The Cordial and Clean Relationship Between Government and Business and Corporate Risk: Empirical Evidences from China’s Listed Companies
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Abstract Based on the index of urban government-business Business Relations and the data of listed companies from 2017 to 2022, this paper examines the impact of cordial and clean government-business relationship on corporate risk and the underlying mechanism. The results show that the cordial and clean government-business relationship in cities can significantly reduce corporate risks, among which the reduction of corporate uncertainty perception, entrepreneurship incentives and corporate rent-seeking constraints play an important mediating role.Heterogeneity analysis indicates that the urban cordial and clean government-business relationship has a more significant risk reduction effect on types of enterprises that are far from the origin of business group culture, without government-enterprise connection, and frequently engage in shadow banking business. Further analysis reveals that the urban cordial and clean government-business relationship can significantly promote the digital transformation of companies, reduce the misallocation of enterprises resources, improve the ESG performance of companies and ultimately promote the high-quality development of enterprises. The conclusions provide empirical support and decision-making reference for optimizing the government’s business environment and promoting the high-quality development of China enterprises from the perspective of clarifying the boundaries between government and enterprises and building cordial and clean relationship between government and business.
PENG Bin,ZHU Shujin,LI Dan. The Cordial and Clean Relationship Between Government and Business and Corporate Risk: Empirical Evidences from China’s Listed Companies. Economic Survey, 2025, 42(4): 0107.
2025, Vol. 42 
