Political connections, institutional environments and loan renewals--The evidences from the privately listed enterprises.

Bank loans is the mainly channels of the external financing for corporations in China, and loan renewals policy determines whether a company can continue to access bank loans. By the data of Chinese non-financial listed companies in stock exchange market, the paper investigates the relationships between political connections, institutional environments and loan renewals. The thesis finds that political connections do have impacts on access to more preferential treats of bank loans. And political connections have impacts on bank loans in different institutional environments. We also found that the higher level of regional property right protection, the less powerful of the government intervention and the higher of the financial development, the less loan renewals the enterprises will get. [ABSTRACT FROM AUTHOR]