IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v55y2019i7p1429-1454.html
   My bibliography  Save this article

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

Author

Listed:
  • Xiaohui Hou
  • Jiale Lian
  • Shuo Li
  • Qing Wang

Abstract

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.

Suggested Citation

  • Xiaohui Hou & Jiale Lian & Shuo Li & Qing Wang, 2019. "Funding Liquidity, Political Geography, and Private Equity Performance: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(7), pages 1429-1454, May.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1429-1454
    DOI: 10.1080/1540496X.2018.1545642
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2018.1545642
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2018.1545642?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Larissa Batrancea, 2020. "An Econometric Approach on Performance and Financial Equilibrium during the COVID-19 Pandemic," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 801-808, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1429-1454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.