US Governmental Sanctions and Financing Constraints of the Chinese Firms | Episode No.105

Workshop’s Topic: Based on the listed Chinese A-share firms spanning 2007 to 2021, this paper finds that the US governmental sanctions have seriously deteriorated their financing constraints. It is further shown that this adverse impact is more pronounced for those firms with greater risk exposure, while the following firm traits can alleviate financing constraints caused by sanctions: high market position, strong innovation and research capabilities, and effective government support policies. Moreover, the impact of the US governmental sanctions on the Chinese firms is shown to be mainly due to reduced corporate performance, raised financing costs, worsened corporate risks, and reduced market expectations. Various robustness and endogeneity tests confirm our main conclusions.

Time and Location: 15:00-17:00 PM (GMT+8), Room A423 (School of Management)

Language: Bilingual (Chinese and English)

Introduction of Speakers

Prof. LI Donghui

Shenzhen University, School of Economics

Professor Li Donghui graduated from Wuhan University with a bachelors degree in economics and worked for three years in the Financial Audit Department of the Peoples Republic of China. From 2001 to 2015, he was a lecturer, lifelong associate professor, doctoral supervisor and director of undergraduate honors degree programs at the University of New South Wales in Australia; from March 2015 to December 2015, he was a professor and doctoral supervisor at Sun Yat sen University; from June 1, 2016 to September 3, he was the executive dean, professor and doctoral supervisor of the School of Management at Jinan University; from September 2019 to present, he is a professor and doctoral supervisor at the School of Economics of Shenzhen University. His main research direction is corporate finance and finance, with great influence in the international academic community and high-level influence in the Chinese academic community. His academic papers have been published in top-ranking finance and economics journals such as Journal of Finance, Journal of International Business Studies, Journal of Financial and Quantitative Analysis and many others.