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Anti-trust law, financing advantage and common prosperity within firms

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  • Yan, Shen
  • Mao, Chunxiao
  • Ma, Wanrong

Abstract

The Anti-trust Law, which embodies the principles of an "active government" and an "efficient market", plays a significant role in shaping the initial income distribution of enterprises and realizing common prosperity. Based on the Chinese A-share listed firms, this study reveals that enforcing the Anti-trust Law impacts labour income, labour income share, and the income disparity within firms with higher monopolistic power. The improvement is primarily due to the Anti-trust Law's influence on the composition of factors, resulting in a more equitable and competitive market environment for debt and equity, reducing the financing advantage enjoyed by highly monopolistic enterprises.

Suggested Citation

  • Yan, Shen & Mao, Chunxiao & Ma, Wanrong, 2024. "Anti-trust law, financing advantage and common prosperity within firms," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s154461232400432x
    DOI: 10.1016/j.frl.2024.105402
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    References listed on IDEAS

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    1. Su, Yiyi & Song, Jialin & Lu, Ying & Fan, Di & Yang, Miles, 2023. "Economic poverty, common prosperity, and underdog entrepreneurship," Journal of Business Research, Elsevier, vol. 165(C).
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    3. Nanak Kakwani & Xiaobing Wang & Ning Xue & Peng Zhan, 2022. "Growth and Common Prosperity in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(1), pages 28-57, January.
    4. Liu, Yang & Dong, Xiucheng & Dong, Kangyin, 2023. "Pathway to prosperity? The impact of low-carbon energy transition on China's common prosperity," Energy Economics, Elsevier, vol. 124(C).
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    Cited by:

    1. Yu, Shengsheng & Jin, Hang & Jin, Chunhua & Huang, Jian & Li, Jianliang & Wang, Bin, 2025. "How is merchant gang culture conducive to increasing enterprises’ common prosperity?," Finance Research Letters, Elsevier, vol. 76(C).
    2. Hu, Wentao & Zou, Rui & Liu, Tie, 2025. "How does the anti-monopoly policy affect firms' investment preference?," International Review of Economics & Finance, Elsevier, vol. 101(C).
    3. Wang, Shuo & Huang, Deming, 2025. "Competition policy and corporate governance: A quasi-natural experiment based on the implementation of the Anti-Monopoly Law," Finance Research Letters, Elsevier, vol. 81(C).
    4. Li, Tongbin & Gao, Juan, 2025. "Social security contributions, labor income share, and corporate innovation," Finance Research Letters, Elsevier, vol. 77(C).
    5. Gou, Xuezhen & Wang, Shuai, 2025. "How does the anti-trust policy stimulate firms' product market competitiveness? Evidence from the implementation of the Anti-trust Law," Finance Research Letters, Elsevier, vol. 77(C).

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