IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p4807-d1091409.html
   My bibliography  Save this article

Can the Opening of High-Speed Railway Restrain Corporate Financialization?

Author

Listed:
  • Ruo-Yu Zhu

    (School of Economics and Management, Beijing Jiao Tong University, Beijing 100044, China)

  • Ke-Hu Tan

    (School of Economics and Management, Beijing Jiao Tong University, Beijing 100044, China)

  • Xiao-Hui Xin

    (School of Economics and Management, Beijing Jiao Tong University, Beijing 100044, China)

Abstract

Under the background of the economy “shifting from real to virtual”, how to guide real enterprises to return to their main businesses has become an urgent problem to be solved in the stage of microeconomic bodies moving toward high-quality development. Based on the perspective of the opening of high-speed railway (HSR), this paper builds a time-varying DID model to systematically test the relationship between HSR and corporate financialization by matching the data of HSR among 286 cities in China with the data of A-share non-financial companies listed in the Shanghai and Shenzhen stock markets. The results showed that there is a significant negative correlation between HSR and corporate financialization, i.e., the opening of HSR can significantly inhibit corporate financialization. This conclusion still holds after a series of robustness tests. Mechanism analysis found that the opening of HSR can restrain corporate financialization through “crowding-out effects” and “liquidity replenishment effects”. Heterogeneity analysis showed that the inhibitory effect of HSR on corporate financialization is more significant in large enterprises, fiercely competitive industries, and cities with high initial transportation resources. This paper deeply explored the relationship between the opening of HSR and corporate financialization, which not only enriches the existing literature but also provides a useful reference for guiding real enterprises to actively return to their main businesses.

Suggested Citation

  • Ruo-Yu Zhu & Ke-Hu Tan & Xiao-Hui Xin, 2023. "Can the Opening of High-Speed Railway Restrain Corporate Financialization?," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:4807-:d:1091409
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/4807/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/4807/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang, Xuehui & Zhang, Huirong & Lin, Shanlang & Zhang, Jiaping & Zeng, Jianlong, 2021. "Does high-speed railway promote regional innovation growth or innovation convergence?," Technology in Society, Elsevier, vol. 64(C).
    2. Demir, FIrat, 2009. "Financial liberalization, private investment and portfolio choice: Financialization of real sectors in emerging markets," Journal of Development Economics, Elsevier, vol. 88(2), pages 314-324, March.
    3. Jiang, Fuxiu & Shen, Yanyan & Cai, Xinni, 2022. "Can multiple blockholders restrain corporate financialization?," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    4. Benjamin Faber, 2014. "Trade Integration, Market Size, and Industrialization: Evidence from China's National Trunk Highway System," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 1046-1070.
    5. Thomas I. Palley, 2013. "Financialization: What It Is and Why It Matters," Palgrave Macmillan Books, in: Financialization, chapter 2, pages 17-40, Palgrave Macmillan.
    6. Kellee S. Tsai, 2017. "When Shadow Banking Can Be Productive: Financing Small and Medium Enterprises in China," Journal of Development Studies, Taylor & Francis Journals, vol. 53(12), pages 2005-2028, December.
    7. Amit Bhaduri, 2011. "A contribution to the theory of financial fragility and crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(6), pages 995-1014.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Ruoyu & Tan, Kehu & Xin, Xiaohui, 2024. "Does the opening of high-speed rail inhibit corporate zombification?," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 372-389.
    2. Jinlong Chen & Weipeng Wu & Yiqun Zhuang, 2023. "Impact of Digital Supply Chain on Sustainable Trade Credit Provision: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(15), pages 1-23, August.

    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, Lirong & Long, Yuxuan & Tang, Xuemei & Wang, Jiani, 2025. "Can accounts receivable factoring restrain corporate financialization? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 98(C).
    2. Karsten Kohler & Alexander Guschanski & Engelbert Stockhammer, 2019. "The impact of financialisation on the wage share: a theoretical clarification and empirical test," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 43(4), pages 937-974.
    3. Zhang, Xiaoliang & Zheng, Xiaojia, 2024. "Does carbon emission trading policy induce financialization of non-financial firms? Evidence from China," Energy Economics, Elsevier, vol. 131(C).
    4. Giampaolo Gabbi & Elisa Ticci, 2014. "Implications of financialisation for sustainability," Working papers wpaper47, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    5. Fang Yang & Xu Li, 2023. "Corporate Financialization, ESG Performance and Sustainability Development: Evidence from Chinese-Listed Companies," Sustainability, MDPI, vol. 15(4), pages 1-28, February.
    6. Gong, Cynthia M. & Gong, Pu & Jiang, Mengting, 2023. "Corporate financialization and investment efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    7. Karsten Köhler & Alexander Guschanski & Engelbert Stockhammer, 2015. "How does financialisation affect functional income distribution? A theoretical clarification and empirical assessment," Economics Discussion Papers 2015-5, School of Economics, Kingston University London.
    8. Wang, Hanying & Qi, Ju & Li, Zhuohua & Sensoy, Ahmet & Xing, Hongwei, 2024. "Excessive financialization and “Original Sin Theory”: Redemption from corporate reputation," Research in International Business and Finance, Elsevier, vol. 70(PA).
    9. Jin, Wenwan & Zhu, Shengjun, 2023. "High-speed rail network and regional convergence/divergence in industrial structure," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    10. Chong Li & Qiuge Yao & Jing Wu & Daoyuan Wang, 2019. "Financialization and Risk Taking of Non-Financial Corporations Empirical Evidence from Chinese Listed Companies," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(3), pages 1-5.
    11. Daniele Tori & Özlem Onaran, 2018. "The effects of financialization on investment: evidence from firm-level data for the UK," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(5), pages 1393-1416.
    12. Shi, Wenxiang & Fang, Peijie, 2023. "Delisting regulation and corporate financialization: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PD).
    13. Thomas Goda, 2013. "The role of income inequality in crisis theories and in the subprime crisis," Working Papers PKWP1305, Post Keynesian Economics Society (PKES).
    14. Yang, Xuehui & Zhang, Huirong & Li, Yan, 2022. "High-speed railway, factor flow and enterprise innovation efficiency: An empirical analysis on micro data," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    15. Roberto Veneziani & Luca Zamparelli & Leila E. Davis, 2017. "Financialization And Investment: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1332-1358, December.
    16. Hu, Guoqiang & Sun, Wenxiang & Xu, Yuanzheng & Mao, Hong-an, 2025. "Executive accountability systems and the financial investments of state-owned enterprises in China," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    17. Xu, Xiaodong & Mu, Yayu & Wang, Juan, 2023. "Corporate risk and financial asset holdings," Pacific-Basin Finance Journal, Elsevier, vol. 81(C).
    18. Zhang, Ziqi & Su, Zhi & Tong, Fang, 2023. "Does digital transformation restrain corporate financialization? Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    19. Hui Wang & Qing Wang & Xia Sheng, 2021. "Does Corporate Financialization Have a Non-Linear Impact on Sustainable Total Factor Productivity? Perspectives of Cash Holdings and Technical Innovation," Sustainability, MDPI, vol. 13(5), pages 1-17, February.
    20. Shuxia Zhang & Xiangyang Yin & Liping Xu & Ziyu Li & Deyue Kong, 2022. "Effect of Environmental, Social, and Governance Performance on Corporate Financialization: Evidence from China," Sustainability, MDPI, vol. 14(17), pages 1-20, August.

    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:gam:jsusta:v:15:y:2023:i:6:p:4807-:d:1091409. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.