Funding Contagion through Common Owners

IF 1.9 Q2 BUSINESS, FINANCE

Review of Corporate Finance Studies Pub Date : 2023-08-12 DOI:10.1093/rcfs/cfad019

B. Larrain, Giorgo Sertsios, F. Urzúa I.

引用次数: 0

Abstract

Funding contagion is the impaired ability of a firm to raise external funds when negative shocks hit other firms under the same owner. We study this possibility with pairs of private firms in unrelated industries that share a large common shareholder. We find that a firm’s debt growth and financial leverage go down when the partner firm experiences negative shocks. Our results are consistent with creditors contracting the credit supply because of cash flow cross-pledging between related firms. Funding contagion increases when control rights are strong, and the credit market is less developed.

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通过普通股所有者融资传染

资金传染是指当同一所有者旗下的其他公司受到负面冲击时，一家公司筹集外部资金的能力受损。我们研究了这种可能性，在不相关的行业的私人公司对，共同拥有一个大的共同股东。我们发现，当合作伙伴遭受负面冲击时，公司的债务增长和财务杠杆下降。我们的结果与债权人由于相关公司之间的现金流交叉质押而收缩信贷供应的情况一致。当控制权强大、信贷市场欠发达时，融资传染就会加剧。

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

Review of Corporate Finance Studies BUSINESS, FINANCE-

CiteScore

17.80

自引率

1.80%

发文量

期刊介绍： The Review of Corporate Finance Studies (RCFS) is dedicated to publishing high-quality research in the expansive field of Corporate Finance. The journal seeks original contributions, reviewing papers based on their unique insights into Corporate Finance. This encompasses a wide spectrum, including a firm's interactions with stakeholders, capital markets, internal organization structure, compensation mechanisms, corporate governance, and capital management. RCFS also welcomes research in financial intermediation, financial institutions, microstructure, and the implications of asset pricing for Corporate Finance. The journal considers theoretical, empirical, and experimental papers for review.