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Market competition and firm behavior: A comprehensive study on the impact of antimonopoly law

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  • Li, Gang
  • Jiang, Yongan

Abstract

This study examines the impact of the antimonopoly law on corporate social responsibility (CSR) in China by analyzing the diverse effects on different types of enterprises and employee groups. The implementation of the law aimed to foster a fairer competitive market by dismantling monopolistic forces, particularly in their wage decisions. Utilizing a difference-in-differences (DID) approach, we find that the law significantly promotes CSR, especially in labor-intensive enterprises, which show a greater commitment to social responsibility compared with technology-intensive firms. The positive effect on ordinary employees’ wages is more pronounced than on managerial staff, highlighting increased wage fairness and transparency. These findings contribute to the understanding of how regulatory frameworks shape corporate behavior and social responsibility.

Suggested Citation

  • Li, Gang & Jiang, Yongan, 2024. "Market competition and firm behavior: A comprehensive study on the impact of antimonopoly law," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324008729
    DOI: 10.1016/j.frl.2024.105842
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    References listed on IDEAS

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    Cited by:

    1. Yi, Fang & Cao, Chenru & Xu, Jingxuan, 2024. "How antitrust enforcement affects corporate ESG performance? Evidence from merger review cases in China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1730-1746.

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