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Investment and financing for SMEs with bank-tax-guarantee

Author

Listed:
  • Chen, Biao
  • Yan, Haoyang
  • Zhu, Nanhui

Abstract

Considering an enterprise funding the expansion investment with the financial innovation instrument, bank-tax-guarantee (BTG), we find that BTG significantly increases the firm value and produces a lower guarantee cost, and guarantee is the main driving power in BTG.

Suggested Citation

  • Chen, Biao & Yan, Haoyang & Zhu, Nanhui, 2023. "Investment and financing for SMEs with bank-tax-guarantee," Economics Letters, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:ecolet:v:231:y:2023:i:c:s0165176523003257
    DOI: 10.1016/j.econlet.2023.111300
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment and financing; Small- and micro-sized enterprise; Bank-tax-guarantee;
    All these keywords.

    JEL classification:

    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

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