We perform transaction-level analyses of entrusted loans, one of the largest components of shadow banking in China. Entrusted loans involve firms with privileged access to cheap capital channeling funds to less privileged firms, and the increase when credit is tight. Nonaffiliated loans have much higher interest rates than both affiliated loans and official bank loans, and they largely flow into real estate. The pricing of entrusted loans, especially of nonaffiliated loans, incorporates fundamental and informational risks. Stock market reactions suggest that both affiliated and nonaffiliated loans are fairly compensated investments. (C) 2019 Elsevier B.V. All rights reserved.
本文根据 Douglas Cumming，T.Y. Leung，Oliver M. Rui. Gender Diversity and Securities Fraud. Academy of Management Journal, 2015, 1572-1593. 论文翻译而成。刘心洁编译，论文原作者之一芮萌教授对原文进行了适当改写。