Anti-trust law, financing advantage and common prosperity within firms

Shen Yan, Chunxiao Mao and Wanrong Ma

Finance Research Letters, 2024, vol. 63, issue C

Abstract: The Anti-trust Law, which embodies the principles of an "active government" and an "efficient market", plays a significant role in shaping the initial income distribution of enterprises and realizing common prosperity. Based on the Chinese A-share listed firms, this study reveals that enforcing the Anti-trust Law impacts labour income, labour income share, and the income disparity within firms with higher monopolistic power. The improvement is primarily due to the Anti-trust Law's influence on the composition of factors, resulting in a more equitable and competitive market environment for debt and equity, reducing the financing advantage enjoyed by highly monopolistic enterprises.

Keywords: Anti-trust law; Financing advantage; Gounod competition model; Common prosperity (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s154461232400432x

DOI: 10.1016/j.frl.2024.105402

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