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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Interest Rate Liberalization, Commercial Credit, and Investment Efficiency

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DOI: 10.25236/ICFIL.2019.026


Tang Manyun, and Zheng Liyun

Corresponding Author

Tang Manyun


This study investigates how interest rate liberalization influences investment efficiency through commercial credit. The interest rate liberalization process is measured by two indexes: the expert scoring index and the interest rate liberalization contribution assignment index. This study uses a sample of Shanghai and Shenzhen A-share non-financial listed companies for the period of 2003 to 2017 and builds a model to measure the impact of interest rate liberalization on commercial credit and investment efficiency, as well as the intermediation effect of commercial credit. The empirical results show that interest rate liberalization can improve the efficiency of enterprise investment and the use of commercial credit, and at the same time verifies the intermediary role of commercial credit. That is, interest rate liberalization can improve investment efficiency through business credit. The conclusion does not change with the robustness test.


Interest Rate Liberalization; Commercial Credit; Investment Efficiency