讲座题目：The impact of holding bank ownership on investment efficiency: Evidence from China.
Dr. Tianpei Luo holds a lecturer (assistant professor) position at School of Economics and Finance, Curtin University, Australia. He received his Ph.D from Deakin University in 2016. His main research focus is in the area includes, political connection, ownership structure, mergers and acquisitions and corporate governance in the Chinese capital market. He got publications in high ranked journals such as Journal of Corporate Finance, Pacific Basin Finance Journal and Accounting and Finance. One of his papers has been received the Pacific Basin Finance Journal Best Paper award in 2015. Tianpei is currently a reviewer for the journals of International Review of Finance, The World of Economy and Accounting and Finance.
This study examines the impact of holding bank ownership on the firms’ investment efficiency in Chinese capital market. We find that the economic bond with banks reduce the investment inefficiency in holding firms by mitigating both underinvestment and overinvestment. Our analysis reveals that holding bank ownership ameliorates the underinvestment by mitigating financial constraints through raising more bank loans and through reducing the cash flow sensitivity of cash holdings. Holding bank ownership also reduces the overinvestment by enhancing corporate governance through the stricter disclosure requirement and closer monitoring from dual regulatory agencies, which results in lower level of corporate cash holdings and controlling shareholder expropriations, especially in firms with a high propensity of overinvestment. Finally, we find that impact of holding bank ownership on reducing investment inefficiency is more pronounced in non-SOEs, firms located in provinces with low marketization and firm without institutional investors.