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Government integrity, government–business collaboration, and corporate patient capital

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  • Ma, Cong
  • Shi, Xianping

Abstract

In the context of promoting high-quality corporate development and advancing supply-side structural reforms in finance, how firms cultivate patient capital to support long-term strategic investment and value creation has become a central concern for both academics and policymakers. Using data from Chinese A-share listed firms, this study empirically examines the impact of government integrity on patient capital and explores its underlying mechanisms. The results show that higher levels of government integrity significantly promote the formation of patient capital within firms. Mechanism analysis reveals that this effect operates primarily through two channels: strengthening institutionalized government–firm linkages and suppressing reliance on informal political connections. Further heterogeneity analysis indicates that the positive effect is more pronounced among state-owned enterprises, firms located in eastern China, and those led by executives with financial backgrounds. This study enriches the literature on the institutional determinants of corporate capital allocation and offers practical insights into optimizing the business environment, fostering transparent government–business relations, and encouraging long-termism in corporate behavior.

Suggested Citation

  • Ma, Cong & Shi, Xianping, 2026. "Government integrity, government–business collaboration, and corporate patient capital," Finance Research Letters, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:finlet:v:101:y:2026:i:c:s1544612326005635
    DOI: 10.1016/j.frl.2026.110034
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