, indicating an information advantage of those banks over the others. The paper adds to the literature by showing that the …

We examine China's June 2013 liquidity crunch as a negative shock to banks and analyze the wealth effects on exchange …, particularly borrowers reporting outstanding loans at the end of 2012. Stock valuations of firms with long-term bank relationships … relationships. This effect is the strongest for firms that enjoy good relations with China's large state-owned banks or foreign …

market. These results suggest that banks transmit liquidity shocks to their borrowing firms and that the long-term bank …We exploit a liquidity crunch of 2013 in China as a negative shock to banks and analyze the wealth effects on listed …, firms having long-term relationship with banks outperformed in stock market and subsequently experiecend a smaller decline …