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Does Financial Leakage is Leak without Loss?——Evidence from Micro-enterprises in China
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TitleDoes Financial Leakage is Leak without Loss?——Evidence from Micro-enterprises in China  
AuthorBai Jun,Meng Qingxi,Lian Lishuai and Wang Shengnian  
OrganizationShihezi University; Shanghai University of Finance and Economics; East China Normal University;;; 
Key WordsFinancial Repression; Leakage Effect; Economic Consequence; Fund-supply; Fund-demand 
AbstractDoes Financial leakage is leak without any loss or leak with loss under the resources mismatch? Using the listed companies from 2000 to 2015 and small and medium industrial enterprises from 1998 to 2013, we find that financial leakage does exist; Further, we conclude that the existence of financial leakage is harmful to the main business of fund-supply, listed companies, despiting its other benefits; Our results also imply that financial leakage lead to the scale expansion of fund-demand, small and medium industrial enterprises, at the expense of lower market position and production efficiency. This phenomenon is far from being rare between enterprise with high quality. In a word, we not only provide empirical evidence about the fund flow from some enterprises to others, but also response the debate on the consequence of informal finance. 
Serial NumberWP1414 
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