The Benefits of Political Connection: Evidence from Individual Bank-Loan Contracts

Chen, Yan Shing; Shen, Chung Hua; Lin, Chih‐Yung

doi:10.1007/s10693-013-0167-1

Cited by 95 publications

(73 citation statements)

References 23 publications

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“…The selection of governance variables follows prior studies on CG in Asia and Taiwan (Chen, 2014;Claessens, Djankov, & Lang, 2000;Fan & Wong, 2002;Huang & Wang, 2015;Yeh, Shu, & Guo, 2008;Yeh & Woidtke, 2005) to ensure the sufficient reflection of CG practices in Taiwan. Moreover, the construction of PC is similar to that in Fisman (2001), Chen, Shen, and Lin (2014), and Su, Fung, Huang, and Shen (2014).…”

Section: Measures Of Cg Versus Pcmentioning

confidence: 99%

Do strong corporate governance firms still require political connection, and vice versa?

Shen

Lin

Wang

2015

International Review of Economics & Finance

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Section: Measures Of Cg Versus Pcmentioning

confidence: 99%

Do strong corporate governance firms still require political connection, and vice versa?

Shen

Lin

Wang

2015

International Review of Economics & Finance

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“…For example, our findings may not be able to generalize to countries with better creditor protection, such as the U.S. 2 These perspectives include the borrower reputation(Diamond 1991;Sufi 2007), borrower risk(Strahan 1999), information rents(Mattes et al 2013), political connections(Chen et al 2014), differences in legal or institution(Qian and Strahan 2007;Bae and Goyal 2009;Haselmann et al 2010), and role of borrower accounting quality(Bharath et al 2008).…”

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confidence: 92%

Founding Family Firms and Bank Loan Contracts

Yen¹,

Lin²,

Chen

et al. 2014

J Financ Serv Res

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Given the economic importance of bank loan financing worldwide, we empirically investigate the role of founding family ownership in bank loan contracts after controlling other governance practices via individual bank loan contracts in Taiwan. We first find that founding family firms can enjoy favorable loan contracts in terms of loan spread. Second, we find that these favors tend to decrease or even disappear when founding families are more likely to expropriate other investors or when the information asymmetry between the borrower and the bank is not severe. Third, we document that the favorable spread effect of founding family firms enlarge for firms with greater credit risk, or during periods of financial crisis.

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“…Secondly, many inefficient investments have been encouraged by financial policies (Dai & Cheng, ). In fact, a large amount of credit has been allocated to those projects that have been improperly selected (Chen, Shen, & Lin, ). The consequences of this capital misallocation will affect the improvement of TFP.…”

Section: Empirical Analysismentioning

confidence: 99%

What determines the productivity growth? Evidence from Chinese renewable energy firms by using Bayesian stochastic frontier approach

2019

Australian Economic Papers

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This paper examines the determinants of the total factor productivity (TFP) growth of Chinese renewable energy firms from 2011 to 2016, using a Bayesian stochastic frontier approach. Employing the "Bauer-Kumbhakar" decomposition method, the TFP growth is decomposed into the technology part and the market part. The empirical results reveal that the TFP improvement of Chinese renewable energy firms is mainly due to technical progress, followed by technical efficiency change. With regard to the market part, the misallocation of production factors has hindered the TFP growth. Our findings also indicate that only for large firms, the TFP growth can benefit from the scale economy effect. Compared with non-state-owned firms, state-owned firms suffer much lower allocative efficiency. K E Y W O R D Sallocative efficiency, productivity growth, TFP decomposition

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The Benefits of Political Connection: Evidence from Individual Bank-Loan Contracts

Cited by 95 publications

References 23 publications

Do strong corporate governance firms still require political connection, and vice versa?

Do strong corporate governance firms still require political connection, and vice versa?

Founding Family Firms and Bank Loan Contracts

What determines the productivity growth? Evidence from Chinese renewable energy firms by using Bayesian stochastic frontier approach

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