Capital allocation efficiency of SMEs: Global evidence
利用跨国数据，研究发现中小企业对增长机会的投资反应显著低于大企业，而信息更充分的金融市场能大幅提升中小企业的投资敏感性，为政策制定者改善中小企业效率提供全球视角。
Leveraging a comprehensive cross-country dataset, this study systematically examines whether and how small and midsize enterprises (SMEs) differ from large firms regarding capital allocation efficiency, which is an essential matter of economic efficiency. We find that SMEs exhibit significantly lower investment responsiveness to growth opportunities compared to large firms. This divergence is not driven by the differences in growth opportunities, cash flows or external dependence between small and large public firms. While we did not find evidence suggesting larger financial market size enhances SMEs’ capital allocation efficiency, we documented that a more informative financial market substantially improves SMEs’ investment sensitivity to growth opportunities. These findings provide important global policy insights specifically relevant for enhancing SMEs’ efficiency and growth.