主 题:The Effect of Internal Capital Allocation on Firm Value: Evidence from Entrusted Loans of Business Groups
内容简介:This paper investigates how business groups’ internal capital allocation affect firm value. Using a hand-collected dataset on entrusted loans of Chinese listed companies from 2004 to 2016, our empirical results are as follows. First, on the whole, firms engaging in entrusted loans of internal capital allocation tend to decrease firm value. Second, there is a difference in benefit flow, that is, firms providing entrusted loan harm enterprise value, while firms receiving entrusted loans enhance enterprise value. Third, there is a different effect of shareholders' association degree on company value, i.e. firms allocate entrusted loans decline company value, but the controlling shareholders' association between the lender and the borrower mitigates the negative effect. Fourth, firms making entrusted loans with the fair market rate of interest damage the firm value, but unfair price, mostly lower than the official bank loan rate, could reduce the negative effect. Finally, compared to private enterprises, stated-owned enterprises offer entrusted loan enhance the negative effect on the enterprise value.
报告人:王晓燕 博士在读
时 间:2018-11-28 16:30
地 点:位育楼117
举办单位:银行与货币研究院
