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Enhancing investment efficiency through improved information disclosure

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  • Pan, Liang
  • Yang, Yong

Abstract

This study investigates the effect of information disclosure on the investment efficiency of China's A-share listed companies over the period 2018–2022. Our results demonstrate that enhancing the quality of information disclosure leads to a substantial improvement in investment efficiency. By reducing information asymmetry and acting as a signaling mechanism, adequate information disclosure encourages greater investor propensity and investment scale, ultimately promoting investment efficiency. Additionally, we find that improving information disclosure quality mitigates the cost of financing constraints, thereby alleviating financial pressures associated with underinvestment.

Suggested Citation

  • Pan, Liang & Yang, Yong, 2025. "Enhancing investment efficiency through improved information disclosure," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003666
    DOI: 10.1016/j.frl.2025.107103
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    1. Li, Xiao & Mo, Furong & Li, Xinfang, 2025. "Environmental information disclosure, green finance, and corporate investment efficiency," Finance Research Letters, Elsevier, vol. 82(C).
    2. Wang, Xuecheng & Zhang, Fafu, 2025. "Impacts of China's social credit reform on firm investment efficiency: Evidence from a quasi-natural experiment in China," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    3. Wang, Tianchen & Xie, Ziliang & Du, Chaofei & Cheng, Zhangfan, 2025. "Financial technology empowerment, investor attention, and corporate investment efficiency," International Review of Financial Analysis, Elsevier, vol. 107(C).

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