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Can the Reform of the Commercial System Enhance the Resilience of Enterprises? Evidence Based on Quasi Natural Experiments

Author

Listed:
  • Hui Li

    (School of Law and Business, Wuhan Institute of Technology, No. 206 Guanggu 1st Road, Wuhan 430205, China)

  • Zhixuan Ke

    (School of Law and Business, Wuhan Institute of Technology, No. 206 Guanggu 1st Road, Wuhan 430205, China)

  • Jinghua Yan

    (School of Marxism, Central South University, No. 932 South Lushan Road, Changsha 410083, China)

Abstract

Enterprise resilience refers to the capacity of businesses to effectively respond to crises and achieve sustainable development over the long term. It serves as a crucial assurance for businesses to attain high-quality growth. The current worry among policy makers and academia revolves around the impact of commercial system change on the resilience of firms. This article examines the reform of the commercial system as a “quasi natural experiment” by comparing manually collected data on the reform with data on Chinese A-share listed companies from 2011 to 2022. It thoroughly analyses the effects and mechanisms of the reform on corporate resilience. The research findings suggest that implementing reforms in the commercial system can improve the ability of firms to withstand and recover from challenges. This is primarily accomplished by decreasing limitations on obtaining funding, minimising expenses associated with institutional transactions, and strengthening the capacity for technological innovation. This conclusion remains strong and reliable even after conducting a series of experiments to ensure its robustness and addressing any potential issues related to endogeneity. Furthermore, the reformation of the commercial system has a more potent impact on bolstering the resilience of private firms, large-scale enterprises, highly competitive enterprises, and high-tech enterprises. The research findings of this article have significant implications for advancing the reform of the commercial system, strengthening enterprise resilience, and achieving high-quality development of firms.

Suggested Citation

  • Hui Li & Zhixuan Ke & Jinghua Yan, 2024. "Can the Reform of the Commercial System Enhance the Resilience of Enterprises? Evidence Based on Quasi Natural Experiments," Sustainability, MDPI, vol. 16(17), pages 1-23, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7616-:d:1469949
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    References listed on IDEAS

    as
    1. Hui Li & Dongsheng Yu & Zhixuan Ke, 2023. "Commercial System Reform, Enterprise Green Innovation and Enterprise ESG Performance," Sustainability, MDPI, vol. 15(19), pages 1-19, October.
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    3. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Qiliang, Mao & Xianzhuang, Mao, 2024. "The shaping of inter-regional industrial linkages by institutional and cultural division in China: Characteristics and differences," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1113-1132.
    5. Paul Bishop, 2019. "Knowledge diversity and entrepreneurship following an economic crisis: an empirical study of regional resilience in Great Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(5-6), pages 496-515, May.
    6. Natalia Ortiz-de-Mandojana & Pratima Bansal, 2016. "The long-term benefits of organizational resilience through sustainable business practices," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1615-1631, August.
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    8. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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