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Impacts of banking competition on firm performance and the mediating effect of financing constraints

Author

Listed:
  • Zhou, Zirui
  • Li, Yuanxu
  • Liu, Mingzhen
  • Tian, Ting

Abstract

This study utilizes a sample of listed Chinese companies from 2012 to 2022 to investigate how banking competition influences enterprise performance and to examine the mediating role of financing constraints. It reveals that banking competition can effectively foster enterprise growth and positively impact enterprise performance. Additionally, banking competition enhances enterprise performance by mitigating financing constraints. However, for small and medium-sized enterprises (SMEs) and non-state-owned enterprises (NSOEs), the sensitivity of the influence of banking competition on enterprise performance is reduced.

Suggested Citation

  • Zhou, Zirui & Li, Yuanxu & Liu, Mingzhen & Tian, Ting, 2025. "Impacts of banking competition on firm performance and the mediating effect of financing constraints," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000480
    DOI: 10.1016/j.frl.2025.106783
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