Page 27 - THE SOUTH CHINA BUSINESS JOURNAL
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eived loans decreased by 0.06 percentage points knew about the SCS through state media. The online
even when the term length of their loans remained survey also revealed that citizens with lower social
the same. trust tended to support the SCS more because
they believed that it could effectively promote
Expanded credit access boosts firm trustworthiness in society. For example, respondents
valuation, sales, profits. By analyzing additional reported a preference for avoiding peers with lower
nationwide online survey data, researchers again SCS scores: 62% indicated that they would either look
found that support for the SCS was higher if citizens at their low-score friend differently or hesitate to hold
a positive attitude toward them. Taken
together, such findings underscore
how citizens may support the SCS as
a means to maintain social order and
bolster trustworthiness.
New loans approved before and after participation in TPA Industry-wide efficiency gains
from TPA. Assessing the industry-
wide impact of TPA participation
by firms, the author first provides
evidence that more productive
firms were, in fact, more inclined to
participate in the TPA. As a result, the
preferential treatment by state banks
for TPA firms improved the quality of
credit allocation across each industry.
Such evidence implies that the TPA program
not only brought specific gains in the form
of improved credit access and loan terms
to borrowing firms, but may have also
generated industry-wide benefits. The
author cautions, however, that the analysis
only involved publicly-listed firms, which
comprise a relatively small proportion of
firms in any given industry.
Firm profit and market value before and after TPA program fosters positive
participation in TPA forms of favor exchange. The
author finds that the TPA program
fostered a favor-exchange relationship
between firms and governments
whereby local officials benefited from
the help of firms to achieve their
political goals (i.e., poverty alleviation)
instead of mere personal interests. In
return, firms obtained political influence
in the form of resource allocation.
Existing research generally focuses
on the darker side of favor exchanges
between firms and governments —
namely, diverting valuable resources
and undermining productivity —
which together lead to welfare losses.
This research, on the other hand,
underscores a positive example from
China’s anti-poverty program: corporate
participation in the TPA constituted a
successful example from a government
program that deployed the exchange of
favors strategically to realize a private
provision of public goods that also
enhanced social welfare.
SOUTH CHINA BUSINESS JOURNAL 24
even when the term length of their loans remained survey also revealed that citizens with lower social
the same. trust tended to support the SCS more because
they believed that it could effectively promote
Expanded credit access boosts firm trustworthiness in society. For example, respondents
valuation, sales, profits. By analyzing additional reported a preference for avoiding peers with lower
nationwide online survey data, researchers again SCS scores: 62% indicated that they would either look
found that support for the SCS was higher if citizens at their low-score friend differently or hesitate to hold
a positive attitude toward them. Taken
together, such findings underscore
how citizens may support the SCS as
a means to maintain social order and
bolster trustworthiness.
New loans approved before and after participation in TPA Industry-wide efficiency gains
from TPA. Assessing the industry-
wide impact of TPA participation
by firms, the author first provides
evidence that more productive
firms were, in fact, more inclined to
participate in the TPA. As a result, the
preferential treatment by state banks
for TPA firms improved the quality of
credit allocation across each industry.
Such evidence implies that the TPA program
not only brought specific gains in the form
of improved credit access and loan terms
to borrowing firms, but may have also
generated industry-wide benefits. The
author cautions, however, that the analysis
only involved publicly-listed firms, which
comprise a relatively small proportion of
firms in any given industry.
Firm profit and market value before and after TPA program fosters positive
participation in TPA forms of favor exchange. The
author finds that the TPA program
fostered a favor-exchange relationship
between firms and governments
whereby local officials benefited from
the help of firms to achieve their
political goals (i.e., poverty alleviation)
instead of mere personal interests. In
return, firms obtained political influence
in the form of resource allocation.
Existing research generally focuses
on the darker side of favor exchanges
between firms and governments —
namely, diverting valuable resources
and undermining productivity —
which together lead to welfare losses.
This research, on the other hand,
underscores a positive example from
China’s anti-poverty program: corporate
participation in the TPA constituted a
successful example from a government
program that deployed the exchange of
favors strategically to realize a private
provision of public goods that also
enhanced social welfare.
SOUTH CHINA BUSINESS JOURNAL 24
