Bank Background CEO and Enterprise Short-Term Loan and Long-Term Investment

Xiaoman  Wu; Weilun  Hu

doi:10.36922/ssr.v3i5.1208

Xiaoman Wu School of Economics and Management, Foshan University, Foshan 528000, Guangdong Province, China
Weilun Hu School of Accounting, Jiangxi University of Finance and Economics, Nanchang 330013, Jiangxi Province, China

DOI: https://doi.org/10.36922/ssr.v3i5.1208

Keywords: Banking background, Short-term loan and long-term investment, Financing constraint

Abstract

This paper takes A-share listed companies from 2008 to 2018 as samples, and discusses the relationship between bank background CEO and enterprise short-term loan and long-term investment. It is found that the CEO with banking background can significantly inhibit the short-term loan and long-term investment of enterprises. Compared with the highly market-oriented regions and state-owned enterprises, the CEO with banking background has a more obvious inhibitory effect on short-term loan and long-term investment of enterprises. In this paper additionally, PSM, lag variable and Heckman two-stage model are used for robustness test, and the above conclusions are still valid.