The Impact of Capital Account Liberalization Policy on Corporate Financing Behavior——An Empirial Analysis of Shanghai-Hong Kong Stock Connect Policy
XIAO Han1, LIU Fang2
1.School of Politics and Public Administration, Wuhan University, Wuhan 430079, China; 2.College of Business, Shanghai University of Finance and Economics, Shanghai 200433, China;
Abstract Taking the Shanghai-Hong Kong Stock Connect policy as an example, this paper adopts 2013-2016 quarterly data of 1089 listed companies in Shanghai A-share Stock market to empirically study the policy effects on the financing behavior of listed companies and small companies through double and triple difference methods. Results show that first, the Shanghai-Hong Kong Stock Connect policy has boosted the enthusiasm and significantly increased the scale of equity financing and debt financing of listed companies. Second, though the Shanghai-Hong Kong Stock Connect policy does not alleviate the financing constraints of small companies in the short term compared with large companies, it raises their enthusiasm for debt financing. Third, the parallel trend assumptions required by the double difference and triple difference methods are all satisfied. The harmonization of Shanghai-Hong Kong Stock Connect policy with the liberalization of interest rate marketization together with the break-through of rigid payment and other capital marketization reform policies will improve the long-term financing behavior of small and medium-sized enterprises and promote the cultivation and development of small and medium-sized high-tech enterprises.
XIAO Han,LIU Fang. The Impact of Capital Account Liberalization Policy on Corporate Financing Behavior——An Empirial Analysis of Shanghai-Hong Kong Stock Connect Policy. Economic Survey, 2019, 36(3): 058.
2019, Vol. 36 
