases the access of the unbanked to services which conventional banking is not able to offer within the extant regulatory framework. Our results can help policymakers as they address the issue of regulation in the peer‐to‐peer finance industry.

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“…Put simply, unlike in controlled experiments, the obtained coefficients may be biased by overlooked unobservable confounding factors, which in my empirical research question are represented by the strategic decision to improve the level of gender diversity engagement in line with unobservable country‐specific aptitudes which finally determine banks' boardroom diversity. I tackle this possible bias following Chen and Matousek (2020) and run a PSM weighted regression controlling for the existence of unobserved heterogeneity between low (control banks) and high (treated banks) language gender‐marking countries.…”

Section: Additional Tests and Robustness Checksmentioning

confidence: 99%

Gendered language and board diversity: Evidence from European banks

Piserà

2023

Int. J Fin Econ

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Based on a sample of EU banks covering the period 2007 to 2021, I explore the impact of gendered language on bank board diversity policies. I find that gendered language negatively affects banks' gender diversity practices, especially after the passage of board reforms. Further, I find that rule of law and government efficiency explain the relationship, suggesting that these are useful mechanisms to reduce the negative effect of language gender‐marking orientation on banks' gender diversity practices. However, results do not show a statistically significant effect of board gender diversity on riskiness of banks operating in countries with higher language gender orientation. My study provides a timely contribution to the literature by filling the gap regarding the importance of language gender‐marking orientation in explaining banks' diversity practices and suggesting that regulators and institutions should take stronger actions aimed at reducing such cross‐country heterogeneity. It also provides useful insights for EU regulators following the passage of the mandatory “Women on Boards” Directive in 2022.

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Do productive firms get external finance? Evidence from Chinese listed manufacturing firms

Cited by 17 publications

References 91 publications

Economic stimulus through bank regulation: Government responses to the COVID-19 crisis

Economic stimulus through bank regulation: Government responses to the COVID-19 crisis

The perfect bail‐in: Financing without banks using peer‐to‐peer lending

Gendered language and board diversity: Evidence from European banks

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