The Impact of Marketization on Enterprise Performance from the Perspective of Enterprise Debt
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Published:2023-07-02
Issue:13
Volume:15
Page:10436
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ISSN:2071-1050
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Container-title:Sustainability
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language:en
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Short-container-title:Sustainability
Author:
Xie Fusheng1ORCID,
Yang Peixiang2
Affiliation:
1. Business School, Shanghai Normal University Tianhua College, Shanghai 201815, China
2. School of Marxism, Weihai, Shandong University, Weihai 264209, China
Abstract
The problem of corporate debt is a hidden danger to China’s economic growth and financial stability. This paper studies the effect of regional marketization on the debt burden of the local enterprises based on a fixed effects model. The result demonstrates that the higher the market-oriented degree, the lower the debt burden of the enterprises in that region. Further analysis demonstrates that the improvement of marketization not only directly reduces the enterprise debt, but also reduces debt burden by increasing the enterprise productivity and promoting the enterprise property rights reform. Improving the level of regional marketization is conducive to the enterprise debt issue, and this provides some suggestions to the policy makers.
Funder
Shanghai Chenguang Program
Collaborative Education Project of Ministry of Education” Construction of Fintech Micro Specialty Based on Financial Mathematics major”
Shandong Social Science Planning and Research Project “The Political Economics Research on the Development of China’s Finance from the Virtual Economy to the Real Economy”
Subject
Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development,Building and Construction
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