The impact of business environment on corporate default risk: evidence from China

Jianxiang Liu and Wen Yu Yi

Applied Economics Letters, 2025, vol. 32, issue 5, 644-651

Abstract: We examine the relationship between business environment optimization and company default risk using unique data from the Chinese capital market. The result of our study demonstrates that business environment optimization is associated with a reduction in default risk, and this finding holds even after conducting a series of robustness tests. Mechanism analysis suggests that business environment optimization primarily reduces default risk through enhancing total factor productivity and lowering operational risk. The findings of this study highlight the importance of a favourable business environment for achieving high-quality and healthy economic development.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2023.2279225 (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:taf:apeclt:v:32:y:2025:i:5:p:644-651

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2023.2279225

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().