Capital Market Liberalization and Investment Efficiency: Evidence from China
利用中国金融改革，用双重差分模型发现股市开放通过抑制过度投资提升了企业投资效率，尤其对无外资持股、分析师关注低和民营企业效果更明显，信息透明和公司治理是重要传导渠道。
For this study, we adopted a recent financial reform in China and used a difference-in-difference model to investigate its impact on corporate investment efficiency. The results indicate that stock market liberalization has significantly improved corporate investment efficiency, primarily by restraining overinvestment. This effect exists chiefly in enterprises without former foreign ownership, those with low analyst coverage, and those that are privately owned. Further analysis reveals that improvements in corporate information disclosure and the corporate governance level are important transmission channels for improved efficiency. This study enriches research on the economic consequences of capital market liberalization and foreign investors’ governance channels, thereby providing implications for governments.