Industrial policy, corporate strategic differences, and debt financing cost

Dongbo Liu, Yu Wang and Changling Sun

Asia-Pacific Journal of Accounting & Economics, 2022, vol. 29, issue 1, 36-52

Abstract: Taking the non-financial companies listed on the Chinese capital market in China from 2007 to 2015 as samples combined with the macroeconomic environment faced by enterprises, this paper explores the impacts and functional mechanism of strategic differences on debt financing cost under different levels of industrial policy support. The results show that (1) strategic differences increase the debt financing cost of enterprises, and further research finds that the quality of accounting information, internal controls, and financing constraints play a mediating role in it and (2) the support of industrial policy weakens the impact of strategic differences on the debt financing cost of enterprises, with this phenomenon more apparent in the state-owned, large-scale, and lower-growth enterprises. This paper complements and improves on the related research on the factors that affect debt financing cost and the economic consequences of strategic differences. At the same time, it also provides enlightenment for enterprises to make strategic choices and optimize the allocation of credit resources under the support of different macroeconomic policies.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2019.1673195 (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:raaexx:v:29:y:2022:i:1:p:36-52

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2019.1673195

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().