IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v84y2025ics1544612325010505.html

How government actions influence corporate financing efficiency

Author

Listed:
  • Dang, Chonglei
  • Sun, Liangzhu
  • Wang, Xingdong
  • Lin, Zhen

Abstract

This study examines Chinese listed companies to explore the relationship between township government actions and corporate financing efficiency. The findings indicate that the implementation of industrial policies can significantly enhance financing efficiency; the impact of industrial policies on the financing efficiency of large-scale enterprises differs from that of small-scale enterprises; there are significant differences in the effect of industrial policies on the financing efficiency of enterprises that are key targets of support versus those that are not; and the level of local economic support plays a moderating role in the relationship between industrial policies and corporate financing efficiency.

Suggested Citation

  • Dang, Chonglei & Sun, Liangzhu & Wang, Xingdong & Lin, Zhen, 2025. "How government actions influence corporate financing efficiency," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010505
    DOI: 10.1016/j.frl.2025.107792
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325010505
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107792?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.

    References listed on IDEAS

    as
    1. Boqiang Lin & Wei Wu & Malin Song, 2023. "Industry 4.0: driving factors and impacts on firm’s performance: an empirical study on China’s manufacturing industry," Annals of Operations Research, Springer, vol. 329(1), pages 47-67, October.
    2. Shi, Jinyan & Yu, Conghui & Li, Yanxi & Wang, Tianhe, 2022. "Does green financial policy affect debt-financing cost of heavy-polluting enterprises? An empirical evidence based on Chinese pilot zones for green finance reform and innovations," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    3. He, Feng & Ding, Cong & Yue, Wei & Liu, Guanchun, 2023. "ESG performance and corporate risk-taking: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 87(C).
    4. Jin, Yi & Gao, Xiaoyan & Wang, Min, 2021. "The financing efficiency of listed energy conservation and environmental protection firms: Evidence and implications for green finance in China," Energy Policy, Elsevier, vol. 153(C).
    5. Yu, Wanqing & Gan, Yufei & Zhou, Bingjun & Dai, Jiapeng, 2024. "Revisiting the economic policy uncertainty and resource rents nexus: Moderating impact of financial sector development in BRICS," International Review of Financial Analysis, Elsevier, vol. 94(C).
    6. Mao, Jie & Tang, Shiping & Xiao, Zhiguo & Zhi, Qiang, 2021. "Industrial policy intensity, technological change, and productivity growth: Evidence from China," Research Policy, Elsevier, vol. 50(7).
    7. Liu, Xiaohua & Zhao, Qiuhan, 2024. "Banking competition, credit financing and the efficiency of corporate technology innovation," International Review of Financial Analysis, Elsevier, vol. 94(C).
    8. Lian, Yonghui & Ye, Tao & Zhang, Yiyang & Zhang, Lin, 2023. "How does corporate ESG performance affect bond credit spreads: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 352-371.
    9. Piers Weston & Matthias Nnadi, 2023. "Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 13(2), pages 1058-1074, April.
    10. Susanne Arvidsson & John Dumay, 2022. "Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1091-1110, March.
    11. Lv, Miaochen & Bai, Manying, 2021. "Evaluation of China's carbon emission trading policy from corporate innovation," Finance Research Letters, Elsevier, vol. 39(C).
    12. Li, Lu & Zhou, Shiqi & Xu, Wei & Dai, Jiapeng, 2024. "Green innovation's impact on corporate financing: New insights from BRICS economies," Finance Research Letters, Elsevier, vol. 62(PB).
    13. Wei, Xiaoyun & Han, Liyan, 2021. "The impact of COVID-19 pandemic on transmission of monetary policy to financial markets," International Review of Financial Analysis, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Rukun, 2025. "The impact of corporate legal governance on financing efficiency: An empirical analysis based on corporate governance structure and legal risk," Finance Research Letters, Elsevier, vol. 86(PB).
    2. Wang, Junwei & Xing, Yafei & Xiao, Daibo, 2025. "An empirical study on the relationship between executives' financial background and corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 102(C).
    3. Zhang, Yuyang & Zhang, Ningning, 2025. "Green finance policies and corporate environmental, social, and governance performance," Finance Research Letters, Elsevier, vol. 81(C).
    4. Chen, Qian, 2024. "Media coverage, social trust and corporate financing efficiency," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    5. Wang, Muyun & Zhang, Ying, 2024. "Controlling shareholders' equity pledge, litigation risk and corporate ESG performance," International Review of Economics & Finance, Elsevier, vol. 95(C).
    6. Yuan Feng & Changfei Nie, 2024. "Digital technology innovation and corporate environmental, social, and governance performance: Evidence from a sample of listed firms in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3836-3854, September.
    7. Deng, Hong & Li, You & Lin, Yongjia, 2023. "Green financial policy and corporate risk-taking: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PB).
    8. Shi, Dinghao & Tan, Haoyu & Ling, Yixin & Liu, Yunuo & Liu, Bo & Tu, Yongqian, 2025. "Impact of environmental information uncertainty and market competition on corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 99(C).
    9. Tan, Yingxue & Lin, Bo & Wang, Leyi, 2025. "Green finance and corporate environmental performance," International Review of Economics & Finance, Elsevier, vol. 98(C).
    10. Liang, Jinma & Zhang, Yicheng & Li, Yuanheng, 2024. "The role of ESG scores in ESG fund performance and institutional investor selection," Finance Research Letters, Elsevier, vol. 65(C).
    11. Zhao, Yidan & Zhang, Cong & Zhao, Yiming & Zhou, Lin, 2025. "Data-Driven sustainability: Examining the impact of data element utilization on corporate ESG performance," Finance Research Letters, Elsevier, vol. 73(C).
    12. Li, Zongmin, 2025. "Employee stock ownership, agency costs and corporate financial information quality," Finance Research Letters, Elsevier, vol. 85(PD).
    13. Zhang, Jianfeng & Wu, Wang, 2024. "The impact of foreign ownership on corporate ESG performance," Finance Research Letters, Elsevier, vol. 66(C).
    14. Sun, Zhaoyang & Rao, Meng & Yao, Baoshuai & Ci, Huifang & Li, Zongrun & Feng, Chao, 2025. "Driving enterprise new quality productivity: The role of big data tax collection," International Review of Financial Analysis, Elsevier, vol. 103(C).
    15. Zhan, Huawang & Shen, Huayu & Guo, Hui, 2025. "Research on the impact of ESG scores on corporate substantive and strategic green innovation," Innovation and Green Development, Elsevier, vol. 4(1).
    16. Liyuan Meng & Yuchen Zhang, 2023. "Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    17. Cao, Peng & Huang, Rong, 2025. "How does media attention affect corporate credit asset allocation efficiency?," Finance Research Letters, Elsevier, vol. 75(C).
    18. Zhao, Meng & Feng, Yuan & Niu, Shuai, 2025. "Promoting corporate social responsibility through green finance legislation," Research in International Business and Finance, Elsevier, vol. 75(C).
    19. Li, Junjun & Wu, Tong & Hu, Boqiang & Pan, Dongliang & Zhou, Yaqiong, 2025. "Artificial intelligence and corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 102(C).
    20. Xu, Ting & Ding, Chante Jian, 2026. "The path of urban sustainable development: The mechanism and heterogeneous effects of ecological industrial Parks in energy efficiency," Energy Policy, Elsevier, vol. 209(PA).

    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:84:y:2025:i:c:s1544612325010505. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.