Imperial colonialism and shadow banking: Evidence from northeastern China, 1898–1911

Tong Fu and Yuanyuan Li

Finance Research Letters, 2021, vol. 41, issue C

Abstract: Using the history of northeastern China (1898–1911), this paper shows that imperial colonialism leads to specific lending patterns by contemporary firms and their debt-asset ratio. We further show that the debt-asset ratio mediates the effect of imperial colonialism on firm lending. Ultimately, we document that imperial colonialism drove contemporary firms to turn to shadow banking. In particular, our estimates tend to be robust to potential endogeneity bias.

Keywords: China; Imperial colonialism; Shadow banking (search for similar items in EconPapers)
JEL-codes: G30 N45 P34 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:41:y:2021:i:c:s1544612321000829

DOI: 10.1016/j.frl.2021.102001

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