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Imperial colonialism and shadow banking: Evidence from northeastern China, 1898–1911

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  • Fu, Tong
  • Li, Yuanyuan

Abstract

Using the history of northeastern China (1898–1911), this paper shows that imperial colonialism leads to specific lending patterns by contemporary firms and their debt-asset ratio. We further show that the debt-asset ratio mediates the effect of imperial colonialism on firm lending. Ultimately, we document that imperial colonialism drove contemporary firms to turn to shadow banking. In particular, our estimates tend to be robust to potential endogeneity bias.

Suggested Citation

  • Fu, Tong & Li, Yuanyuan, 2021. "Imperial colonialism and shadow banking: Evidence from northeastern China, 1898–1911," Finance Research Letters, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:finlet:v:41:y:2021:i:c:s1544612321000829
    DOI: 10.1016/j.frl.2021.102001
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    Cited by:

    1. Hodula, Martin, 2022. "Bringing the flashlight: Shadow banking in European Union countries," Finance Research Letters, Elsevier, vol. 47(PB).
    2. Fu, Tong & Yang, Siying & Jian, Ze, 2022. "Government support for environmental regulation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    China; Imperial colonialism; Shadow banking;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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