Work

Peer effect of nonfinancial corporate shadow banking: Evidence from common analyst networks in China

Year: 2025

Type: article

Abstract: Taking shadow banking activities among non-financial corporations as a starting point, this paper explores the shadow banking peer effect and its mechanism of action of A-share non-financial corporations under common analyst networks in China's Shanghai and Shenzhen markets during the period 2007-2020. It is found that there is a significant positive peer effect on the shadow banking behavior of non-financial corporations under the common analyst network, which mainly originates from the role mechanisms of information transmission and performance competition of common analysts. Further analysis shows that this shadow banking peer effect reduces firm performance and increases the risk of stock price collapse. This paper not only expands the scope of research on shadow banking of non-financial corporations, but also has some practical significance in uncovering the risks posed by shadow banking mitigated by securities analysts.

Source: Global Finance Journal

DOI: 10.1016/j.gfj.2025.101201

Authors: Tingting Liu, Yong Du, Shuying Tan, Shuhan Zhao

Institutions: Chongqing University of Technology, Southwest University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,860

Funders: Chongqing University of Technology, Chongqing Municipal Education Commission, Chongqing Social Science Planning Fund