Credit Stimulus, Executive Ownership, and Firm Leverage
We show that executive ownership is a significant driver of the demand for credit following credit expansion policies. Our focus on credit demand is in contrast to most studies that have focused on credit supply factors such as bank capital. Our identification exploits the large and unexpected Chine...
| Autores: | , , , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2021 |
| País: | España |
| Institución: | IE |
| Repositorio: | Repositorio IE |
| OAI Identifier: | oai:repositorio.ie.edu:20.500.14417/3299 |
| Acceso en línea: | https://doi.org/10.1287/mnsc.2021.4188 https://hdl.handle.net/20.500.14417/3299 |
| Access Level: | acceso abierto |
| Palabra clave: | China Credit Policies Executive Ownership Leverage 53 Ciencias Económicas::5311 Organización y dirección de empresas ODS 8 - Trabajo decente y crecimiento económico |
| Sumario: | We show that executive ownership is a significant driver of the demand for credit following credit expansion policies. Our focus on credit demand is in contrast to most studies that have focused on credit supply factors such as bank capital. Our identification exploits the large and unexpected Chinese credit expansion in 2008. This setting offers a unique advantage as in 2008 the Chinese government had almost complete control over the banking sector and it directed the banks to increase credit supply. Thus, in this setting, demand, rather than supply, largely drives the observed changes in firms’ borrowing. We provide extensive robustness tests to validate our results. |
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