Spillover Effects of the STAR Market Registration System on Main Board Enterprise Default Risk: Evidence from China

This study examines the spillover effects of China’s STAR Market registration reform on the default risk of Main Board firms operating in related industries. Using a panel dataset of A-share listed firms from 2014–2022 within a difference-in-differences analytical framework, the evidence indicates that the introduction of the registration-based IPO system generates favorable externalities by improving information transparency and strengthening operational stability, thereby reducing the default risk of peer enterprises listed on the main board. Further heterogeneity analyses demonstrate that this mitigating effect is more evident among firms with greater media exposure, higher institutional ownership, and lower levels of industry competition. These findings provide new insights into how capital market reforms influence corporate behavior and risk, enriching the literature on corporate default risk and institutional changes in emerging economies.