Can industry-finance cooperation firm enhance total factor productivity: evidence from listed companies
Jie Zhu, Chen Tang, Ziqian He, Ye Xu, Changqi Tao
Keywords:
Industry-finance cooperation, Total factor productivity, innovation, Difference in difference approach
Abstract:
Industry-finance cooperation is a key step for advancing financial reform. It is of profound significance to study the mechanism and policy structure of industry-finance cooperation. Taking China's industry-finance cooperation as a quasi-natural experiment, the difference-in-difference (DID) approach is used to analyze listed enterprises from 2013 to 2020. We find that industry-finance cooperation promotes enterprises’ total factor productivity (TFP). To bolster the credibility of empirical results, we conduct a series of robustness checks, such as the parallel trends assumption verification, placebo test, and alternative variable definitions. To control for endogeneity, we further utilize methods such as PSM-DID and instrumental variable estimation. Our findings indicate heterogeneous effects: industry-finance cooperation exerts a stronger impact on TFP for (1) state-owned enterprises, (2) capital-intensive and traditional manufacturing firms, and (3) enterprises located in provincial capitals or central cities. Furthermore, industry-finance cooperation is to improve TFP by reducing the R&D expenditure, improving the investment efficiency, and reducing the internal costs. In light of the foregoing conclusions, the Chinese government should continue advancing and refining the pilot and mechanism of industry-finance collaboration. By adopting a localized policy approach tailored to regional conditions, it can better leverage finance's role in bolstering the real economy.
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 Can industry-finance cooperation firm enhance total factor productivity: evidence from listed companies [PDF file] [Filesize: 656.36 KB]
 10.7441/joc.2025.02.05
Zhu, J., Tang, C., He, Z., Xu, Y., & Tao, C. (2025). Can industry-finance cooperation firm enhance total factor productivity: Evidence from listed companies. Journal of Competitiveness,17(2). https://doi.org/10.7441/joc.2025.02.05
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