One-site reform of public service and corporate investment

Xinyi Wang, Ling Zhu and Mianmian Ji

Finance Research Letters, 2022, vol. 48, issue C

Abstract: This study examines whether and how administrative efficiency affects investment efficiency. Taking one-site reform of public service with the establishment of the prefecture's administrative approval centers as an exogenous shock, we conduct a difference-in-differences approach to investigate the causal effects of the administrative approval on investment efficiency in the context of China. We find that the administrative approval reform improves firms’ investment efficiency. Furthermore, the improvement of administrative approval efficiency is mainly concentrated in under-investment firms. After administrative approval reform, under-investment firms are more active in investment activities than their counterparts. Heterogeneity analysis shows that the above effect is particularly pronounced in private firms, highly financial constrained firms, and firms locate in regions with high social trust.

Keywords: Prefecture administrative efficiency; Investment efficiency; The establishment of prefecture's administrative approval bureau; China (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322002422
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002422

DOI: 10.1016/j.frl.2022.103002

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().