In the shadow of banks: Entrusted wealth management and capital allocation efficiency

Shuangli Yu

Finance Research Letters, 2025, vol. 76, issue C

Abstract: We conduct micro-level analyses on an increasingly important type of shadow banking in China—Entrusted Wealth Management (EWM). Using listed firms to mandatory disclosure requirements for this type of activity, we examine the possible economic consequences for firms engaging in transactions involving Wealth Management Products (WMPs) from the perspective of the buyer. We find that EWM can enhance Capital Allocation Efficiency (CAE). And the mechanism analysis indicates that the improvement of capital utilization is the essential approach to the effect of EWM on the CAE. Moreover, the enhancement of CAE has a significantly positive effect on firm value.

Keywords: Shadow banking activities; Entrusted wealth management; Capital allocation efficiency (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S154461232500217X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s154461232500217x

DOI: 10.1016/j.frl.2025.106953

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().