The impact of corruption on firms’ access to bank loans: evidence from China

Liu, Peisen; Li, Houjian; Hua, Guo

doi:10.1080/1331677x.2020.1768427

Cited by 23 publications

(16 citation statements)

References 74 publications

(82 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The most inefficient banks assume greater credit risk and consequently their profits reduce, as is the case of banks in SSA countries, while for LAC countries bank inefficiency also drives greater assumption of credit risks and this has influenced the increase in the profits of these banks. These results are in line with those presented by Liu et al (2020) and Yang and Zhang (2020).…”

Section: The Effect Of Financial Inclusion On the Credit Risk And Pro...supporting

confidence: 93%

“…We use bank overhead costs to represent bank efficiency, as excess costs represent the mismanagement and inefficiency of the organization when costs are higher than revenues (Jenkins et al 2021;Liu et al 2020). The use of this variable is based on the expectation that banks that mismanage their resources are likely to take on more risk.…”

Section: Data Descriptionmentioning

confidence: 99%

See 1 more Smart Citation

The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries?

Jungo

Madaleno

Botelho

2022

JRFM

View full text Add to dashboard Cite

This study aims to assess the effect of financial inclusion and competitiveness on banks’ financial stability, considering the moderating role of financial regulation. To do so, we compare the effects of these variables in Sub-Saharan African (SSA) and Latin American and Caribbean (LAC) countries. Our results suggest that inclusion enhances bank stability in SSA and LAC countries, and financial regulation contributes to increasing financial stability in LAC countries, while we find no statistical significance in the effect of financial regulation on financial stability in SSA countries. Moreover, competitiveness negatively impacts financial stability, and financial regulation moderates the negative effect of competitiveness on financial stability in SSA and LAC countries. We also find that financial inclusion reduces credit risk in SSA countries, and for LAC countries financial inclusion increases credit risk and reduces bank profitability. Regarding the practical implications, this study shows that fostering financial inclusion in the countries under study contributes significantly to improving the welfare of households and especially to the stability of the financial system. The present study allows expanding of the scarce literature by examining the effect of financial inclusion and market structure on financial stability in two different samples, consisting of 41 countries in the SSA region and 31 countries in the LAC region, throughout 2005–2018.

show abstract

Section: The Effect Of Financial Inclusion On the Credit Risk And Pro...supporting

confidence: 93%

Section: Data Descriptionmentioning

confidence: 99%

The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries?

Jungo

Madaleno

Botelho

2022

JRFM

View full text Add to dashboard Cite

show abstract

“…First, it depends on the overall economic situation in the world, country and industry, expected trends, and enterprise creditworthiness. The influence of corruption is also emphasized (Qi & Ongena, 2019;Liu et al, 2020). It is important to stress that managing these factors might lead to a significant increase in funding for corporate environmental programs in the medium and even short term.…”

Section: Discussionmentioning

confidence: 99%

Factors of national environmental performance in sustainability management aspect

Rohov

Prykhodko

Kolodiziev

et al. 2021

Problems and Perspectives in Management

View full text Add to dashboard Cite

The ambitious goals of environmental sustainability stated in international agreements and national programs require developing strategies to achieve them. At the same time, there is a lack of empirical evidence on the environmental performance factors, which can be purposefully changed to achieve an effective result in the short and medium-term. The paper aims to find the institutional factors of national environmental performance, including financial ones, which might be effectively used as environmental sustainability management tools. For this, the relationships between the Environmental Performance Index (EPI), as the dependent variable, and the indicators of control of corruption, the effectiveness of an anti-monopoly policy, financial opportunities, undue influence, corporate culture, innovation output, GDP, and income growth among the poorest population, using a sample of 81 countries, and the technique for constructing nonlinear regression models based on the normalizing transformations for non-Gaussian data were studied.The study findings show that environmental performance can be predicted with sufficient accuracy by a linear model of its dependence on corruption control, minority shareholders protection, judicial independence, favoritism in decisions of government officials, tax incentives, ease of access to loans, and innovation output. Adding GDP per capita to the explanatory variables of the EPI model does not significantly affect the result accuracy but changes the model shape from linear to nonlinear. The paper substantiates ways to apply results for institutional reforms and sustainability management, such as inflation targeting, public credit guarantee schemes, performance-based loans, etc.

show abstract

“…Rent seeking is an unavoidable problem. Scholars who have examined the ineffectiveness of government subsidies generally believe that, in an environment of low-cost corruption, enterprises can obtain profits and development through the enterprises' political connections, rather than through innovation (Liu et al, 2020). The Chinese government is aware of the dangers posed by corruption.…”

Section: Hypothesesmentioning

confidence: 99%

The influence of government subsidy on enterprise innovation: based on Chinese high-tech enterprises

Tong

Zhen

2021

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

This paper uses data from all the listed high-tech enterprises in China, from 2013 to 2018, as the samples employed to study the impact of government subsidies on the innovation of high-tech enterprises, as well as the subsidy mechanism. The mechanism is analysed mainly from the perspectives of resource effect and signal transmission effect. In the theoretical analysis, from the perspective of resource effect, the capital guiding role of government subsidies is considered. In addition, this study creatively discusses the impact of rent-seeking behaviour in combination with China's anti-corruption practice. From the perspective of signal transmission, government subsidies are no longer only interpreted as positive signals of the government being in favour of enterprise financing. This study further believes that government subsidies transmit a signal to the public, encouraging them to strengthen their supervision of subsidised enterprises. A multiple regression model and mediating effect model indicate that government subsidies achieve the purpose of stimulating enterprise innovation. The stimulating effect of government subsidies through financing constraints and signal transmission is 9.48% and 10.16%, respectively. These results are consistent with the positive externality theory and the signal transmission theory. At the end of the paper, several relevant suggestions are presented, according to the current developments.

show abstract

The impact of corruption on firms’ access to bank loans: evidence from China

Cited by 23 publications

References 74 publications

The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries?

The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries?

Factors of national environmental performance in sustainability management aspect

The influence of government subsidy on enterprise innovation: based on Chinese high-tech enterprises

Contact Info

Product

Resources

About