Internal capital markets in business groups and the propagation of credit supply shocks /

Internal capital markets in business groups and the propagation of credit supply shocks /

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Bibliographic Details
Author / Creator:	Shi, Yu, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, [2019] ©2019
Description:	1 online resource (40 pages)
Language:	English
Series:	IMF Working Paper ; WP/19/111 IMF working paper ; WP/19/111.
Subject:	Capital market -- China. Credit -- China. Capital market. Credit. China.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12509872

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Other authors / contributors:	Townsend, Robert M., 1948- author. Zhu, Wu, author. International Monetary Fund, issuing body.
ISBN:	1498316417 9781498316415
Notes:	Online resource; title from PDF title page (IMF, viewed Sept. 1, 2020).
Summary:	Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders' credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries investment by 1% of their tangible fixed asset value, which accounts for 71% (7%) of the median (average) investment rate among these firms. We argue that equity exchanges is one channel through which corporate shareholders transmit bank credit supply shocks to the subsidiaries and provide empirical evidence to support the channel.
Other form:	Print version: Shi, Yu. Internal Capital Markets in Business Groups and the Propagation of Credit Supply Shocks. Washington, D.C. : International Monetary Fund, ©2019 9781498314411

Table of Contents:

Empirical strategy and data
Empirical analysis.