Impact of systematic transaction cost on enterprise competitive strategy and performance - research on Sany Heavy Industry's change of registered place

Weiguo Kang, Haoran Ji, Yuan Li and Hanwen Xu

International Journal of Economic Policy in Emerging Economies, 2025, vol. 22, issue 1, 91-112

Abstract: The market mechanism and formal system in China's economic system are not perfect, and the government has absolute authority in the allocation of resources and has the right to intervene in the operation of enterprises. Systematic transaction costs are different among regions, even among different enterprises in the same region. Taking the change of Sany Heavy Industry's registered place as an example, from the perspective of systematic transaction cost, we use difference in difference and financial index analysis to study the reasons why Sany Heavy Industry 'leaves home'. We find the explicit institutional transaction cost of Sany Heavy Industry rises significantly before the change of registered place, and the growth rate of explicit systematic transaction cost of Sany Heavy Industry slows down after the change. However, the implicit systematic transaction cost changes inversely, which affects the performance of enterprises. The research provides implications for the healthy development of the relationship between the government and private enterprises.

Keywords: systematic transaction cost; competitive strategy; relocation of headquarters; property right theory; enterprise performance. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=147479 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijepee:v:22:y:2025:i:1:p:91-112

Access Statistics for this article

More articles in International Journal of Economic Policy in Emerging Economies from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().