IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v57y2021i14p4089-4104.html
   My bibliography  Save this article

Financial Market Friction and Corporate Restructuring Activities in China

Author

Listed:
  • Shuangyan Li
  • Chang Liu
  • Mingbo Zheng
  • Chun-Ping Chang
  • Qiang Fu

Abstract

This study empirically investigates the effect of external financial market friction on restructuring activities, based on panel data of listed Chinese firms from 2004 to 2018. The results show that there is a positive correlation between financial market friction and the number of restructuring deals. We also find that high financial market friction increases preference for cash payments and the likelihood of mergers and acquisitions. These findings add to the restructuring literature by capturing heterogenous restructuring forms. They also deepen the understanding of the firm boundary theory, by suggesting that firms have incentives to increase their scopes when facing external market distress.

Suggested Citation

  • Shuangyan Li & Chang Liu & Mingbo Zheng & Chun-Ping Chang & Qiang Fu, 2021. "Financial Market Friction and Corporate Restructuring Activities in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(14), pages 4089-4104, November.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:14:p:4089-4104
    DOI: 10.1080/1540496X.2020.1801409
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2020.1801409
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2020.1801409?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.

    More about this item

    Statistics

    Access and download statistics

    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:mes:emfitr:v:57:y:2021:i:14:p:4089-4104. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.