“Financial frictions and foreign direct investment: Evidence from Japanese microdata”
Horst Raff, Michael Ryan and Frank Stähler
In: Journal of International Economics, Vol. 112, pp 109 – 122
Using Japanese microdata for the period 1980 to 2000 Raff et al. find evidence for two transmission channels from financial shocks to foreign direct investment: a collateral channel, whereby changes in the value of investors’ landholdings affect their borrowing ability; and a lending channel, whereby changes in bank health affect banks’ lending ability.
“Government Credit, a Double‐Edged Sword: Evidence from the China Development Bank”
In: The Journal of Finance, Vol. 73, No. 1, pp 275 – 316
Using proprietary data from the China Development Bank (CDB), this paper examines the effects of government credit on firm activities. Tracing the effects of government credit across different levels of the supply chain, Ru finds that CDB industrial loans to state‐owned enterprises (SOEs) crowd out private firms in the same industry, but crowd in private firms in downstream industries.
“The effects of ownership change on bank performance and risk exposure: Evidence from Indonesia”
Mohamed Shaban and Gregory A. James
In: Journal of Banking & Finance, Vol. 88, pp 483 – 497
Shaban and James investigate the effects of an ownership change on the performance and exposure to risk of 60 Indonesian commercial banks over the period 2005-2012. They can show, that state-owned banks tend to be less profitable and more exposed to risk than private and/or foreign banks.
“Monetary stimulation, bank relationship and innovation: Evidence from China”
Gaoping Zheng, Shuxun Wang and Yongxin Xu
In: Journal of Banking & Finance, Vol. 89, pp 237-248
Zheng et al. use China’s four trillion yuan stimulus package of 2008 as an exogenous shock, to investigate whether monetary stimulation can benefit the real economy.