Missing the boat: Regulatory approval delay and investment project outcomes

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2023-11-01 DOI:10.1016/j.bar.2023.101186

Qiaozhi Ye , Ronghong Huang , Kelvin Jui Keng Tan

引用次数: 0

Abstract

By using unique hand-collected project-level investment data on Chinese private investments in public equity (PIPE) issuances, we show that the length of the regulatory approval process for equity issuance is positively related to the probability of subsequent changes in equity-financed projects and a deterioration in project returns. The effects are more pronounced for firms in a highly competitive industry and with a comparative disadvantage. Furthermore, we show that this relationship is causal by exploiting the exogenous shock to approval delay caused by changes in the Chairman of the China Securities Regulation Commission. In response, equity issuers mitigate the delay impact by temporarily increasing debt financing.

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错失良机：监管审批延迟与投资项目结果

通过使用中国私募股权(PIPE)发行的独特手工收集的项目级投资数据，我们表明，股权发行的监管审批程序的长度与股权融资项目后续变化的概率和项目回报的恶化呈正相关。对于处于高度竞争行业和处于相对劣势的公司，这种影响更为明显。此外，我们利用中国证监会主席变动对审批延迟的外生冲击，证明了这种关系是因果关系。作为回应，股票发行人通过暂时增加债务融资来缓解延迟影响。

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

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.