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Financing, reputation and information disclosure quality in the Chinese market

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  • Jianhua Mi
  • Hong Sheng
  • Cassandra Elrod

Abstract

In this article, we propose a theoretical model based on the reputation theory and hypothesize a positive relation between the information disclosure quality and the company's refinancing decision. We collected data from the listed companies, which refinances in Shenzhen main board and SME board during 2006-2012, as a panel sample, and tested the hypothesis empirically. The results indicate that there exists a significant positive correction short-term relation between refinancing decision and the information disclosure quality, but in the long term the relationship between the information disclosure quality and refinancing decision is not significant.

Suggested Citation

  • Jianhua Mi & Hong Sheng & Cassandra Elrod, 2016. "Financing, reputation and information disclosure quality in the Chinese market," Applied Economics, Taylor & Francis Journals, vol. 48(9), pages 789-798, February.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:789-798
    DOI: 10.1080/00036846.2015.1088140
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    1. Xu, Kun & Liu, Jie & Teng, Zhong-lu & Wang, Weicheng, 2024. "Risk culture of banks and corporate innovation: Evidence from Chinese listed companies," International Review of Economics & Finance, Elsevier, vol. 94(C).

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