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Fiscal decentralization and shadow banking activities of non-financial enterprises

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Listed:
  • Han, Xun
  • Aibai, Abuduwali
  • Xie, Xinyan

Abstract

This paper explores the impact of fiscal decentralization on shadow banking of non-financial enterprises based on 2007 to 2020 data from Chinese A-share non-financial listed companies. The results show that:(1) Fiscal decentralization will improve scale of non-financial enterprises’ shadow banking. (2) Fiscal decentralization influence shadow banking activities of non-financial enterprises by government intervention and subsidy reversal mechanism. (3) Local government debt and tax effort have positive moderating effect on the relationship between fiscal decentralization and shadow banking activities of non-financial enterprises.

Suggested Citation

  • Han, Xun & Aibai, Abuduwali & Xie, Xinyan, 2023. "Fiscal decentralization and shadow banking activities of non-financial enterprises," Finance Research Letters, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323000880
    DOI: 10.1016/j.frl.2023.103714
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    References listed on IDEAS

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    Cited by:

    1. Yan, Youliang & Wang, Maochuan & Hu, Guoliu & Jiang, Chengxin, 2024. "Does Confucian culture affect shadow banking activities? Evidence from Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 68(C).

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    More about this item

    Keywords

    Fiscal decentralization; Shadow banking; Resource mismatch;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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