Abstract
As an important tool connecting finance and fiscal, government guided funds are expected to be a significant means of alleviating corporate financing constraints. Based on annual data of listed firms on China's GEM from 2009 to 2023, we find that government guided funds can effectively alleviate corporate financing constraints. This is achieved not only through the "certification effect", which significantly reduces the degree of corporate information asymmetry, but also through the "political connection" resource effect, which promotes the relationship between banks and enterprises. The alleviation effect is more significant in the central and western regions, large-scale enterprises, and growing enterprises.
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