Market competition and firm behavior: A comprehensive study on the impact of antimonopoly law

Gang Li and Yongan Jiang

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: This study examines the impact of the antimonopoly law on corporate social responsibility (CSR) in China by analyzing the diverse effects on different types of enterprises and employee groups. The implementation of the law aimed to foster a fairer competitive market by dismantling monopolistic forces, particularly in their wage decisions. Utilizing a difference-in-differences (DID) approach, we find that the law significantly promotes CSR, especially in labor-intensive enterprises, which show a greater commitment to social responsibility compared with technology-intensive firms. The positive effect on ordinary employees’ wages is more pronounced than on managerial staff, highlighting increased wage fairness and transparency. These findings contribute to the understanding of how regulatory frameworks shape corporate behavior and social responsibility.

Keywords: Competitive strategy; Antimonopoly law; Firm behavior; Wage decision; Social responsibility (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324008729

DOI: 10.1016/j.frl.2024.105842

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