Work

The Impact of Local Government Debt on Corporate Risk-taking

Year: 2024

Type: article

Abstract: As the scale of local government debt continues to expand, it is necessary to explore the impact of local government debt on corporate micro-behavior.Based on the data of A-share listed companies from 2011 to 2021, this paper empirically examines the impact and mechanism of local government debt on corporate risk-taking, and the above conclusions are justified after a series of robustness tests.It is found that local government debt reduces firm risk-taking and that financing constraints partially mediate this effect.Further analysis reveals that the risk-taking level of mature firms is significantly affected by the negative impact of local government debt. The research in this paper provides empirical evidence for mitigating local government debt risk.

Source: Frontiers in Business Economics and Management

DOI: 10.54097/tbjc2j02

Authors: Haonan Li, Yingnan Li

Institutions: Hangzhou Dianzi University, Tianjin Chengjian University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4402884909

FWCI:

Cites: 2

Cited by:

Related to: 10