Institutional Investor Network Embedding and Firms’ Total Factor Productivity

Xiaofang Chen, Qin Li, Wei Cui and Yu Hu

Emerging Markets Finance and Trade, 2023, vol. 59, issue 6, 1896-1918

Abstract: The improvement of total factor productivity (TFP) can improve the production efficiency of enterprises and ultimately promote high-quality economic development. This paper takes Chinese A-share listed companies from 2007 to 2020 to examine the impact of institutional investor network embedding on Firms’ TFP. The study finds that institutional investor network embedding can promote the growth of Firms’ TFP. Institutional investor network embedding improves Firms’ TFP by improving information transparency and firms’ innovation level, alleviating agency problems, and playing an active role in supervision and governance. The positive impact of institutional investor network embedding on TFP is more significant among firms with low audit quality and corporate governance level. This conclusion holds true using alternative variables, changing the construction standard of institutional investor network, and using propensity score matching and the Heckman two-stage methods. This paper enriches the research on the influencing factors of Firms’ TFP and the economic consequences of institutional investor networks.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2022.2156282 (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:mes:emfitr:v:59:y:2023:i:6:p:1896-1918

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2022.2156282

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().