Does China’s Selective Industrial Policy Enhance the Risk-Taking of Corporations?

Abstract

Moderately increasing risk-taking can promote the high-quality development of enterprises. This paper uses the difference-in-differences method to examine the influence of the selective industrial policy on enterprise risk-taking using the qualification recognition policy of high-tech enterprises as a quasi-natural experiment. The results show that selective industrial policy plays a significant role in promoting enterprise risk-taking. Specifically, such policies significantly affect the risk-taking level of listed and highly rated enterprises. Further research shows that financing constraints are the main channel for the recognition policy of the high-tech qualification industry to enhance the level of enterprise risk-taking.