Can capital market supervision enhance corporate business credit?

Xinqian Li and Duo An

International Review of Financial Analysis, 2025, vol. 107, issue C

Abstract: This study used the difference-in-differences (DID) method to examine the correlation between capital market supervision, as indicated by the introduction of the New Security Law, and enterprises` business credit, utilizing data from listed companies between 2017 and 2023. The findings indicate that capital market supervision can effectively enhance enterprises` business credit. The positive effects are achieved through alleviating information asymmetry, improving social reputation and enhancing internal governance capability. Furthermore, the institutional investors significantly contributes to the positive effects.

Keywords: Capital market supervision; Business credit; The new security law (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:107:y:2025:i:c:s1057521925007379

DOI: 10.1016/j.irfa.2025.104650

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