The Impact of the financial crisis on the value of A-share enterprises in China
DOI:
https://doi.org/10.54097/7h5fw903Keywords:
Executive Compensation, Financial Crisis, Financial Constraints, Firm ValueAbstract
Enterprise value creation is heavily influenced by the macroeconomic environment. As an extreme manifestation of environmental uncertainty, the financial crisis can be transmitted to the real economy through trade channels and financial channels, affecting firms' production, operation and strategic decision-making. Taking the 2008 financial crisis as a quasi-natural experiment, this paper selects A-share main board listed companies from 2004 to 2023 as samples and uses the difference-in-differences (DID) model for empirical research. Robustness checks are conducted through counterfactual analysis and replacing firm value variables. This paper further investigates whether the impacts differ among firms with different ownership types.The results show that the outbreak of the financial crisis significantly inhibits enterprise value creation. Financial constraints serve as one channel through which the financial crisis affects firm value, exerting a partial mediating effect. The inhibitory effect of the financial crisis on value creation is stronger in non-state-owned enterprises, and the mediating effect of financial constraints is also more significant.
Downloads
References
[1] Driver C, Muñoz-Bugarin J. Financial constraints on investment: Effects of firm size and the financial crisis[J]. Research in International Business and Finance, 2019, 47: 441-457. DOI: https://doi.org/10.1016/j.ribaf.2018.09.006
[2] Malmendier U, Tate G, Yan J. Overconfidence and early‐life experiences: the effect of managerial traits on corporate financial policies[J]. The Journal of finance, 2011, 66(5): 1687-1733. DOI: https://doi.org/10.1111/j.1540-6261.2011.01685.x
[3] Bruhn M, Love I. The real impact of improved access to finance: Evidence from Mexico[J]. The Journal of Finance, 2014, 69(3): 1347-1376. DOI: https://doi.org/10.1111/jofi.12091
[4] Corrado G, Corrado L. Inclusive finance for inclusive growth and development[J]. Current opinion in environmental sustainability, 2017, 24: 19-23. DOI: https://doi.org/10.1016/j.cosust.2017.01.013
[5] Hajek P, Henriques R.Mining corporate annual reports for intelligent detection of financial statement fraud A comparative study of machine learning methods[J].Knowledge-Based Systems, 2017,128:139-152. DOI: https://doi.org/10.1016/j.knosys.2017.05.001
[6] Frydman C, Papanikolaou D. In search of ideas: Technological innovation and executive pay inequality. Journal of Financial Economics. 2018, Vol. 130 (No. 1), p. 1-24. DOI: https://doi.org/10.1016/j.jfineco.2018.06.014
[7] Zhang Youtang, Chang Yuming. An Empirical Test of the Impact of Digital Finance on the Investment Efficiency of Technology-based Enterprises. Statistics and Decision. 2020, Vol. 36 (No. 16), p. 179-183.
[8] King R G, Levine R. Finance, entrepreneurship and growth[J]. Journal of Monetary economics, 1993, 32(3): 513-542. DOI: https://doi.org/10.1016/0304-3932(93)90028-E
[9] Leyshon A, Thrift N.Financial exclusion and the shifting boundaries of the financial system[J]. Environment and Planning A,1996,28(7):1150-1156. DOI: https://doi.org/10.1068/a281150
Downloads
Published
Issue
Section
License
Copyright (c) 2026 International Journal of World Economic Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
