This webinar spotlighted new research by Ben Charoenwong of the National University of Singapore Business School which explored the social and economic costs of local government debt, drawing upon a dataset of over a million local government procurement contracts in the People’s Republic of China. He explained how firms contracting with local governments with high maturing debt-to-fiscal income see an increase in accounts receivables that do not reverse, a decrease in cash balances, and an increase in the probability of litigation by creditors. He also discussed how affected firms are less likely to repeat government contractors and more likely to see protests relating to non-payment of wages or pension contributions.

About the speaker

Ben Charoenwong is an assistant professor of finance at the National University of Singapore. He completed a Ph.D. in finance and an MBA at the University of Chicago Booth School of Business. His research focuses on financial regulation, corporate governance, household finance, and corporate finance.

See more about this ADBI event here.