The Misallocation of Finance

• 成果类型: Article
• 署名作者: Whited, Toni M.; Zhao, Jake
• 署名单位: University of Michigan System; University of Michigan; National Bureau of Economic Research; Peking University; Peking University Shenzhen Graduate School (PKU Shenzhen)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13031
• 发表日期: 2021
• 页码: 2359-2407
• 关键词: corporate-finance; tax benefits; AGENCY COSTS; firm; PRODUCTIVITY; debt; turnover; DYNAMICS; MARKETS; inputs

摘要

We estimate real losses arising from the cross-sectional misallocation of financial liabilities. Extending a production-based framework of misallocation measurement to the liabilities side of the balance sheet and using manufacturing firm data from the United States and China, we find significant misallocation of debt and equity in China but not the United States. Reallocating liabilities of firms in China to mimic U.S. efficiency would produce gains of 51% to 69% in real value-added, with only 17% to 21% stemming from inefficient debt-equity combinations. For Chinese firms that are large or in developed cities, we estimate lower distortionary financing costs.