A Difference-in-Difference Study Evaluating the Effect of High-speed Rail Opening on Financing Constraints of Enterprises’ Construction Projects

DOI

10.2991/978-94-6463-042-8_209How to use a DOI?

Keywords

Financing Constraints of Construction Projects; High-speed Rail Opening; Differences-in-Differences

Abstract

Taking the opening of high-speed railway as an exogenous event, this paper uses the panel data of the opening information of high-speed railway and the formation of A-share listed companies in cities of Zhejiang Province from 2010 to 2019, in order to investigate the impact of the opening of high-speed rail on financing constraints of local enterprises’ construction projects from a micro perspective. This paper adopts Differences-in-Differences as regression model, which is an appropriate method to evaluate policy effects. At the same time, referring to Kaplan and Zingales (1997), this paper uses mathematical model to construct KZ index as a measure index to measure financing constraints of enterprise construction projects. The study found that the opening of high-speed rail significantly reduced the degree of financing constraints for local companies. One of its mechanisms is that the opening of high-speed rail promotes information flow and alleviates information asymmetry between investors and enterprise management. To ensure the robustness of the empirical results, a placebo test was used. By assuming a one-year postponement, the correlation was tested again, eventually ruling out the effects of other potentially disruptive events. The conclusion of this paper may provide suggestions for supporting the economic benefits and planning of high-speed railway network.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yufei Zhang
PY  - 2022
DA  - 2022/12/29
TI  - A Difference-in-Difference Study Evaluating the Effect of High-speed Rail Opening on Financing Constraints of Enterprises’ Construction Projects
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 1438
EP  - 1443
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_209
DO  - 10.2991/978-94-6463-042-8_209
ID  - Zhang2022
ER  -