Research On The Impact Of Bailout Funds On Corporate Performance

The bailout fund is an emergency mechanism formed during the European debt crisis.In 2010,the European Union and the International Monetary Fund(IMF)put forward the "Bailout Fund",an innovative short-term emergency mechanism,in order to prevent the further expansion of the risk of debt default of EU countries.In the practice research of our country,the bailout fund is a special fund set up to relieve the equity pledge risk and liquidity problem of private enterprises.In early November 2018,at a symposium for private enterprises,President Xi Jinping,as a spokesman,pointed out that the relevant subjects should actively support the difficult enterprises in order to better alleviate the risk of equity pledge.In the case of policy release of good signals,since October 2018,local governments,social capital,securities firms and other main bodies have responded to the call to participate in the rescue action.This paper uses manual collection and database retrieval to obtain data,using private listed companies that implemented equity pledges in 2018-2019 as the research sample,using multiple linear regression and PSM propensity score matching method to explore the relationship between bailout fund and listed companies’operating performance.Based on the analysis results,it provides a reference for local government to the support of private enterprises.The results show that:(1)When private enterprises have equity pledge risk,government bailout fund will significantly reduce the performance of private listed companies,and the greater the bailout intensity,the worse the performance;(2)The negative correlation between local government bailout fund and corporate performance is more significant in the private listed companies with lower regional institutional environment level;(3)The negative correlation between local government bailout fund and corporate performance is more significant in private listed companies with lower internal control quality.The results show that bailout fund,as a macro control tool,if it is not well regulated and monitored,will instead become a booster for the transfer of interests of controlling shareholders,unable to play its "support" effect.The research contributions of this paper can be listed as follows:(1)The research theme of this paper is innovative.At present,the theoretical research on bailout fund is relatively scarce,and the corresponding empirical research on its operation effect is lacking.The results of this paper make up for the theoretical deficiencies of the current bailout fund and support further research by subsequent scholars.(2)This paper enriches the research scene of government-supported enterprises.Most of the previous research results are based on the perspective of the relationship between enterprises and the government.In the context of equity pledge,this paper further studies the relationship between government support and performance of private enterprises,providing a new idea for research in this field.