Total Factor Productivity Of Enterprises Research Articles

Digital Transformation and Total Factor Productivity of Enterprises

Digital transformation is not only a necessary path to promote enterprise transformation and upgrading, but also one of the key paths to bridge the digital divide and achieve sustainable development. This article is based on the data of listed companies in coastal areas of China from 2011 to 2022, constructs a digital transformation index, and, on the basis of alleviating endogeneity issues, empirically finds that digital transformation has a significant positive impact on total factor productivity of enterprises through a series of robustness tests. Among them, digital transformation mainly promotes the improvement of total factor productivity through various means such as expanding the path of enterprise innovation and development, effectively constructing human capital structure, and enhancing resource allocation efficiency. The research conclusion of this article provides data support and analytical perspective for the productivity effect of digital transformation, and also provides policy reference for expanding new paths.

Corporate ESG and total factor productivity: Will the fulfillment of social responsibility sacrifice productivity?

With the increasing prominence of climate and energy issues, enterprises, as the micro-subjects of economic activities, need to pay attention to environmental responsibility to promote sustainable and high-quality economic development. However, one of the crucial controversies is whether enterprises will sacrifice efficiency to fulfill their environmental responsibilities. To try our best to answer the controversy, this paper explores the impact of ESG on total factor productivity and its mechanism. The research conclusion shows that Chinese enterprises fulfilling ESG responsibilities can improve staff efficiency, reduce financing costs, ease financing constraints, and increase innovation investment, thus effectively improving total factor productivity. Compared to non-state-owned enterprises, this effect is more significant in state-owned enterprises. In addition, the promotion of ESG construction on the total factor productivity of enterprises also presents specific acceleration characteristics. This shows that in the socialist market economy environment, there is an obvious "social responsibility dividend" in the implementation of the ESG concept by Chinese enterprises, which is helpful to enhance their long-term value and realize a win-win of social value and commercial value. The conclusions of this study help deal correctly with the relationship between business value and social value of enterprises and provide inspiration for promoting healthy and sustainable economic development.

Environmental and social governance performance and enterprise total factor productivity

AbstractWith the popularity of both green development and sustainable investment concepts, evaluation of environmental performance, social responsibility and corporate governance (ESG) is the way for enterprises to protect the environment and, at the same time, interact with stakeholders. This paper first analyses how ESG influences corporate total factor productivity (TFP), then, using A‐share listed company data from 2009 to 2021, conducts an empirical test proving that ESG greatly boosts TFP. Examination of the intermediate mechanism reveals that ESG can improve TFP by raising R&D investment, enhancing the attention of stakeholders, and increasing internal control capabilities. The heterogeneity study shows that, for state‐owned firms, non‐polluting industries, and small‐scale and low‐market degree enterprises, ESG enhances TFP more. Further analysis indicates that ESG uncertainty and ESG catering behaviour will weaken the fostering impact, but environmental regulation has a beneficial regulatory role.

The spillover effect of export on total factor productivity of enterprises: panel data approach in Vietnam

PurposeThis study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication.Design/methodology/approachThis study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019.FindingsThe results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels.Research limitations/implicationsThis study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage.Practical implicationsThe study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts.Originality/valueThis study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373

Does the Water Resource Tax Reform Bring Positive Effects to Green Innovation and Productivity in High Water-Consuming Enterprises?

Water resources are a fundamental natural and strategic economic resource and are closely related to high-quality economic and societal development. This paper uses the pilot implementation of the water resource tax reform to explore the impact of that reform on the green innovation and total factor productivity of enterprises. The study sample includes data for high water-consuming A-share listed enterprises in Shenzhen and Shanghai, China, from 2007 to 2021; the double-difference method was used for the analysis. Study findings indicate that replacing water resource fees with taxes significantly improves the green innovation level and total factor productivity of enterprises. Green innovation has a significant partial mediating effect between the water resource tax reform and total factor productivity. The water resource tax reform promotes green innovation in enterprises, enhancing total factor productivity. When considering different types of enterprise property rights, the economic effect of the water resource tax reform is more pronounced in non-state-owned enterprises, compared to state-owned enterprises. This paper provides empirical evidence for expanding the pilot scope of the water resource tax reform.

External pay gap of R&D personnel and total factor productivity of enterprises

This study examines the relationship between the external pay gap of research and development (R&D) personnel and the total factor productivity (TFP) of enterprises. The results show that the external pay gap of R&D personnel significantly improves the enterprises' TFP, while innovation output, innovation efficiency, and human capital quality play mediating roles in the effect. Furthermore, we find that the promotion effect of the external pay gap of R&D personnel is more significant in non-state-owned firms, firms in industries with high competition, and firms in regions with high economic development. In addition, the internal pay gap has a moderating effect on the effect.

Digital transformation and total factor productivity of enterprises: evidence from China

Digital transformation and total factor productivity of enterprises: evidence from China

The Impact of MLF Collateral Expansion Policy on Total Factor Productivity of Polluting Firms

Since the reform and opening up, China's economy has developed rapidly and has become a global economic powerhouse. However, for a long time, the economic development model has been rough, resource consumption is high, and growth relies heavily on heavy industry, which is not sustainable.In 2018, China's central bank proposed to incorporate green credit into the qualified collateral framework, an initiative that has the dual function of resource allocation and environmental regulation. Considering that polluting enterprises are more susceptible to this policy, the article chooses polluting enterprises as the research object, quasi-natural experiments based on the MLF collateral expansion policy introduced in June 2018, and adopts a double difference model to analyze whether the new policy can enhance the total factor productivity of enterprises. The results of the study show that the MLF collateral expansion policy can significantly enhance the total factor productivity of heavy pollution enterprises. Finally, based on the obtained results, this paper puts forward targeted recommendations.

Industrial Chain Correlation and Total Factor Productivity

 As a matter of fact, the total factor productivity, as a crucial metric for measuring the speed and quality of output in enterprises, plays a vital role in optimizing resource allocation and fostering the synergistic development of industries especially in recent years. With this in mind, this paper studies and investigates how the degree of industrial chain correlation affects the total factor productivity. By using the methods of benchmark regression analysis, robustness test, heterogeneity analysis and quantile regression, the empirical findings indicate that the impact of industrial chain connectivity on enterprise total factor productivity follows a "U"-shaped distribution and remains robust. Furthermore, its influence varies among enterprises with different ownership structures as well as production factor intensities according to the analysis. At the same time, the panel quantile regression reveals that the effect of industrial chain connectivity on enterprise total factor productivity differs across firms with varying levels of total factor productivity.

Accountability audit of natural resources and total factor productivity—Evidence based on Chinese listed companies

Based on a natural event, namely a pilot accountability audit of natural resources conducted by local officials in 2014, this study empirically investigates the impact of the pilot on the total factor productivity (TFP) of enterprises. The study utilizes the Differences-in-Differences model with an observation window spanning from 2012 to 2015. The findings indicate a significant reduction in the total factor productivity of enterprises in the pilot area due to the implementation of the pilot program. The study identifies that this impact is primarily driven by increased production costs and decreased investment. Further analysis reveals heterogeneity in the effects, with regions characterized by low levels of economic development, distortions in the production element market, low competition in industries, heavy asset-intensive industries, large enterprises, and absolute holding enterprises experiencing a more pronounced impact of the audit on total factor productivity. Overall, this study sheds light on the influence of accountability audits of natural resources on the real economy and offers valuable insights for policymakers.

The Impact of ESG Performance on Total Factor Productivity of Enterprises -- Based on Signal Transmission Theory

The Impact of ESG Performance on Total Factor Productivity of Enterprises -- Based on Signal Transmission Theory

A Study of the Impact of Government Subsidies on the Total Factor Productivity of Enterprises

A Study of the Impact of Government Subsidies on the Total Factor Productivity of Enterprises

Digital Transformation and Green Total Factor Productivity of Chinese Listed Companies: Evidence from Academic Perspective

Digital transformation and green total factor productivity are important measures to implement the dual carbon strategy and promote the high-quality development of enterprises. Based on micro-level data from listed companies from 2011 to 2021 and matched with text data containing digitalization keywords, this article examines the effects of corporate digital transformation on green total factor productivity. The study found that digital transformation significantly improves the green total factor productivity of enterprises, and this result holds even after robustness tests and the inclusion of control variables such as variable substitution, fixed effects interaction, double-cluster robust standard errors, and added control variables. The research in this article enriches the study on the economic consequences of digital transformation for real-world enterprises and the factors influencing green total factor productivity of enterprises. It provides valuable references for driving enterprises from traditional factor-driven to innovation-driven approaches based on green orientation.

Research on the impact of manufacturing virtual agglomeration on green total factor productivity of enterprises under the Sustainable Development Goals.

Virtual agglomeration of manufacturing has become a new driving force for improving the green total factor productivity of enterprises, which is of great significance in achieving the sustainable development of manufacturing enterprises and the construction of manufacturing power. This paper clarifies the connotation, model, and characteristics of manufacturing virtual agglomeration. Based on the five dimensions of virtual agglomeration platform, digitization of subjects, data center, virtual cooperation network, and logistics service, this paper constructs an index system for the manufacturing virtual agglomeration. Entropy weight method was used to measure the level of manufacturing virtual agglomeration from 2012 to 2021. Furthermore, this paper analyzes and tests the influence mechanism of manufacturing virtual agglomeration on the green total factor productivity of enterprises. This paper finds that manufacturing virtual agglomeration improves the green total factor productivity of enterprises, which shows a nonlinear relationship. The mechanism test results show that manufacturing virtual agglomeration improves the green total factor productivity of enterprises by accelerating green technology innovation, forming a scale economy, and reducing transaction costs. The heterogeneity analysis shows that the promotion effect of virtual agglomeration in manufacturing on the green total factor productivity of enterprises is affected by the property rights and scale of the enterprise.

Does the performance of financial policy improve the total factor productivity in the competition?——Empirical evidence from Chinese listed companies

China's state-owned enterprises have obvious advantages in financing due to factors such as administrative industry monopoly and government subsidy bias, resulting in a significant imbalance between state-owned enterprises and private enterprises in the allocation of social capital in China. This study focused on the impact of resource allocation in the financial field on the total factor productivity of enterprises, and conducted an empirical analysis with the 2020 novel coronavirus outbreak as the critical public health event, and found that the competitive neutrality of financial policy had a significant positive effect on improving the total factor productivity of Chinese enterprises.

The influence of non‐financial enterprises' financialization on total factor productivity of enterprises: Promotion or inhibition?

AbstractIn recent years, the increasing trend of financialization of non‐financial enterprises and the improvement of total factor productivity (TFP) have attracted extensive attention. The research sample for this study covers non‐financial firms listed on the Shanghai and Shenzhen stock exchanges from 2008 to 2020. Then an econometric regression model is built to examine the impact of financialization of non‐financial enterprises on enterprises' TFP. The mediation effect model is used to investigate the mechanisms of non‐financial enterprises' financialization (NFEF) on TFP. The heterogeneity in investment efficiency, property rights and political affiliation is further discussed. The findings show that the NFEF has a considerable negative influence on enterprises' TFP, which still stands after endogenous treatment and a series of robustness tests. Moreover, NFEF significantly inhibits TFP by crowding out R&D investment and significantly promotes TFP by alleviating financing restrictions. Both the ‘crowding‐out effect’ and ‘reservoir effect’ of financialization of non‐financial enterprises are verified, and the former is greater. The influence of NFEF on TFP has the heterogeneity in investment efficiency and political affiliation, but the heterogeneity in property rights is insignificant.

CEO stability and enterprise total factor productivity from the perspective of dual carbon: a mechanism test based on green innovation

PurposeThrough this study, the aim is to provide reference for the improvement of CEO related theories, the reform of internal governance mechanisms and compensation systems in enterprises, and ultimately contribute to economic and social development and the achievement of dual carbon goals.Design/methodology/approachIn the context of accelerating the implementation of the “dual carbon” goal and promoting sustainable economic and social development, this paper builds a panel data model based on the panel data of 31 provinces in China from 2011 to 2019 to empirically test the impact of CEO stability on green innovation and total factor productivity of enterprises.FindingsThe results show that CEO stability has a positive role in promoting enterprise total factor productivity and green innovation and enterprise green innovation also has a positive role in promoting total factor productivity; Heterogeneity testing found that CEO stability has no significant impact on green innovation in state-owned enterprises. Corporate green innovation has a partial mesomeric effect between CEO stability and total factor productivity; The proportion of independent directors has a negative moderating effect on CEO stability and corporate green innovation, while equity incentive has a positive moderating effect on the relationship between CEO stability, corporate total factor productivity and green innovation.Originality/valueFirst, it develops the research on CEO stability and its economic consequences. Second, it expands the impact of CEO stability on heterogeneous enterprises. Third, provides new ideas for the reform of internal governance mechanism and salary system of enterprises.

COVID-19, Financing Constraints and Total Factor Productivity of Enerprises

<p class="MsoNormal" style="text-align: justify;">As the COVID-19 epidemic swept the world in early 2020, it is worth watching how it affects the total factor productivity of enterprises. Based on the theory of information asymmetry and the data of A-share listed companies from 2014 to 2021, this paper conducts an empirical study on the relationship between COVID-19 and the total factor productivity of enterprises. The results show that the impact of the COVID-19 epidemic can significantly reduce the total factor productivity of enterprises, and the conclusion is still true after a series of robustness tests. Taking the financing constraint as an intervening variable, it clearly reveals a transmission mechanism, that is to say, the impact of the COVID-19 epidemic exacerbates the financing constraint of the enterprise, thus it makes the total factor productivity of the enterprise reduce. It is further found that the above effects are more obvious for small and medium-sized enterprises and non-intelligent enterprises. Based on this, the government should implement some active economic development policies to create a free, relaxed and orderly market environment for enterprise financing. At the same time, enterprises should not only pay attention to digital and intelligent development, and transform into technology-intensive enterprises, but also strengthen the awareness of worry. Enterprises should store "more grain" for preparing for the cold winter.</p>

Digital transformation and total factor productivity

This study investigates the influence of digital transformation on total factor productivity of enterprises, along with the mechanisms driving this impact. The results suggest that innovation in digital technology can increase total factor productivity. Heterogeneity analysis reveals that this effect is particularly favorable in state-owned enterprises. Moreover, the study of mechanisms uncovers that digital transformation can enhance corporate innovation. Our findings provide timely policy implications for governments concerning digital transformation.

Does the implementation of green finance regulation promote the high-quality development of enterprises? Evidence from a quasi-natural experiment in China.

The improvement of enterprise total factor productivity and labor productivity is the micro-embodiment of high-quality economic development. Green finance relies on the dual functions of resource allocation and environmental regulation to guide enterprises to adjust their mode of operation through incentive and restraint mechanisms, attach importance to energy conservation and environmental protection, and guide enterprises to develop with high quality. Taking the construction of the green financial supervision system in 2016 as a quasi-natural experiment, we constructed a difference-in-difference model to investigate the impact and mechanism of green finance on the high-quality development of enterprises, based on the panel data of Chinese A-share listed companies from 2006 to 2020. The results show that the implementation of green finance effectively promotes the high-quality development of enterprises. This promotion effect is heterogeneous from perspectives of enterprise-specific characteristics, executive education background, and environmental regulation intensity. The influence mechanisms mainly rely on tightening financial constraints, upgrading the level of green technology innovation, and improving the quality of internal control. These findings provide an important decision-making reference for better implementing green finance policies and promoting high-quality economic development under the green and low-carbon concept and carbon peak carbon neutrality goals.