How does the marketization of public resources alleviate corporate credit mismatches?

Qi Wang and Cisheng Wu

Finance Research Letters, 2024, vol. 62, issue PB

Abstract: Market-oriented allocation of public resources is crucial for supporting the high-quality development strategy of Chinese-style modernization. This paper examines how the market-oriented allocation of public resources affects the credit mismatches of enterprises in different cities by focusing on establishing public resource trading centers in China. The analysis is based on listed firms from 2010 to 2022. A multi-period difference-in-difference model is employed to explore the effects and underlying mechanisms. The findings indicate that marketization of public resources can effectively alleviate corporate credit mismatch, and the impact is achieved by mitigating corporate financing constraints and information asymmetry.

Keywords: Marketization of public resources; Credit mismatch; Financing constraints; Information asymmetry (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002198

DOI: 10.1016/j.frl.2024.105189

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