Funding Liquidity, Political Geography, and Private Equity Performance: Evidence from China

被引：0
|
作者：
Hou, Xiaohui [1 ,3 ]
Lian, Jiale [1 ]
Li, Shuo [1 ]
Wang, Qing [2 ]
机构：
[1] Xi An Jiao Tong Univ, Sch Econ & Finance, Xian, Shaanxi, Peoples R China
[2] Peoples Bank China, Xian Branch, Xian, Shaanxi, Peoples R China
[3] Xi An Jiao Tong Univ, Econ & Finance, Xian, Shaanxi, Peoples R China
来源：
EMERGING MARKETS FINANCE AND TRADE | 2019年 / 55卷 / 07期
基金：
中国国家自然科学基金;
关键词：
China; funding liquidity; political geography; private equity firm performance; STOCK; RISK; LEVERAGE;
D O I：
10.1080/1540496X.2018.1545642
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We investigate the relationship between funding liquidity and PE firm performance. We further develop a locally political alignment indicator (PAI) and then investigate whether PAI has an impact on the relationship between funding liquidity and PE firm performance. A higher required reserve ratio implies lower funding liquidity in the context of China. We find that the required reserve ratio is negatively related to PE firm performance significantly. When the most important local leaders belong to the partisan of the supreme leader, the negative reaction of local firms' performance to a change in funding liquidity strengthens significantly.
引用
收藏
页码：1429 / 1454
页数：26
相关论文
共 50 条
  • [31] Performance of Private Equity Backed Initial Public Offerings: Empirical Evidence from India
    Gohil, Raviraj
    Vyas, Vijay
    JOURNAL OF PRIVATE EQUITY, 2015, 18 (04): : 56 - 64
  • [32] How persistent is private equity performance? Evidence from deal-level data
    Braun, Reiner
    Jenkinson, Tim
    Stoff, Ingo
    JOURNAL OF FINANCIAL ECONOMICS, 2017, 123 (02) : 273 - 291
  • [33] Herd behavior and equity market liquidity: Evidence from major markets
    Galariotis, Emilios C.
    Krokida, Styliani-Iris
    Spyrou, Spyros I.
    INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS, 2016, 48 : 140 - 149
  • [34] How does corporate ESG performance affect stock liquidity? Evidence from China
    Wang, Kai
    Li, Tingting
    San, Ziyao
    Gao, Hao
    PACIFIC-BASIN FINANCE JOURNAL, 2023, 80
  • [35] Political Selection Institutions and Policy Performance: Evidence from China
    Zuo, Cai
    CHINESE POLITICAL SCIENCE REVIEW, 2024, 9 (02) : 129 - 151
  • [36] Corporate reputation, shareholders' gains, and market discounts: evidence from the private equity placement in China
    Adhikary, Bishnu Kumar
    Kutsuna, Kenji
    Xu, Jiakang
    JOURNAL OF CHINESE GOVERNANCE, 2020, 5 (03) : 273 - 296
  • [37] Post-Initial-Public-Offering Takeovers of Firms Controlled by Private Equity: Is There Evidence of a Liquidity Conflict?
    Slovin, Myron B.
    Sushka, Marie E.
    Dong, Qi
    JOURNAL OF LAW & ECONOMICS, 2021, 64 (02): : 367 - 402
  • [38] Political connection and M&A performance: Evidence from China
    Brahma, Sanjukta
    Zhang, Jing
    Boateng, Agyenim
    Nwafor, Chioma
    INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2023, 85 : 372 - 389
  • [39] An Empirical Study on the Market Effects of Private Equity Investment: Evidence from the Listed Company in China
    Duan Xinsheng
    Lan Yuying
    2012 INTERNATIONAL CONFERENCE ON FUTURE INFORMATION TECHNOLOGY AND MANAGEMENT SCIENCE & ENGINEERING (FITMSE 2012), 2012, 14 : 22 - 28
  • [40] Political Selection Institutions and Policy Performance: Evidence from China
    Cai Zuo
    Chinese Political Science Review, 2024, 9 : 129 - 151
12345