Spare Tire View Of Stock Market

The impact of the banking crisis on the economy has always been the focus of academic attention.The occurrence of banking crisis leads to the tightening of market liquidity,the sharp rise of non-performing loan rate of banks,which affects the normal financing and credit behavior of enterprises,and has a significant negative impact on the survival and development of enterprises and the growth of national economy.Therefore,it is of great significance for China's financial market reform to establish a corresponding system before the crisis to reduce the harm of the banking crisis to the enterprises and the economy,and to ensure that the development foundation of the enterprises and the economy will not be greatly eroded.Based on the micro data of enterprises during the systemic banking crisis in 18 countries,this paper evaluates Greenspan's "spare tire view" on the stock market.Using the panel fixed effect model,this paper finds that:(1)to improve the protection degree of a country's law to shareholders can make enterprises obtain more equity financing during the systemic banking crisis.For enterprises in countries with high dependence on external financing and in countries with market as the main financing channel,the improvement of the protection degree of the law to shareholders has more obvious influence on their equity financing Obvious.(2)The more equity financing enterprises can obtain during the systemic banking crisis,the better their profit performance will be.In addition,for those countries which are in low financing dependence industries and have little harm from bank crisis,equity financing plays a more significant role in corporate earnings performance.(3)During the crisis,the equity financing obtained by enterprises affects the improvement of corporate profits through investment level and R&D cost,and the intermediary effect of R&D cost is smaller than that of investment level.