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Private economy development, enterprises financialization, and total factor productivity of enterprises

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  • Tang, Ye

Abstract

This study examines the impact of financialization on total factor productivity (TFP) in private enterprises, focusing on companies listed on the Shanghai and Shenzhen stock exchanges in China from 2013 to 2022. The analysis reveals that increased financialization within private firms negatively impacts TFP. This finding remains consistent across various robustness checks. Further analysis reveals that the adverse impact of financialization on TFP is more pronounced in firms situated in regions with substantial financing constraints and lower levels of market development. These results offer empirical evidence on the economic implications of financialization in businesses and support the ongoing development of the private sector.

Suggested Citation

  • Tang, Ye, 2025. "Private economy development, enterprises financialization, and total factor productivity of enterprises," International Review of Economics & Finance, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024007172
    DOI: 10.1016/j.iref.2024.103725
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    References listed on IDEAS

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    3. Dai, Jiapeng & Phan Ah Kiaw, Jasmine & Yap Tat Hiung, Eddy, 2025. "Is some uncertainty better than none? Nonlinear relationships between climate policy uncertainty and corporate green performance," International Review of Economics & Finance, Elsevier, vol. 102(C).

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