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Impact of short-term credit allocation on the rent-seeking tension between banks and enterprises

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  • Xiaojing, Lin
  • Qin, Wang
  • Xianhui, Fan

Abstract

This paper explores the influence of short-term credit allocation on the rent-seeking tension between banks and enterprises within the context of China’s financial supply-side reform. Drawing on panel data from non-financial listed firms between 2007 and 2022, the study reveals that a higher proportion of short-term credit significantly intensifies the rent-seeking tension in bank-enterprise interactions. Further analysis shows that this effect is conditioned by firm-level characteristics: reliance on bank financing strengthens the marginal effect, while higher levels of information transparency mitigate it. In addition, firms with greater asset specificity or facing severe financing constraints are more vulnerable to intensified rent-seeking tension in the short-term credit market. By highlighting the interaction between credit term structures and institutional rent behaviors, this paper enriches the literature on bank-enterprise agency conflicts and offers policy implications for improving credit governance and optimizing financial resource allocation under supply-side structural reform.

Suggested Citation

  • Xiaojing, Lin & Qin, Wang & Xianhui, Fan, 2026. "Impact of short-term credit allocation on the rent-seeking tension between banks and enterprises," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 161-169.
    • Handle: RePEc:eee:ecanpo:v:90:y:2026:i:c:p:161-169
    DOI: 10.1016/j.eap.2026.01.001
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