Market-based versus bank-based financial structure in China: From the perspective of financial risk

Liu, Chao; Fan, Yixin; Xie, Qiwei; Wang, Chao

doi:10.1016/j.strueco.2022.03.013

Cited by 13 publications

(14 citation statements)

References 49 publications

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“…Therefore, at different stages of financial development, the impact of digital transformation on innovation may be nonlinear. In addition, the moderating effects of banks and capital markets differ and are mainly reflected in risk management and information processing (Liu et al 2022a). Most studies believe that the capital market is significantly higher than traditional financial institutions, such as banks, in terms of risk tolerance and diversification ability (Purewal and Haini 2022).…”

Section: The Threshold Effect Of Financial Developmentmentioning

confidence: 99%

The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets

Du,

Wang

2024

Financ Innov

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This study explores the role of financial support in the digital transformation of Chinese A-share-listed companies from 2001 to 2020. By utilizing the moderating effect model and threshold regression model, this study finds the following results: (1) Digital transformation positively impacts innovation, and the support of banking and capital markets further strengthens this impact. (2) With the development of banking and capital markets, the impact of digital transformation on innovation changes from negative to positive, which is also reflected in the subsamples of Eastern companies, small and medium-sized companies (SMEs), and non-SMEs. (3) The study reveals that only the capital market in the non-Eastern region has no threshold, and capital market support is effective only for non-SMEs when it reaches a higher level. These findings have important implications for policymakers in promoting digital transformation through financial support and help companies understand how to use financial support to improve competitiveness.

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Section: The Threshold Effect Of Financial Developmentmentioning

confidence: 99%

The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets

Du,

Wang

2024

Financ Innov

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“…From the perspective of risk contagion, financial risk is the potential for a single event or institution to cause a domino effect through a market network, resulting in the spread of losses (Liu et al, 2022).…”

Section: Financial Riskmentioning

confidence: 99%

Financial risk under the shock of global warming: Evidence from China

Gao,

Li,

Hao

2023

Bus Strat Env

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The economic and financial risks of global warming have become a hot issue of academic interest. This article analyzes global warming, financial risk, and the economic statistics of 30 provinces in China from 2010 to 2020 as a sample to assess the influence of the severity of global warming on financial risk. Global warming is found to affect financial risk and to have a substantial favorable influence on the amount of financial risk. Global warming also has significant effects on households, enterprises, financial institutions, and governments. There is heterogeneity in the effects of climate variation on financial risk. Global warming will cause a greater accumulation of financial risk in economically developed regions. Additionally, it will lead to financial risks by causing a decline in the incomes of residents, a decline in the profits of enterprises, growth in the number of loans that financial institutions consider to be nonperforming, and a widening of the gap between government revenue and expenditures. All of these effects will have an adverse domino effect on the economy. To reduce the financial risks caused by global warming, countermeasures are being offered to ensure social cohesion, conduct risk stress testing, create risk mitigation instruments, and encourage environmentally responsible development. This paper discusses policies and provides policymakers with recommendations on how to cope with the systematic financial risks induced by climate variation.

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“…Therefore, the debt ratio indicator is commonly used in financial structure scales. M&M theory (Modigliani & Miller, 1958), static trade-off theory (Wu & Wang, 2005), pecking order theory (Reid, 2003), and empirical studies by Liu, Fan, Xie, and Wang (2022); Yang and Bian (2019) and Syahida and Ameer (2010) have shown a positive relationship between debt use and financial risk. These studies show that when businesses use internal capital, they will bring high profits and fewer risks.…”

Section: Research Hypothesesmentioning

confidence: 99%

Determinants of financial risk of firms listed on the national stock market: Dynamic panel evidence from Vietnam

Nguyen,

Ha,

Nguyen

et al. 2023

5002

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Financial risk is a subject that receives the attention of researchers, business managers, and policymakers because of its impact on the existence and development of businesses. The study was conducted to provide empirical evidence on the factors affecting the financial risk of enterprises in the context of emerging and developing economies. The quantitative method based on the S-GMM model was used for regression analysis to overcome endogenous problems in the multivariate regression model with financial variables, with a sample of 509 listed non-financial enterprises, with 3,054 observations in the 2007–2018 period in Vietnam. The results show that profitability, current solvency, financial structure, cost management, and firm size influence financial risk for listed enterprises in the sample. Financial leverage and firm size were found to have a positive influence on financial risk, and the other factors negatively affect financial risk. The study also examines the influence of several factors related to business performance and growth in relation to risk. Based on these findings, some policy implications are proposed on corporate governance related to the use of financial leverage and cost management so that enterprises can develop sustainably and avoid financial risk.

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Market-based versus bank-based financial structure in China: From the perspective of financial risk

Cited by 13 publications

References 49 publications

The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets

The power of financial support in accelerating digital transformation and corporate innovation in China: evidence from banking and capital markets

Financial risk under the shock of global warming: Evidence from China

Determinants of financial risk of firms listed on the national stock market: Dynamic panel evidence from Vietnam

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