Has financial development benefited the performance of publicly traded cultural and creative firms? Evidence from China
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Using data over the 2008–2015 period, we examine the impact of financial development on the performance of publicly traded cultural and creative firms in China. Our results show that financial development, especially credit market growth, is associated with the improved performance of publicly traded cultural and creative firms. We also find that financial development exhibits differential impacts across the regions in China. Amongst financing channels, bank loans in the eastern region and private lending in the central and western regions are more effective in promoting the performance of publicly traded cultural and creative firms. Consequently, our findings have significant policy implications for the funding and financing practices of both financiers and cultural and creative industries. Policy measures that foster financial product innovation, diversify financing channels and ease financial difficulties should be undertaken to achieve sustainable growth in the cultural and creative industries.
KeywordsFinancial development Performance Financing channels Publicly traded cultural and creative firms China
JEL ClassificationG20 G32 Z10
The authors thank Maximilian Sauerland from the Leipzig University and Ishan Khatri from the Prairie View A. & M. University, who were curious enough to want to read and comment on this paper. Yan Li particularly thanks China Scholarship Council for the generous financial support of this study carried out in Monash University, Australia.
This study was funded by China Scholarship Council (Grant number 201606620071).
Compliance with ethical standards
Conflict of interest
Author Yan Li has received research grant from China Scholarship Council.
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