IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v83y2024icp480-495.html
   My bibliography  Save this article

Does stock market liberalization promote entrepreneurship?

Author

Listed:
  • Jiang, Chun
  • Qiu, Yihan
  • Li, Xiao-Lin
  • Si, Deng-Kui

Abstract

This paper investigates the impact of stock market liberalization on entrepreneurship using non-financial firm-level data from 2007 to 2022. The results show that increased stock market liberalization promotes entrepreneurship by alleviating financial constraints, reducing corporate risk-taking, and enhancing corporate social responsibility. With a one percent increase in stock market liberalization, entrepreneurship improves by 8.60 percent. These findings remain robust even after replacing variables, changing model specifications, and addressing the endogeneity concerns. We also find the positive impact of stock market liberalization on entrepreneurship is more pronounced for firms with higher financing constraints, governance efficiency, industry competition, and eastern regions. This study underscores the significance of thoughtful financial market reforms in promoting entrepreneurship and ensuring high-quality economic development.

Suggested Citation

  • Jiang, Chun & Qiu, Yihan & Li, Xiao-Lin & Si, Deng-Kui, 2024. "Does stock market liberalization promote entrepreneurship?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 480-495.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:480-495
    DOI: 10.1016/j.eap.2024.06.027
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S031359262400167X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2024.06.027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:480-495. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.