The impact of city financial ecology on firm financing efficiency: Evidence from China's strategic emerging industries

Based on the concept of bionics and the connotation of city financial ecology, this study constructs a 3-level and 27-indicator evaluation index system, including financial ecology growth, soil, and air. This study uses the entropy-TOPSIS model to weigh indicators objectively and evaluate the financial ecology of 343 China's prefecture-level cities during 2009-2016. This study uses the DEA-Tobit method to assess the financing efficiency of 4013 China's strategic emerging listed firms during 2010-2017 and runs random-effect Tobit panel regressions. Regression results suggest that a city's financial ecology overall has a positive effect on strategic emerging firms' financing efficiency. Therefore, the government should: improve the multi-tiered financial market system and encourage financial innovation; transform the economic growth model and optimize the industrial structure; establish an information-sharing mechanism and construct a social credit system.