Financing, Reputation and Information Disclosure Quality in the Chinese Market

Abstract

In this article, we propose a theoretical model based on the reputation theory and hypothesize a positive relation between the information disclosure quality and the company's refinancing decision. We collected data from the listed companies, which refinances in Shenzhen main board and SME board during 2006—2012, as a panel sample, and tested the hypothesis empirically. The results indicate that there exists a significant positive correction short-term relation between refinancing decision and the information disclosure quality, but in the long term the relationship between the information disclosure quality and refinancing decision is not significant.

Department(s)

Business and Information Technology

Keywords and Phrases

Decision analysis; Empirical analysis; Error correction; Financial market; Small and medium-sized enterprise; China; Guangdong; Shenzhen; Chinese market; Financing; Information disclosure quality; Reputation

International Standard Serial Number (ISSN)

0003-6846; 1466-4283

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2016 Taylor & Francis, All rights reserved.

Publication Date

01 Feb 2016

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