Commercial reform and corporate investment efficiency: The roles of governmental administrative efficiency, information transparency, and regulatory oversight
研究中国商事改革如何通过提升政府行政效率、信息透明度和监管监督来增强企业投资效率，对非国有企业、市场分割严重地区和商业不确定性高的企业影响更显著。
ABSTRACT: Over the past decade, the Chinese government has reformed its commercial system to streamline administration, decentralize authority, and enhance regulation, services and oversight of commercial activities, which aims at improving the business environment and promoting sustainable economic development. Digital technologies have been integrated into the regulatory reform. We examine whether this reform affects corporate investment efficiency. Using a stacked difference-in-differences research design, we find that the reform enhances corporate investment efficiency. This enhancement is driven by more efficient government administration, increased transparency of commercial information, and stronger regulatory monitoring of commercial activities. The positive impact on investment efficiency is more pronounced for non-state-owned enterprises, firms in regions with higher market segmentation, and those facing greater commercial uncertainty. Further analysis reveals that the reform curbs both corporate underinvestment and overinvestment. Overall, our findings highlight the pivotal role of commercial reform in enhancing corporate investment efficiency, and provide valuable insights for policymakers worldwide in designing more effective regulatory frameworks to support business investment.