Open Access Journal Article

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

by Ling Ye a  and  Yuxi Sun b,*
School of Accounting, Nanjing University of Finance and Economics, Nanjing, China
Department of Business AdminiCollege of Arts and Sciences, Boston University, Boston, U.S.
Author to whom correspondence should be addressed.
REA  2023, 14; 2(2), 14;
Received: 31 May 2023 / Accepted: 9 June 2023 / Published Online: 22 August 2023


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.

Copyright: © 2023 by Ye and Sun. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Ye, L.; Sun, Y. COVID-19, Financing Constraints and Total Factor Productivity of Enerprises. Review of Economic Assessment, 2023, 2, 14.
AMA Style
Ye L, Sun Y. COVID-19, Financing Constraints and Total Factor Productivity of Enerprises. Review of Economic Assessment; 2023, 2(2):14.
Chicago/Turabian Style
Ye, Ling; Sun, Yuxi 2023. "COVID-19, Financing Constraints and Total Factor Productivity of Enerprises" Review of Economic Assessment 2, no.2:14.
APA style
Ye, L., & Sun, Y. (2023). COVID-19, Financing Constraints and Total Factor Productivity of Enerprises. Review of Economic Assessment, 2(2), 14.

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