Action beyond the sky high: Capital structure adjustment speed of Chinese space firms

Date

2026

Authors

Guo, F.
Xu, L.
Li, B.
Sun, J.
Dai, Z.

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Journal article

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China Economic Review, 2026; 95:102634-1-102634-19

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Fei Guo, Lei Xu, Bin Li, Jiawei Sun, Zixuan Dai

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Abstract

Space competition has been escalating in recent decades. The 2015 commercialization of Chinese space sector provides a quasi-natural experiment. We establish a positive link between commercialization and capital structure adjustment speed of space firms, especially when their capital structures are below target levels. Such a link is more pronounced among non-state-owned enterprises (non-SOEs), firms in regions of stronger intellectual property protection or better financial inclusion. Improved access to financial resources at lower cost, public scrutiny, and internal motivation underlie the impact. Furthermore, space commercialization enhances firms’ innovation performance and total factor productivity (TFP) by accelerating their capital structure adjustment, thereby promoting the development of the real economy. This study may enrich discussion over commercialization of the space sector and effectiveness of China’s market economy.

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Available online 7 December 2025

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© 2025 Elsevier Inc. All rights are reserved, including those for text and data mining, AI training, and similar technologies.

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