How does local government debt affect bank loan pricing? Evidence from loan-level data

IF 4.6 Q2 MATERIALS SCIENCE, BIOMATERIALS ACS Applied Bio Materials Pub Date : 2024-09-01 DOI:10.1016/j.ecosys.2024.101238
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Abstract

Existing research focuses on the crowding out effect of local government debt on the quantity of corporate bank loans, but hardly explores the impact of local government debt on bank loan prices. This paper empirically finds that a rise in local government debt increases bank loan prices, based on the loan-level data of Chinese listed companies from 2011 to 2018. This result is robust to a battery of sensitivity tests. Besides, local government debt is found to affect the costs of unsecured loans and short-term loans more strongly. Hence, in response to the expansion of local government debt, enterprises may replace transaction loans with relationship loans to control financing costs. The mechanism tests show that local government debt increases loan prices by increasing both financial constraints and environmental uncertainty. The paper provides new insights into the impact of local government debt on corporate financing.

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地方政府债务如何影响银行贷款定价?来自贷款层面数据的证据
现有研究主要关注地方政府债务对企业银行贷款数量的挤出效应,但几乎没有探讨地方政府债务对银行贷款价格的影响。本文基于2011-2018年中国上市公司贷款层面的数据,实证发现地方政府债务增加会提高银行贷款价格。这一结果在一系列敏感性检验中都是稳健的。此外,地方政府债务对无担保贷款和短期贷款成本的影响更大。因此,为应对地方政府债务的扩张,企业可能会用关系贷款替代交易贷款以控制融资成本。机制检验表明,地方政府债务通过增加财务约束和环境不确定性来提高贷款价格。本文为地方政府债务对企业融资的影响提供了新的见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
ACS Applied Bio Materials
ACS Applied Bio Materials Chemistry-Chemistry (all)
CiteScore
9.40
自引率
2.10%
发文量
464
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