 Accounting conservatism, bank lending and firm investment: Evidence from a quasi-experiment of China's stimulus packageXiaofei Pan Pacific-Basin Finance Journal, 2017, vol. 44, issue C, 64-79 Abstract: Using a sample of China's listed firms between 2003 and 2014, this study finds that firms receive more bank loans after the stimulus package which is less significant for firms with conservative accounting. In addition, firms with conservative accounting exhibit higher investment efficiency, which becomes weaker after the stimulus package which represents an exogenous shock to credit supply. Further analysis shows that the abovementioned findings are more significant for non-SOEs, firms from less government-favoured industries and regions, and firms with severe interest conflicts between debtholders and shareholders. These results are robust for alternative specification and alternative measurements. Overall, these findings suggest that the beneficial effects of accounting conservatism are subject to institutional environments and government policies. Keywords: Accounting conservatism; Bank lending; Firm investment; Stimulus package (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:44:y:2017:i:c:p:64-79 DOI: 10.1016/j.pacfin.2017.06.004 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.