Research on the Impact of Patient Capital on Firm Total Factor Productivity
DOI:
https://doi.org/10.54097/97vn5r52Keywords:
Patient Capital, TFP, Digital Technological InnovationAbstract
Against the backdrop of China’s pursuit of high-quality economic development, patient capital—characterized by its long-term orientation and stability—is regarded as a crucial force for overcoming corporate innovation bottlenecks and enhancing total factor productivity (TFP). This study examines this relationship using 14 years of data from A-share listed companies in China. The findings reveal that: (1) patient capital significantly promotes TFP growth; (2) digital technological innovation serves as an important mediating channel; and (3) the strength and nature of this relationship vary significantly across different contextual conditions, such as firm market power and life cycle stage. The paper recommends improving the institutional design of capital markets and optimizing corporate information disclosure and governance environments to better leverage patient capital as a strategic enabler of new quality productive forces and high-quality development.
Downloads
References
[1] Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
[2] Deeg, R., & Hardie, I. (2016). What is patient capital and who supplies it? Socio-Economic Review, 14(4), 623–647.
[3] Di, C. Z., Xu, H. Y., Bai, X. J., et al. (2025). Long-term orientation as the core principle: How patient capital builds corporate resilience. Friends of Accounting. Advance online publication.
[4] Ding, R. Z., & Ma, P. T. (2025). Theoretical logic, mechanisms, and practical pathways of patient capital empowering new quality productive forces. Economic Dynamics, (8), 5–18.
[5] He, C., Gao, H. P., & Lin, P. (2024). Developing new quality productive forces with patient capital: East-West divergence, dual attributes, and practical exploration. China Economic Issues, (6), 29–42.
[6] Hu, H. F., Zhao, J. L., & Dou, B. (2025). Patient capital and high-quality development of strategic emerging industries. Journal of Shanxi University of Finance and Economics, 47(7), 72–86.
[7] Huang, L. L. (2023). A study on the impact of Will Semiconductor’s vertical integration M&A on performance from the perspective of synergy (Master’s thesis). Guangxi University of Finance and Economics.
[8] Jeanneney, S. G., Liang, Z., & Hu, P. (2006). Financial development, economic efficiency and productivity growth: Evidence from China. The Developing Economies, 44(1), 27–52.
[9] Jiang, H., & Ning, Z. Y. (2025). Does bank digital transformation affect corporate risk-taking? Jinan Journal (Philosophy & Social Sciences), 47(8), 127–149.
[10] Jiang, Z. Y., & Wu, F. X. (2024). Patient capital, digital economy, and innovation efficiency: Empirical evidence from A-share manufacturing firms. Journal of Hohai University (Philosophy and Social Sciences), 26(2), 121–133.
[11] Jin, X. Y., Li, T., Zhang, M. R., et al. (2025). Enterprise adoption of digital technologies and total factor productivity enhancement. Economic Perspectives, (9), 59–77.
[12] Ju, J., & Chen, W. B. (2025). Practice and reflections on audit rectification of state-owned asset management: Based on 110 provincial audit reports from 2020–2023. Accounting Monthly, 46(13), 77–83.
[13] Li, J. L., & Dong, J. C. (2024). Structural characteristics, optimization potential, and pathways of Chinese modernization. Economist, (10), 44–53.
[14] Li, S. X., Liu, X., & Sun, H. L. (2024). Promoting new quality productive forces with patient capital: Characteristics, current challenges, and cultivation pathways. Research on Financial and Economic Issues, (10), 14–28.
[15] Li, Z., & Liang, C. (2025). Can wage increases simultaneously achieve common prosperity and help overcome the “middle-income trap”? Macroeconomic Research, (3), 63–80.
[16] Lu, Y. T., & Tian, Y. F. (2022). The mediating effect of internal control on the competitive advantage of state-owned enterprises. Enterprise Economy, 41(2), 69–79.
[17] Luo, J., Zhang, J. J., & Li, K. (2023). How does digital technological innovation drive total factor productivity in manufacturing firms? Evidence from listed company patent data. Journal of Financial Research, (2), 95–109.
[18] Meng, W. F., & Wu, Q. (2025). Patient capital empowering corporate green transformation: Theoretical analysis and empirical evidence. Jianghan Tribune, (5), 13–25.
[19] Pang, J. L., Zhang, G. Y., & Cai, R. T. (2025). The impact of patient capital on high-quality development of private enterprises: The moderating role of government subsidies. Regional Financial Research. Advance online publication.
[20] Qiu, R., Tian, Z. H., Mai, J. P., et al. (2024). Patient capital and the enhancement of firm total factor productivity. Securities Market Herald, (12), 3–12.
[21] Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5, Part 2), S71–S102.
[22] Schumpeter, J. A. (1942). Capitalism, socialism and democracy. Harper & Brothers.
[23] Shi, G. F., Chen, Q., & Wang, J. Y. (2024). The influence mechanism of regional financial risk in China from an asymmetric information perspective. Commercial Research, (1), 38–48.
[24] Sun, G. (2022). Innovation ecosystem and patent growth of listed firms: Micro-evidence from the “High-Tech Certification” policy. Economic System Reform, (3), 97–103.
[25] Sun, Q. (2025). Government investment funds empowering the development of new quality productive forces. China Finance, (12), 75–76.
[26] Wang, X. B., Xu, T. J., & Yan, X. Q. (2025). Inclusive SME credit supply and SME entry: Evidence from the establishment of specialized SME bank branches. Journal of Financial Research, (12), 95–113.
[27] Wu, Y. L., & Liang, J. C. (2025). Digital technological innovation empowering high-quality development of commerce and trade circulation: Mechanisms and empirical validation. Journal of Commercial Economics Research, (12), 104–108.
[28] Xie, T. T., & Lu, K. (2025). Patient capital and digital-real integration: A perspective on cultivating new quality productive forces. Financial Theory and Practice, (9), 105–118.
[29] Xu, S. H., & Sun, N. H. (2025). Patient capital, critical digital technological innovation, and credit environment: Evidence from A-share digital enterprises. Xinjiang Social Sciences, (4), 21–33+174.
[30] Xu, Y. J., Shen, Y., & Hu, J. (2022). Import promotion policies, market-based environmental regulation, and corporate innovation: A policy synergy perspective. Journal of Shanxi University of Finance and Economics, 44(2), 76–90.
[31] Xue, L., Li, M. Y., & Qiu, M. X. (2025). The income distribution effects of interest rate liberalization reform. Friends of Accounting, (9), 131–138.
[32] Xue, Y., & Zhao, W. K. (2024). Technology convergence innovation, knowledge spillovers, and firm total factor productivity. Commercial Research, (2), 133–142.
[33] Yang, G. Y., & Tang, L. (2025). The impact of patient capital on corporate resilience. Finance & Economics, (3), 15–29.
[34] Yao, X., Cai, C. Y., & Qin, Z. L. (2025). How does aligning with international high-standard rules drive efficiency transformation in domestic enterprises? The Journal of Quantitative & Technical Economics. Advance online publication.
[35] Ye, B. (2025). The value of patient capital: A corporate resilience perspective. Journal of Wuhan University of Science and Technology (Social Science Edition). Advance online publication.
[36] Yi, X. Q., Liu, R., Li, D., et al. (2025). Strengthening the foundation: How patient capital reinforces corporate resilience. Accounting Monthly, 46(18), 33–40.
[37] Yu, Y., Jian, X., & Zhang, Z. H. (2025). Can blockchain effectively mitigate carbon dependence in manufacturing firms? Systems Engineering—Theory & Practice. Advance online publication.
[38] Yuan, C., Xiao, T. S., Geng, C. X., et al. (2021). Digital transformation and firm specialization: Specialization or vertical integration? China Industrial Economics, (9), 137–155.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Academic Journal of Management and Social Sciences
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
