TITLE:
Supply-Side Structural Reform, Digital Economy and Corporate Default Risk
AUTHORS:
Xiaojie Jiang
KEYWORDS:
Supply-Side Structural Reform, Default Risk, Endogenous Financing, Exogenous Financing, Digital Economy
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.13 No.7,
July
20,
2023
ABSTRACT: In recent years, a lot of corporate defaults have had an impact on the
capital market. How to prevent corporate default risks has become an important
topic of concern for the academic community, enterprises and the government. We took China’s A-share listed companies
from 2012 to 2018 as a sample, and used the double difference method to
analyze the impact of supply-side structural reforms on corporate default
risks. We found that supply-side structural reforms have reduced the risk of
corporate default, and the inhibitory effect has gradually increased. In the
relationship between supply-side structural reforms and corporate default
risks, corporate financing capabilities have played an intermediary role.
Supply-side structural reforms can improve the company’s endogenous financing
capabilities, thereby reducing the risk of corporate default. However, we also
found that the mediating effect of a company’s exogenous financing capability
is not significant. At the same time, the regression results show that the
digital economy can play a regulatory role. It can not only actively regulate
the relationship between supply-side structural reforms and corporate default
risks, but also mediate the mediating effect of corporate endogenous financing
capabilities. The results of this article provide some evidence for the synergy
between supply-side structural reforms and the digital economy.