Institutional cross-ownership and trade credit: Evidence from China

IF 4.6 3区管理学 Q1 BUSINESS Corporate Governance-An International Review Pub Date : 2022-12-23 DOI:10.1111/corg.12505

Huan Liu, Canran Hou

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引用次数: 1

Abstract

Research Question/Issue

Relying on enhanced market power and improved information environment associated with institutional cross-ownership, this paper examines the relation between institutional cross-ownership and trade credit in China.

Research Findings/Insights

Listed firms with cross-ownership can obtain more trade credit. The main conclusion is robust when we consider endogeneity problems, alternative measures of institutional cross-ownership, and the effect of a financial crisis. Further, we perform several tests to examine the influencing mechanisms, confirming that the positive relation between institutional cross-ownership and trade credit is more pronounced for listed firms in more competitive industries, or with poorer information environment. Further analysis also finds that the positive effect of institutional cross-ownership on trade credit is more prominent for listed firms with fewer bank loans.

Theoretical/Academic Implications

This paper emphasizes information sharing and cooperation among listed firms with institutional cross-ownership and argues that the information improvement effect is a relatively more important mechanism in affecting listed firms' decisions.

Practitioner/Policy Implications

China's market-oriented reform is in progress and shows some weaknesses in corporate governance and investor protection. The research focusing on institutional cross-ownership can provide useful suggestions for policy makers on how to improve corporate governance and construct efficient capital markets.

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机构交叉所有制与贸易信贷：来自中国的证据

研究问题/议题本文基于与机构交叉所有制相关的市场力量增强和信息环境改善，考察了中国机构交叉所有制与贸易信用的关系。研究结果/见解交叉持股的上市公司可以获得更多的贸易信用。当我们考虑内生性问题、机构交叉所有权的替代措施以及金融危机的影响时，主要结论是强有力的。进一步，我们对影响机制进行了检验，证实了机构交叉持股与贸易信用之间的正相关关系在竞争更激烈的行业或信息环境较差的上市公司中更为明显。进一步分析还发现，对于银行贷款较少的上市公司，机构交叉持股对贸易信贷的积极影响更为突出。本文强调制度交叉持股的上市公司之间的信息共享与合作，认为信息改善效应是影响上市公司决策的一个相对重要的机制。中国的市场化改革正在进行中，在公司治理和投资者保护方面显示出一些弱点。对机构交叉持股问题的研究可以为政策制定者提供完善公司治理和构建高效资本市场的有益建议。

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来源期刊

Corporate Governance-An International Review Multiple-

CiteScore

7.00

自引率

11.30%

发文量

期刊介绍： The mission of Corporate Governance: An International Review is to publish cutting-edge international business research on the phenomena of comparative corporate governance throughout the global economy. Our ultimate goal is a rigorous and relevant global theory of corporate governance. We define corporate governance broadly as the exercise of power over corporate entities so as to increase the value provided to the organization"s various stakeholders, as well as making those stakeholders accountable for acting responsibly with regard to the protection, generation, and distribution of wealth invested in the firm. Because of this broad conceptualization, a wide variety of academic disciplines can contribute to our understanding.

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