Institutional Environment, Blockholder Characteristics and Ownership Concentration in China

The Effect of Political Connections on Forward- Looking Information Disclosure From the Perspective of the Stakeholder Salience Theory

“…Specifically, the estimated coefficient of CONNECT posits that PCONS disclose FWDLOOK 21 points higher than non-PCONS. This finding is consistent with the results found by Liu (2015), Huang and Zhao (2016) and Du et al (2009). However, the positive effects of CONNECT to promote FWDLOOK are only significant for NONFINFL types (see Model 5).…”

“…We derive the argument of this study from the stakeholder salience theory, i.e., the higher the position of a political director/manager in the government, the more the influence (in terms of power, legitimacy or urgency) the director/manager has on the firm's forward-looking information disclosure. This expectation is similar to that of Huang and Zhao (2016) and Du and Xiu (2009). We also examine the types of connections to determine the level of disclosure of forward-looking information.…”

How do neighboring peer companies influence SMEs’ financial behavior?

“…Similarly, Michelacci and Silva (2007) build a regional financial development indicator that determines firms' credit availability. Du and Xiu (2009) focus on the relationship between regional governments, regional markets and legal systems, highlighting the relevance of regional factors for the firms located in the territory. Fan et al (2013) indicate that regions with dense and stronger social and economic networks also have robust economic systems that, among other things, provide adequate financing to their companies.…”

La incidencia de los entornos regionales sobre las restricciones financieras en pequeñas y medianas empresas

“…Michelacci y Silva (2007) construyeron una medida del desarrollo financiero local mediante la creación de un indicador que mide la facilidad con la que se obtiene un crédito en un lugar determinado. Du y Xiu (2009) identifican la relación que existe entre el gobierno y el mercado, así como el desarrollo de los intermediarios del mercado y el sistema jurídico como componentes importantes de los entornos regionales. De acuerdo con estos autores, en las regiones en donde las relaciones anteriores son intensas, los entornos jurídicos son mejores.…”

“…Asimismo, la relación que existe entre el índice de gasto gubernamental (IGG) y el ICF también es significativa. Los altos niveles de gasto gubernamental pueden compensarse con una mayor presión de las políticas fiscales tendientes a reducir el déficit presupuestal (Du y Xiu, 2009).…”