When governments opt for financial repression policies, credit mismatch becomes more prevalent. This may lead some non-financial firms with excessive loans to financialize their operations and undertake shadow banking activities, that is, entrusted loans. Using all listed Chinese firm's...

Taken the cancellation of the upper limit of loan interest rates as a quasinatural experiment and based on the signal theory of auditor demand, this paper investigates how the improvement of credit availability affects the choice of auditors. Results show that, compared with low-risk...