Journal of Finance and Economics
ISSN (Print): 2328-7284 ISSN (Online): 2328-7276 Website: http://www.sciepub.com/journal/jfe Editor-in-chief: Suman Banerjee
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Journal of Finance and Economics. 2018, 6(5), 173-177
DOI: 10.12691/jfe-6-5-2
Open AccessArticle

Empirical Study on Effect of Credit Constraints on Productivity of Firms in Growth Enterprise Market of China

Wenchuan Yang1,

1Business School of Sichuan University, Chengdu, China

Pub. Date: August 13, 2018

Cite this paper:
Wenchuan Yang. Empirical Study on Effect of Credit Constraints on Productivity of Firms in Growth Enterprise Market of China. Journal of Finance and Economics. 2018; 6(5):173-177. doi: 10.12691/jfe-6-5-2

Abstract

This paper investigates the effects that credit constraints have on firms’ productivity. The FGLS and OLS estimations are employed as our analysis tool. Then we use the unbalanced panel data of SMEs and innovation-oriented firms listed in the board of Growth Enterprise Market of China from 2001 to 2016 as the validation. In our analysis, the ownership of firm is also taken into consideration. The empirical results show that credit constraints don’t have significant influence on productivity, while the effect actually exists when considering ownership.

Keywords:
credit constraints firm productivity growth enterprise market FGLS method ownership

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