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11 August 2020 Bank Intervention and Commercial Credit: An Empirical Study of Debt Default Enterprises in Coastal Regions
Yi Yang, Jingjing Cheng
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Abstract

Yang, Y. and Cheng, J.J., 2020. Bank intervention and commercial credit: An empirical study of debt default enterprises in coastal regions. In: Qiu, Y.; Zhu, H., and Fang, X. (eds.), Current Advancements in Marine and Coastal Research for Technological and Sociological Applications. Journal of Coastal Research, Special Issue No. 107, pp. 425-430. Coconut Creek (Florida), ISSN 0749-0208.

Evaluation of the impact of debt default and the adjustment of corporate financing policies in coastal areas is significant to understand the stamina of Chinese enterprises' transformation and development. Based on the sample of A-share listed companies in coastal provinces in 2007 and 2018, using propensity score matching and difference in difference methods, it is found that the commercial credit of enterprises will decrease significantly after bank intervention. In particular, the higher the concentration of suppliers, the greater the inhibitory effect of bank intervention on enterprise commercial credit, which means that strong suppliers are more likely to add insult to injury; and the more perfect the financial contract system, the greater the inhibitory effect of bank intervention on enterprise commercial credit, that is, the contract system strengthens the protection of the rights of bank claims. This paper provides a theoretical basis and policy reference to improve the commercial credit quality of enterprises in coastal areas.

©Coastal Education and Research Foundation, Inc. 2020
Yi Yang and Jingjing Cheng "Bank Intervention and Commercial Credit: An Empirical Study of Debt Default Enterprises in Coastal Regions," Journal of Coastal Research 107(sp1), 425-430, (11 August 2020). https://doi.org/10.2112/JCR-SI107-095.1
Received: 19 May 2020; Accepted: 16 June 2020; Published: 11 August 2020
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KEYWORDS
commercial credit
Debt default
difference in difference model
propensity score matching method
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