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Impact of government-guided funds on firms’ new quality productivity

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  • Li, Yinxia
  • Wang, Yu
  • Zhang, Ying

Abstract

New quality productivity is a core driver of China’s high-quality development and economic transformation, and its formation mechanisms and policy support pathways have attracted increasing scholarly and policy attention. Using a sample of A-share listed firms from 2009 to 2024, this study examines the impact of government-guided funds on firms’ new quality productivity. The results reveal that government-guided funds significantly enhance new quality productivity, with the effect strengthening over time and remaining robust across multiple tests. The mechanism operates through alleviating financing constraints and improving corporate governance. Heterogeneity analysis shows that the effect is more pronounced for high-tech firms and in regions with lower market and financial development, reflecting the policy orientation of “targeted empowerment and filling market gaps.” The findings provide theoretical foundations and policy implications for optimizing government-guided funds’ effectiveness and advancing technological innovation and high-quality development.

Suggested Citation

  • Li, Yinxia & Wang, Yu & Zhang, Ying, 2026. "Impact of government-guided funds on firms’ new quality productivity," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025966
    DOI: 10.1016/j.frl.2025.109347
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