“In-Laws Effect” of the Enterprise and the Bank Equity Marriage

DOI

10.2991/iceemt-18.2018.73How to use a DOI?

Keywords

Credit Policy; Enterprise-Bank Relationship; Shareholding Alliance; Bank Credit

Abstract

A good relationship between the enterprise and bank is important for the firms to obtain loan in the banking dominated financial market. How to resolve the financing difficulties for the enterprise financing channels blocked became a much more important proposition. This paper examines the effect of the holding bank on bank loan from the perspective of political alliances. Using correlation data of shareholding Banks and credit funds, this paper found that as the credit policy uncertainty increased, more and more companies use shareholding Banks to get good relationship with the fact. Further study found that financial institutions holding 5% stake in these companies get more long-term loans. In the presence of more uncertainty of the external financial policy background, relying on financial institutions based on the ownership of marriage "equity", this paper provide an new perspective for an enterprise to obtain the cash needed. This paper has contributed to understand the firm financing mechanism from informal institution perspective.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wenhao Tan
AU  - Zhenpeng Ma
PY  - 2018/12
DA  - 2018/12
TI  - “In-Laws Effect” of the Enterprise and the Bank Equity Marriage
BT  - Proceedings of the 2018 3rd International Conference on Education, E-learning and Management Technology (EEMT 2018)
PB  - Atlantis Press
SP  - 375
EP  - 380
SN  - 2352-5398
UR  - https://doi.org/10.2991/iceemt-18.2018.73
DO  - 10.2991/iceemt-18.2018.73
ID  - Tan2018/12
ER  -