Government–business relationship and strategic transformation of enterprises: Evidence from China

Liu Juntao and Liu Haitao

Finance Research Letters, 2023, vol. 58, issue PD

Abstract: This research uses data from private firms listed on China's A-share market (2016–2020), investigating the positive impact of strong regional government-business relations on firms' strategic transformations. Results indicate a positive correlation between healthier government-business relationships. Path testing reveals that the relationship primarily enhance the level of strategic transformation in private enterprises by reducing financing constraints within enterprises. This effect is stronger in areas with higher marketization levels and where management has significant shareholding. The study enriches understanding of the economic benefits of healthy government-business relations and offers empirical insights for enhancing strategic transformations in private enterprises.

Keywords: Government–business relationship; Strategic transformation; Financing constraints (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323009868
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009868

DOI: 10.1016/j.frl.2023.104614

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().