Research on the Impact of Patient Capital on Firm Total Factor Productivity

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.