2022
DOI: 10.1016/j.irfa.2022.102182
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Economic policy uncertainty and corporate financialization: Evidence from China

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Cited by 104 publications
(30 citation statements)
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References 45 publications
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“…Zhu et al (2021) argue that although corporate financialization arises from many reasons, such as the agency behavior of managers, the change in corporate governance concepts, and the crisis of profitability, the main source is the high return temptation of financial assets. Zhao and Su (2022) also employ the entity intermediary theory to explain corporate financialization. Some firms have easier access to financing from banks and then lend their spare funds to other firms through credit, acting as an entity intermediary.…”
Section: Literature Backgroundmentioning
confidence: 99%
“…Zhu et al (2021) argue that although corporate financialization arises from many reasons, such as the agency behavior of managers, the change in corporate governance concepts, and the crisis of profitability, the main source is the high return temptation of financial assets. Zhao and Su (2022) also employ the entity intermediary theory to explain corporate financialization. Some firms have easier access to financing from banks and then lend their spare funds to other firms through credit, acting as an entity intermediary.…”
Section: Literature Backgroundmentioning
confidence: 99%
“…We analyzed 1550 Chinese-listed local firms from 2011 to 2020. Applying effective and rigorous empirical methods of measuring financing constraints [15,18,19,91], corporate value [11], and multinationality [38,101,102]; and analyzing the data through the dynamic regression method [103], heterogeneity analysis [53][54][55], and 2SLS regression analysis [56,57], we demonstrate our theory. This study's main findings and their theoretical implications are threefold as follows.…”
Section: Instrumental Variables Analysismentioning
confidence: 84%
“…In terms of heterogeneity results, we not only refer to Dai and Zhang [53] but also Xue et al [54] for the analysis methods of different ownership types and firm sizes. We further extend the heterogeneity analysis at the level of financing constraints and multinationality based on the method of Zhao and Su [55]. After the analysis of various grouping methods, we further examine how financing constraints are still the main obstacle to the improvement of corporate value, especially for SOEs and large-scale enterprises.…”
Section: Introductionmentioning
confidence: 99%
“…The literature shows that various uncertainty indicators, tightly related to geopolitical risk, exert a significant impact on business risk. In fact, firms face more complexity in defining policy-related decisions in the presence operating uncertainties and unexpected jumps of earning volatility (Mirza and Ahsan, 2020; Wang et al ., 2021; Zhao and Su, 2022).…”
Section: Methodsmentioning
confidence: 99%