Private economy development, enterprises financialization, and total factor productivity of enterprises

Ye Tang

International Review of Economics & Finance, 2025, vol. 97, issue C

Abstract: This study examines the impact of financialization on total factor productivity (TFP) in private enterprises, focusing on companies listed on the Shanghai and Shenzhen stock exchanges in China from 2013 to 2022. The analysis reveals that increased financialization within private firms negatively impacts TFP. This finding remains consistent across various robustness checks. Further analysis reveals that the adverse impact of financialization on TFP is more pronounced in firms situated in regions with substantial financing constraints and lower levels of market development. These results offer empirical evidence on the economic implications of financialization in businesses and support the ongoing development of the private sector.

Keywords: Private economy; Total factor productivity; Enterprises financialization (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024007172

DOI: 10.1016/j.iref.2024.103725

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