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Peer effect of nonfinancial corporate shadow banking: Evidence from common analyst networks in China

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  • Liu, Tingting
  • Du, Yong
  • Tan, Shuying
  • Zhao, Shuhan

Abstract

This paper investigates the peer effect of shadow banking among A-share nonfinancial firms in China's Shanghai and Shenzhen markets from 2007 to 2020, focusing on common analyst networks. The results reveal a significant peer effect, whereby firms imitate the shadow banking behavior of peers connected via shared analysts. This effect reduces firm performance and heightens stock price crash risk. The underlying mechanism is driven by information transmission and competitive pressure induced by common analysts. The study also proposes countermeasures for firms, analysts, and regulators, offering a novel perspective on addressing the “hollowing out” of the real economy.

Suggested Citation

  • Liu, Tingting & Du, Yong & Tan, Shuying & Zhao, Shuhan, 2025. "Peer effect of nonfinancial corporate shadow banking: Evidence from common analyst networks in China," Global Finance Journal, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:glofin:v:68:y:2025:i:c:s1044028325001280
    DOI: 10.1016/j.gfj.2025.101201
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    References listed on IDEAS

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