Against the backdrop of high uncertainty in the economic environment, corporate resilience is not only a key guarantee for enterprises to build their own competitive advantages, but also a vital cornerstone for China’s economy to achieve high-quality development. Sampling from China’s A-share listed companies ranging from 2009 to 2023, this paper employs the Difference-in-Differences (DID) model to examine the association between the Fair Competition Review System (FCRS) and corporate resilience. The empirical results reveal that the application of the FCRS can significantly improve corporate resilience. A mechanism analysis indicates that the FCRS enhances corporate resilience by alleviating credit misallocation and reducing agency costs. Further analysis suggests that the positive impact of the FCRS on corporate resilience is more remarkable in samples with low market competition intensity, high rule-of-law levels, and eastern and central regions. The findings not only provide a practicable path for the deep combination of competition policy and corporate resilience, but also offer useful implications for promoting corporate sustainable development.
Wu et al. (Fri,) studied this question.