主  题:The Effect of Internal Capital Allocation on Firm Value: Evidence from Entrusted Loans of Business Groups

内容简介:This  paper investigates how business groups’ internal capital allocation  affect firm value. Using a hand-collected dataset on entrusted loans of  Chinese listed companies from 2004 to 2016, our empirical results are as  follows. First, on the whole, firms engaging in entrusted loans of  internal capital allocation tend to decrease firm value. Second, there  is a difference in benefit flow, that is, firms providing entrusted loan  harm enterprise value, while firms receiving entrusted loans enhance  enterprise value. Third, there is a different effect of shareholders'  association degree on company value, i.e. firms allocate entrusted loans  decline company value, but the controlling shareholders' association  between the lender and the borrower mitigates the negative effect.  Fourth, firms making entrusted loans with the fair market rate of  interest damage the firm value, but unfair price, mostly lower than the  official bank loan rate, could reduce the negative effect. Finally,  compared to private enterprises, stated-owned enterprises offer  entrusted loan enhance the negative effect on the enterprise value.

报告人:王晓燕      博士在读

时  间:2018-11-28    16:30

地  点:位育楼117