The real effect of shadow banking regulation: evidence from the cost of equity capital

Applied Economics Letters 2026

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Authors: Yizhong Wu, Xiaoxing Liu, Chenyao Zhang
DOI: 10.1080/13504851.2026.2634867
Cited by: 0
References: 16

Abstract

As one of the most important regulatory policies to combat shadow banking, the New Asset Management Regulations (NAMR) aim to regulate the asset management business. This study explores the effects of NAMR on the cost of equity capital. We find that NAMR can significantly increase cost of equity capital, which is attributed to corporate profits reduction caused by the NAMR. This research reveals the negative effects of financial regulation.

Fields of Study & Subjects

Banking stability regulation efficiency Corporate Finance and Governance Finance Markets and Regulation

Publication details

Journal / source
Applied Economics Letters
Pages
1–5
Publication date
23 February 2026
Language
EN