Local Government Debt and Firm Leverage: Evidence from China

被引：87
|
作者：
Liang, Yousha [1 ]
Shi, Kang [2 ]
Wang, Lisheng [2 ]
Xu, Juanyi [3 ]
机构：
[1] Zhejiang Univ, Hangzhou, Zhejiang, Peoples R China
[2] Chinese Univ Hong Kong, Shatin, Hong Kong, Peoples R China
[3] Hong Kong Univ Sci & Technol, Hong Kong, Hong Kong, Peoples R China
来源：
ASIAN ECONOMIC POLICY REVIEW | 2017年 / 12卷 / 02期
关键词：
Chengtou bond; credit misallocation; crowding-out effect; firm leverage; Local government debt; local government financing vehicle; CAPITAL STRUCTURE; GROWTH;
D O I：
10.1111/aepr.12176
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
China's local government debt financing has been expanded aggressively to support infrastructure investment, especially since the enactment of four-trillion-yuan stimulus plan to stimulate the economy post global financial crisis. At the same time, the rapid increase of firm-level leverage ratio of state-owned enterprises (SOEs) and the decline of leverage ratio of non-SOEs jointly deteriorated China's credit misallocation problem. In this study, we empirically test the effect of local government debton firm leverage in China. We find that an expansion of local government debt significantly crowded out the leverage of non-SOEs, while crowded in that of SOEs. Moreover, the effect differed across industries and sectors.
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页码：210 / 232
页数：23
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