Permissible collateral and access to finance: Evidence from a quasi-natural experiment

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dc.contributor Bank of Finland
dc.contributor.author Xu, Bing
dc.date.accessioned 2018-01-31T12:57:26Z
dc.date.available 2018-01-31T12:57:26Z
dc.date.issued 2018
dc.identifier.isbn 978-952-323-210-5
dc.identifier.issn 1456-5889
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/15148
dc.description.abstract By allowing large classes of movable assets to be used as collateral, the Property Law reform trans-formed the secured transactions in China. Difference-in-differences tests show firms operating with ex-ante more movable assets expand access to bank credit and prolong debt maturity. However, the reform does not seem to improve the efficiency of credit allocation, as debt capacity of ex-ante low quality firms expands the most following the reform. Credit expansion also does not lead to better firm performance. These findings are not driven by confounding factors such as improvements in creditor and property rights protection. Our results also cannot be explained by other important reforms which were introduced around the same time as the introduction of the Property Law. These include anti-tunneling and split-share reforms and amendments to the corporate tax structure in China. We conduct explicit robustness tests for these other reforms and amendments to the corporate tax structure in China. We conduct explicit robustness tests for these other reforms and hence contribute to the empirical literature on the reform process in China with new findings.
dc.format.extent 41
dc.language.iso ENG
dc.relation.ispartofseries BOFIT Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject Bofit-kokoelma
dc.subject SP
dc.subject RP ST
dc.subject Kiina
dc.subject uudistukset
dc.subject.other collateral
dc.subject.other movable assets
dc.subject.other leverage
dc.subject.other property law
dc.title Permissible collateral and access to finance: Evidence from a quasi-natural experiment
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-201801311153
dc.subject.jel G21
dc.subject.jel G28
dc.subject.jel G32
dc.subject.jel K22
dc.series.name BOFIT Discussion Papers
dc.series.year 2018
dc.series.number 3/2018
dc.series.sortingnumber 0003
dc.date.publication 31.1.2018
dc.subject.yso vakuudet
dc.subject.yso lainsäädäntö
dc.subject.yso luotot
dc.subject.yso tehokkuus
dc.subject.yso yritykset
dc.identifier.doi 10.1016/j.chieco.2018.11.006
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.description.publication Published in China Economic Review, 54, 2019, 237-255
dc.type.okm D4

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