Breaking through the dilemma of enterprise soft budget constraints: an analysis based on the linkage effect of countercyclical regulation and institutional reform

Abstract

This paper focuses on the dilemma of enterprise soft budget constraints, deeply analyzes the current situation and harm of soft budget constraints in Chinese enterprises, and systematically elaborates on the impact mechanism and linkage effect of countercyclical adjustment and institutional reform on enterprise soft budget constraints. By combining theoretical analysis with practical exploration, strategies such as optimizing the countercyclical regulation policy system, deepening institutional reform, and strengthening the coordination between the two are proposed, aiming to provide theoretical basis and practical guidance for the government to formulate policies and enterprises to overcome difficulties, help enhance the market competitiveness of enterprises, and promote high-quality economic development.