Does shadow banking regulation constrain the idiosyncratic risk of firms? evidence from a quasi-natural experiment in China

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-05-01 DOI:10.1016/j.ribaf.2025.102926

Zhenming Fang , Ruijiang Li , David Smith , Jing Liao

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Abstract

We explore whether tighter regulation of shadow banking improves finance market pricing efficiency by examining the regulation’s impact on idiosyncratic risk. Using the implementation of China’s New Asset Management Regulation, a strict regulatory policy targeting shadow banking activities, as an exogenous shock, we find that listed firms’ idiosyncratic risk significantly decreased after the policy’s issuance. Our findings remain consistent after applying a series of robustness tests and endogeneity checks. Mechanism analysis shows that the policy improved the listed firms’ information disclosure quality. Heterogeneity tests reveal that the policy’s effect is more pronounced in firms with poorer corporate governance, weaker external supervision, and firms with lower market value. This paper enriches empirical evidence on the microeconomic consequences of shadow banking activities and offers some policy implications for shadow banking regulation.

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影子银行监管是否限制了公司的特殊风险？证据来自中国的一项准自然实验

我们通过检验监管对特殊风险的影响来探讨加强影子银行监管是否能提高金融市场的定价效率。以中国针对影子银行活动的严格监管政策《资管新规》的实施为外生冲击，我们发现政策出台后上市公司的特质风险显著降低。应用一系列稳健性检验和内生性检验后，我们的研究结果保持一致。机制分析表明，该政策提高了上市公司信息披露质量。异质性检验表明，在公司治理较差、外部监督较弱和市值较低的公司中，政策的影响更为明显。本文丰富了影子银行微观经济后果的实证证据，并为影子银行监管提供了一些政策启示。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance