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Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies
Credit distribution is uneven in the domestic financial market since it is relatively easy for listed companies, mainly state-owned enterprises, to obtain banks’ funds. Unbalanced credit distribution has caused some listed companies to participate in “Borrow to Lend” activities. Based on the traditi...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
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Frontiers Media S.A.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9008328/ https://www.ncbi.nlm.nih.gov/pubmed/35432098 http://dx.doi.org/10.3389/fpsyg.2022.856056 |
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author | Zhao, Shangmei Wang, Huibo Li, Wei |
author_facet | Zhao, Shangmei Wang, Huibo Li, Wei |
author_sort | Zhao, Shangmei |
collection | PubMed |
description | Credit distribution is uneven in the domestic financial market since it is relatively easy for listed companies, mainly state-owned enterprises, to obtain banks’ funds. Unbalanced credit distribution has caused some listed companies to participate in “Borrow to Lend” activities. Based on the traditional “financing priority” theory and credit rationing theory, this paper studies the “Borrow to Lend” shadow banking activities of China’s non-financial listed companies based on the 2007–2018 financial statement data of Chinese-listed companies and discusses the micro-level and macro-level related factors behind this activity. The empirical results show that China’s non-financial listed companies, especially the state-owned enterprises, are participating in obvious “Borrow to Lend” activities. The real economy’s rate of return shows a negative relationship with “Borrow to Lend” activities at the level of individual companies and their industries. This article uses the exogenous growth part of M2 growth to measure monetary policy tightness in terms of macro and credit policies. It uses the ratio of state-owned enterprise loans to total corporate loans as an approximate indicator of the credit distribution structure. The empirical results indicate that state-owned enterprises’ “Borrow to Lend” activities have shifted in the same direction as the tightening of monetary policy after the financial crisis. The proportion of state-owned enterprise loans positively correlates with state-owned enterprises’ “Borrow to Lend” activities. |
format | Online Article Text |
id | pubmed-9008328 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Frontiers Media S.A. |
record_format | MEDLINE/PubMed |
spelling | pubmed-90083282022-04-15 Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies Zhao, Shangmei Wang, Huibo Li, Wei Front Psychol Psychology Credit distribution is uneven in the domestic financial market since it is relatively easy for listed companies, mainly state-owned enterprises, to obtain banks’ funds. Unbalanced credit distribution has caused some listed companies to participate in “Borrow to Lend” activities. Based on the traditional “financing priority” theory and credit rationing theory, this paper studies the “Borrow to Lend” shadow banking activities of China’s non-financial listed companies based on the 2007–2018 financial statement data of Chinese-listed companies and discusses the micro-level and macro-level related factors behind this activity. The empirical results show that China’s non-financial listed companies, especially the state-owned enterprises, are participating in obvious “Borrow to Lend” activities. The real economy’s rate of return shows a negative relationship with “Borrow to Lend” activities at the level of individual companies and their industries. This article uses the exogenous growth part of M2 growth to measure monetary policy tightness in terms of macro and credit policies. It uses the ratio of state-owned enterprise loans to total corporate loans as an approximate indicator of the credit distribution structure. The empirical results indicate that state-owned enterprises’ “Borrow to Lend” activities have shifted in the same direction as the tightening of monetary policy after the financial crisis. The proportion of state-owned enterprise loans positively correlates with state-owned enterprises’ “Borrow to Lend” activities. Frontiers Media S.A. 2022-03-31 /pmc/articles/PMC9008328/ /pubmed/35432098 http://dx.doi.org/10.3389/fpsyg.2022.856056 Text en Copyright © 2022 Zhao, Wang and Li. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms. |
spellingShingle | Psychology Zhao, Shangmei Wang, Huibo Li, Wei Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies |
title | Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies |
title_full | Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies |
title_fullStr | Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies |
title_full_unstemmed | Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies |
title_short | Allocation of Credit Resources and “Borrow to Lend” Activities: Evidence From Chinese-Listed Companies |
title_sort | allocation of credit resources and “borrow to lend” activities: evidence from chinese-listed companies |
topic | Psychology |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9008328/ https://www.ncbi.nlm.nih.gov/pubmed/35432098 http://dx.doi.org/10.3389/fpsyg.2022.856056 |
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