Passageway business regulation and bank loan financing——A quasi-natural experiment based on new asset management rules

Siyi He and Qinglu Jin

China Journal of Accounting Studies, 2024, vol. 12, issue 3, 525-549

Abstract: Using the exogenous shock of New Asset Management Rules (NAMRs), this paper examines the impact of strengthening passageway business regulation on bank loan financing. We find that since the introduction of the NAMRs, firms that used to adopt passageway financing are obtaining more bank loans. When firms change their business to directions supported by industrial policies, they are more likely to obtain loans from state-owned commercial banks. In addition, firms can improve their performance to obtain loans from other commercial banks. Further tests show that after firms turn to loan financing, the cost of loans can decrease but other financing behaviours do not change significantly. The test of economic consequences also shows that after considering adjustment costs, turning to bank loan financing does not lead to worse net income. This paper provides new insights for understanding the micro effects of shadow banking regulation and improving China’s financial regulatory policies.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/21697213.2025.2473997 (text/html)
Access to full text is restricted to subscribers.

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:taf:rcjaxx:v:12:y:2024:i:3:p:525-549

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcja20

DOI: 10.1080/21697213.2025.2473997

Access Statistics for this article

China Journal of Accounting Studies is currently edited by Xiaochen Dou

More articles in China Journal of Accounting Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().