IDEAS home Printed from https://ideas.repec.org/a/taf/recsxx/v26y2023i1p2207325.html
   My bibliography  Save this article

The role of instituions in the corporate debt-productivity relationship: evidence from listed firms in China

Author

Listed:
  • Chengchun Li
  • Huanhuan Lu
  • Min Wu
  • Da Teng

Abstract

This paper examines the relationship between corporate debt and firm productivity. We add to the existing literature by investigating the contingency effect of institutional quality in the corporate debt-productivity nexus. Using data for 2,084 Chinese listed firms, we find that corporate debt and political institutional quality have significant and negative impacts on productivity while legal institutional quality is significantly and positively associated with productivity. Also, our results reveal that both financial and fintech-supporting institutional factors exert negative contingency effects in the corporate debt-productivity relationship. Our findings provide a reasonable guideline for emerging market countries aiming to address the corporate debt overhang problem or seeking factors to boost firm productivity growth.

Suggested Citation

  • Chengchun Li & Huanhuan Lu & Min Wu & Da Teng, 2023. "The role of instituions in the corporate debt-productivity relationship: evidence from listed firms in China," Journal of Applied Economics, Taylor & Francis Journals, vol. 26(1), pages 2207325-220, December.
    • Handle: RePEc:taf:recsxx:v:26:y:2023:i:1:p:2207325
    DOI: 10.1080/15140326.2023.2207325
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15140326.2023.2207325
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15140326.2023.2207325?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 search for a different version of it.

    More about this item

    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:taf:recsxx:v:26:y:2023:i:1:p:2207325. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recs .

    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.