Heterogeneity Effect of Corporate Financialization on Total Factor Productivity
Abstract
:1. Introduction
2. Literature Review
3. Empirical Strategy and Research Design
3.1. Framework of Analysis and Definition of Treatment Effects
3.2. Data
Variable | Definition |
---|---|
TFP | LP Method |
Fi | Fi = 1, if corporate financialization greater than median of industry financialization, otherwise Fi = 0. |
Size | Logarithm of total assets |
Cashflow | Logarithm of net cash flows from operating activities |
Roe | Net profit/total assets |
Age | Current year—year of establishment of each company |
Growth | Annual growth rate of operating income |
Tng | Fixed assets/total assets |
Lev | Total liabilities/total assets |
Top | Number of shares held by the largest shareholder/total share capital |
SA | SA = −0.737 × Size + 0.04 × Size2 − 0.04 × Age |
Shibor | The shanghai interbank offered rate |
M2/GDP | M2/GDP |
R&D | R&D investment/total assets |
4. Empirical Results and Discussion
4.1. Instrumental Variable Estimates
4.2. Marginal Treatment Effects
4.3. Counterfactual Analysis
4.4. Robust Test
5. Mechanism
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Fi = 1 | Fi = 0 | |||
---|---|---|---|---|
Variable | Obs | Mean | Obs | Mean |
TFP | 7426 | 2.510 | 7500 | 2.562 |
Houseprice | 7735 | 9.076 | 7966 | 8.932 |
Cashflow | 8353 | 0.041 | 8606 | 0.038 |
Size | 8353 | 22.14 | 8606 | 21.91 |
Lev | 8353 | 0.443 | 8605 | 0.480 |
Roa | 8353 | 0.029 | 8606 | 0.034 |
Age | 8353 | 11.47 | 8608 | 9.134 |
Tng | 8353 | 0.524 | 8605 | 0.472 |
Top | 8353 | 33.78 | 8608 | 34.75 |
SA | 8353 | 2.892 | 8606 | 2.758 |
Growth | 8266 | 0.316 | 8349 | 0.348 |
Shibor | 8353 | 0.040 | 8608 | 0.040 |
M2/GDP | 8353 | 0.055 | 8608 | 0.055 |
R&D | 5043 | 0.039 | 5661 | 0.040 |
Variable | (1) | (2) | (3) |
---|---|---|---|
TFP | Fi | TFP | |
Houseprice | 0.139 *** | ||
Fi | (4.46) | ||
0.012 | −0.049 | ||
(0.011) | (−0.32) | ||
Cashflow | 0.025 | −0.012 | 0.059 |
(0.050) | (−0.20) | (1.46) | |
Size | 0.041 *** | −0.004 | 0.039 *** |
(0.014) | (−0.49) | (6.17) | |
Lev | −0.129 ** | 0.181 *** | −0.128 ** |
(0.051) | (3.46) | (−2.75) | |
Roa | 0.225 *** | −0.061 | 0.210 *** |
(0.082) | (−0.87) | (4.23) | |
Age | −0.001 | −0.005 | −0.0003 |
(0.002) | (−0.07) | (−0.01) | |
Tng | 0.043 | −0.037 | 0.038 |
(0.037) | (−0.88) | (1.26) | |
Top | 0.000 | −0.003 *** | 0.0007 |
(0.001) | (−4.22) | (1.19) | |
SA | −2.748 *** | −0.010 | −2.071 *** |
(0.241) | (0.007) | (0.105) | |
Growth | −0.002 | 0.001 | −0.005 |
(0.007) | (0.007) | (0.005) | |
Shibor | −2.772 | −6.801 | 1.359 |
(9.288) | (−0.03) | (0.01) | |
M2/GDP | −2.892 | −0.983 | −2.095 * |
(1.943) | (−0.70) | (−2.18) | |
Constant | 2.073 *** | - | - |
(0.321) | |||
Cragg-Donald-F | 19.86 | ||
IndustryFE | Yes | Yes | Yes |
YearFE | Yes | Yes | Yes |
CityFE | Yes | Yes | Yes |
Observations | 13,660 | 12,732 | 12,732 |
R-squared | 0.012 | 0.007 | 0.007 |
Variable | (1) | (2) | (3) | (4) |
---|---|---|---|---|
TFP | β0 | β1 − β0 | k | effect |
Cashflow | −0.492 ** | 1.521 *** | ||
(0.247) | (0.453) | |||
Roa | 0.906 *** | −1.138 * | ||
(0.325) | (0.582) | |||
Age | 0.034 * | −0.102 *** | ||
(0.018) | (0.034) | |||
Tng | 0.106 | 2.060 *** | ||
(0.126) | (0.305) | |||
mills | 2.590 * | |||
(1.512) | ||||
ATE | 0.239 | |||
(0.381) | ||||
ATT | −1.620 | |||
(1.232) | ||||
ATU | 2.136 * | |||
(1.210) | ||||
LATE | 1.798 ** | |||
(0.814) | ||||
mprte1 | 0.289 | |||
(0.367) | ||||
mprte2 | 0.265 | |||
(0.380) | ||||
mprte3 | 0.718 | |||
(0.455) | ||||
_cons | -- | −9.607 | ||
-- | (15.330) | |||
CityFE | Yes | Yes | ||
Observations | 12,483 | 12,483 |
Counterfactuals | PRTE |
---|---|
housing prices of tier one decrease by 40% | −0.157 (0.374) |
housing prices of tiers two & three decrease by 40% | 0.453 (0.377) |
housing prices of tier one decrease by 40%; housing prices of tiers two & three increase by 40% | 0.695 * (0.392) |
Variable | (1) Fi | (2) R&D |
---|---|---|
Houseprice | 0.146 *** | |
(0.037) | ||
Fi | −0.049 ** | |
(−0.237) | ||
Cragg-Donald-F | 15.36 | |
IndustryFE | Yes | Yes |
YearFE | Yes | Yes |
CityFE | Yes | Yes |
Observations | 9352 | 9352 |
R-squared | 0.29 | 0.29 |
ATE | −0.017 (0.036) |
ATT | −0.215 * (0.120) |
ATU | 0.164 (0.165) |
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Wang, H.; Xu, S. Heterogeneity Effect of Corporate Financialization on Total Factor Productivity. Sustainability 2022, 14, 6577. https://doi.org/10.3390/su14116577
Wang H, Xu S. Heterogeneity Effect of Corporate Financialization on Total Factor Productivity. Sustainability. 2022; 14(11):6577. https://doi.org/10.3390/su14116577
Chicago/Turabian StyleWang, Hui, and Shu Xu. 2022. "Heterogeneity Effect of Corporate Financialization on Total Factor Productivity" Sustainability 14, no. 11: 6577. https://doi.org/10.3390/su14116577
APA StyleWang, H., & Xu, S. (2022). Heterogeneity Effect of Corporate Financialization on Total Factor Productivity. Sustainability, 14(11), 6577. https://doi.org/10.3390/su14116577