Strong financial regulation and corporate risk-taking: Evidence from a natural experiment in China

被引：14

作者：

Liu, Qi ^{[1
]}

Wu, Jiejie ^{[2
]}

机构：

[1] Zhongnan Univ Econ & Law, Sch Accounting, Wuhan, Peoples R China

[2] Huazhong Univ Sci & Technol, Sch Econ, Wuhan, Peoples R China

来源：

FINANCE RESEARCH LETTERS | 2023年 / 54卷

关键词：

Strong financial regulation; Corporate risk -taking; GOVERNANCE; INNOVATION; OWNERS;

D O I：

10.1016/j.frl.2023.103747

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We use the difference-in-differences (DID) method to investigate the impact of strong financial regulation on corporate risk-taking via the issue of a capital control policy. Using a natural experiment, we find that strong financial regulation reduces both agency costs and risk-averse behavior among managers, which translates into an increased willingness to engage in highrisk investments. Our results provide evidence that strong financial regulation promotes corporate risk-taking. This positive effect persists after a series of robustness tests.

引用

页数：8

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