IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v85y2024ics0927538x2400091x.html
   My bibliography  Save this article

The belt and road initiative and the over-leverage of securities companies

Author

Listed:
  • Duan, Yuejiao
  • Liu, Lanbiao
  • Zhang, Jingjia

Abstract

Using data from 203 securities companies in Chinese provinces that have announced participation in the Belt and Road Initiative (BRI) from 2008 to 2019, we study the impact of the BRI on these securities companies. We find that the BRI has induced a corporate and enterprise bond maturity extension effect, which in turn triggers the over-leverage problem of Chinese securities companies. The impact exhibits a lagged effect, with a stronger impact observed in years 2 and 3 compared to years 0 and 1. Moreover, we identify an asymmetric effect of the BRI on over-levered and under-levered securities companies. State-owned securities companies experience a greater impact compared to non-state-owned ones. Factors such as large asset size, high profitability, and low growth rate could mitigate the impact of the BRI on the securities companies' over-leverage level.

Suggested Citation

  • Duan, Yuejiao & Liu, Lanbiao & Zhang, Jingjia, 2024. "The belt and road initiative and the over-leverage of securities companies," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
  • Handle: RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x2400091x
    DOI: 10.1016/j.pacfin.2024.102340
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X2400091X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.pacfin.2024.102340?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x2400091x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.