Does Local Debt Governance Ease Corporate Financing Constraints? Empirical Evidence from Chinese A-Share Listed Companies

Banchi Xia

2022

Abstract

Local debt governance is an important practice of China’s economy in the new era. Based on the A-share data of Chinese listed companies from 2010 to 2019, this paper takes the 2015 "New Budget Law" as an exogenous impact and constructs an intensity DID model. The research finds that local debt governance will make companies reduce cash on hand, thereby effectively alleviating the impact of corporate debt. A series of robustness tests prove the rationality and effectiveness of the DID model. The results of heterogeneity analysis show that local debt governance has different effects on alleviating the financing constraints of different types of enterprises. Among them, the effect on non-state-owned enterprises is stronger than that on state-owned enterprises, and the effect on high-tech enterprises is stronger than that on low-tech enterprises. What’s more, the role of enterprises is stronger for enterprises in inland cities than for enterprises in coastal cities. This paper provides relevant policy suggestions for optimizing local debt governance and promoting the high-quality development of enterprises in the new era.

Paper Citation

in Harvard Style

Xia B. (2022). Does Local Debt Governance Ease Corporate Financing Constraints? Empirical Evidence from Chinese A-Share Listed Companies. In Proceedings of the 2nd International Conference on Public Management and Big Data Analysis - Volume 1: PMBDA; ISBN 978-989-758-658-3, SciTePress, pages 308-316. DOI: 10.5220/0012074200003624

in Bibtex Style

@conference{pmbda22,
author={Banchi Xia},
title={Does Local Debt Governance Ease Corporate Financing Constraints? Empirical Evidence from Chinese A-Share Listed Companies},
booktitle={Proceedings of the 2nd International Conference on Public Management and Big Data Analysis - Volume 1: PMBDA},
year={2022},
pages={308-316},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012074200003624},
isbn={978-989-758-658-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Public Management and Big Data Analysis - Volume 1: PMBDA
TI - Does Local Debt Governance Ease Corporate Financing Constraints? Empirical Evidence from Chinese A-Share Listed Companies
SN - 978-989-758-658-3
AU - Xia B.
PY - 2022
SP - 308
EP - 316
DO - 10.5220/0012074200003624
PB - SciTePress