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The impact of city financial ecology on firm financing efficiency: Evidence from China’s strategic emerging industries

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Listed:
  • Hanbo Zhang
  • Guiyang Zhang
  • Yong Qi
  • Yuchen Gao
  • Dong Wang
  • Xing Li

Abstract

Based on the concept of bionics and the connotation of city financial ecology, this study constructs a 3-level and 27-indicator evaluation index system, including financial ecology growth, soil, and air. This study uses the entropy-TOPSIS model to weigh indicators objectively and evaluate the financial ecology of 343 China’s prefecture-level cities during 2009–2016. This study uses the DEA-Tobit method to assess the financing efficiency of 4013 China’s strategic emerging listed firms during 2010–2017 and runs random-effect Tobit panel regressions. Regression results suggest that a city’s financial ecology overall has a positive effect on strategic emerging firms’ financing efficiency. Therefore, the government should: improve the multi-tiered financial market system and encourage financial innovation; transform the economic growth model and optimize the industrial structure; establish an information-sharing mechanism and construct a social credit system.

Suggested Citation

  • Hanbo Zhang & Guiyang Zhang & Yong Qi & Yuchen Gao & Dong Wang & Xing Li, 2023. "The impact of city financial ecology on firm financing efficiency: Evidence from China’s strategic emerging industries," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-16, August.
    • Handle: RePEc:plo:pone00:0288229
    DOI: 10.1371/journal.pone.0288229
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    References listed on IDEAS

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