Capital Supply and Financial Risk of Enterprises

Research on the Relationship Between Shareholders and Banks and Enterprises

DOI

10.2991/assehr.k.210407.160How to use a DOI?

Keywords

financial risk, shareholder relationship, bank enterprise relationship

Abstract

Based on the clear definition of financial risk, this paper discusses the relationship between shareholders, banks and financial risk. The results show that: to a certain extent, shareholders’ behavior affects the financial risk of enterprises. When the amount of capital contribution of shareholders is reduced or the related party transactions under the control of large shareholders occur frequently, the probability of financial risk of enterprises is higher; In the following four cases, bank enterprise relationship reduces the probability of financial risk: the enterprise is state-owned, the bank and the enterprise have established a long-term trading relationship; the enterprise appoints people who was worked in bank background as directors or senior managers; the financial institutions send directors to the enterprise, forming an effective third-party supervision.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hua Yang
PY  - 2021
DA  - 2021/04/08
TI  - Capital Supply and Financial Risk of Enterprises
BT  - Proceedings of the 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021)
PB  - Atlantis Press
SP  - 850
EP  - 854
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210407.160
DO  - 10.2991/assehr.k.210407.160
ID  - Yang2021
ER  -