IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v83y2025ics1544612325009717.html
   My bibliography  Save this article

Local government debt transparency, investor confidence, and corporate financial risk

Author

Listed:
  • Li, Wenxue
  • Liu, Fei

Abstract

Local government debt has become a significant concern in China’s economy. This study explores how local government debt transparency influences firms’ financial risk, analyzing a sample of publicly listed Chinese enterprises from 2013 to 2023. The results show that increased transparency in local government debt notably lowers firms’ financial risk, particularly for non-state-owned and high-tech firms. Investor confidence playing a crucial mediating role in this relationship. The findings remain consistent after performing multiple sensitivity and endogeneity tests. This research generates a crucial contribution to the expanding body of studies on local government debt.

Suggested Citation

  • Li, Wenxue & Liu, Fei, 2025. "Local government debt transparency, investor confidence, and corporate financial risk," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009717
    DOI: 10.1016/j.frl.2025.107713
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325009717
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107713?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009717. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.