How does military-civilian integration development influence corporate financial constraints in China? Evidence based on quasi-natural experiments

This paper employs data of Chinese listed companies from 2009 to 2019 to determine the influence of the military-civilian integration strategy on corporate financial constraints. The study found the level of financial constraints of military enterprises to improve following the implementation of the military-civilian integration development strategy. Compared with private and small enterprises, the financial constraints of state-owned and large enterprises are more prominent, while the financial constraints of enterprises in the western region have increased more obvious. Further mechanism analysis revealed that the enhanced corporate financial constraints induced by the military-civilian integration are mainly reflected in the tightening of internal financing. Furthermore, we evaluated the total factor productivity changes of enterprises before and after the implementation of the military-civilian integration strategy. The results determine that the development of military-civilian integration facilitates the improvement of the total factor productivity of enterprises.