Distance and Financial Connection: Dynamics in Private Firms’ Bank Loan Availability.
Shao-Chieh Hsueh and Shuoxun Zhang*.
Emerging Markets Finance and Trade, 2024
This study investigates the impact of borrower-lender distance on credit availability for private firms. Utilizing an extensive loan record history, we categorize loans into initial and subsequent borrowings. Our analysis reveals a consistent trend: loan size diminishes with increasing distance, even after accounting for Fintech effects. A noteworthy finding is the divergent role of financial connections. During initial borrowings, they mitigate the adverse effects of distance, while in subsequent borrowings, they become a positive signal to lenders, particularly post-soft information insights. These insights highlight intricate dynamics in credit availability, emphasizing the evolving roles of technology and financial connections in shaping lending relationships for private firms.
DOES FORMAL FINANCIAL DEVELOPMENT CROWD IN INFORMAL FINANCING? EVIDENCE FROM CHINESE PRIVATE ENTERPRISES
Liming Hou, Shao-Chieh Hsueh, Shuoxun Zhang
Economic Modelling, August 2020
The relationship between formal and informal finance is uncertain. They serve as substitute for high-quality borrowers but are complement for low-quality borrowers. As formal financial institutions expand, they may concentrate on high-quality borrowers or diversify among borrowers of different qualities. Using unique survey data from Chinese private firms, we are allowed to investigate the relationship for a group of borrowers who were considered as low-quality. We find that formal financial development imposes a crowd-in effect for private firms’ informal financing, especially in East China. There is heterogeneity between East and West China. We document that the crowd-in effect is greater for private firms with bank access or of large size.
银行可得性与企业融资：机制与异质性分析
张烁珣，独旭
管理评论 2019.05
本文利用 2007－2013 年中国工业企业数据库与银行地址分布数据研究了银行可得性对企业融资的异质性影响以及作用机制。研究结果表明: ( 1) 银行可得性的提高能够增强企业的融资水平， 降低企业的融资成本。( 2) 银行可得性对不同规模不同所有制的企业均具有异质性影响。( 3) 银行可得性主要通过“竞争效应”与“距离效应”两个渠道影响企业融资。( 4) 虽然互联网的发展会削弱银行可得性对企业融资的影响， 但是现阶段银行可得性仍然会影响企业融资。本文的研究结果显示应继续推进“普惠金融”政策的实施， 支持商业银行合理有效扩张， 提高银行可得性， 缓解企业融资难、融资贵困境。
