The Impact of Government Guidance Funds on Corporate Resource Allocation Efficiency
DOI:
https://doi.org/10.63313/EPP.9015Keywords:
Government Guidance Fund, Resource Allocation Efficiency, Risk-Taking Level, Financing ConstraintAbstract
In 2025, the General Office of the State Council issued the Guidelines on Promoting the High-Quality Development of Government Investment Funds, emphasizing clearer strategic positioning, coordinated spatial layout, and synergistic linkages between national and local funds to better leverage fiscal resources in supporting the real economy. As a key fiscal policy instrument, government guidance funds play an important role in optimizing industrial structure and fostering innovation, especially during the “15th Five-Year Plan” period, when technological innovation and industrial upgrading are central to high-quality development. Using A-share listed firms in Shanghai and Shenzhen from 2008 to 2023, this paper empirically examines the impact of government guidance funds on corporate resource allocation efficiency. The results show that government guidance funds significantly enhance firms’ resource allocation efficiency. Mechanism analysis indicates that this effect operates mainly through easing financing constraints and increasing firms’ risk-taking capacity. Heterogeneity analysis reveals stronger effects for technology-intensive firms, firms with higher information disclosure quality, those operating in less marketized regions, and firms located in eastern and central China. These findings suggest that improving the policy environment, guiding capital allocation, strengthening risk management mechanisms, and optimizing market and legal institutions are essential to further amplify the effectiveness of government guidance funds.
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