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Analysis of the impact of rent-seeking on corporate financial asset allocation

Author

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  • Zhang, Jianwei
  • Luan, Shenzhou

Abstract

Using 2007–2022 data from Chinese listed firms, this study theoretically analyses and empirically tests the impact of rent-seeking on corporate financial asset allocation. Findings show that rent-seeking contributes significantly to the allocation of corporate financial assets Especially in non-high-tech firms and those with low information transparency as well as high degree of market competition. Rent-seeking affects the allocation of corporate financial assets by reducing financing costs.

Suggested Citation

  • Zhang, Jianwei & Luan, Shenzhou, 2025. "Analysis of the impact of rent-seeking on corporate financial asset allocation," Finance Research Letters, Elsevier, vol. 80(C).
  • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325007056
    DOI: 10.1016/j.frl.2025.107445
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