What Determines the Subsidy Decision Bias of Local Governments? An Enterprise Heterogeneity Perspective

Wei Peng, Chi-Chuan Lee and Ke Xiong

Emerging Markets Finance and Trade, 2021, vol. 57, issue 4, 1215-1231

Abstract: This paper evaluates whether enterprise heterogeneity affects the subsidy behavior of local governments for Chinese listed companies over the period 2007–2017. After using the logit and the Tobit regression analyses, the result reveals that enterprise heterogeneity significantly influences the fiscal subsidy selection strategy and policy bias. Local governments are more likely to subsidize high-tech enterprises, state-owned enterprises, and exporting enterprises. The profitability of an enterprise is negatively related subsidies, which confirms the helping-hand role played by local governments. The robustness of our findings is explored in a variety of extensions including quantile regression and investigation of regional heterogeneities.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2019.1620099 (text/html)
Access to full text is restricted to subscribers.

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:mes:emfitr:v:57:y:2021:i:4:p:1215-1231

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2019.1620099

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().