IDEAS home Printed from https://ideas.repec.org/a/taf/rcjaxx/v12y2024i3p525-549.html
   My bibliography  Save this article

Passageway business regulation and bank loan financing——A quasi-natural experiment based on new asset management rules

Author

Listed:
  • Siyi He
  • Qinglu Jin

Abstract

Using the exogenous shock of New Asset Management Rules (NAMRs), this paper examines the impact of strengthening passageway business regulation on bank loan financing. We find that since the introduction of the NAMRs, firms that used to adopt passageway financing are obtaining more bank loans. When firms change their business to directions supported by industrial policies, they are more likely to obtain loans from state-owned commercial banks. In addition, firms can improve their performance to obtain loans from other commercial banks. Further tests show that after firms turn to loan financing, the cost of loans can decrease but other financing behaviours do not change significantly. The test of economic consequences also shows that after considering adjustment costs, turning to bank loan financing does not lead to worse net income. This paper provides new insights for understanding the micro effects of shadow banking regulation and improving China’s financial regulatory policies.

Suggested Citation

  • Siyi He & Qinglu Jin, 2024. "Passageway business regulation and bank loan financing——A quasi-natural experiment based on new asset management rules," China Journal of Accounting Studies, Taylor & Francis Journals, vol. 12(3), pages 525-549, July.
    • Handle: RePEc:taf:rcjaxx:v:12:y:2024:i:3:p:525-549
    DOI: 10.1080/21697213.2025.2473997
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/21697213.2025.2473997
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/21697213.2025.2473997?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:taf:rcjaxx:v:12:y:2024:i:3:p:525-549. 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/rcja .

    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.