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Social governance, financial regulation, and corporate investment efficiency

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  • Gong, Zhongyi
  • He, Pei
  • Sun, Yuyang

Abstract

This article selects data from publicly listed companies between 2011 and 2022 as a sample to explore the impact of social governance levels and financial regulation on corporate investment efficiency. Empirical results show that social governance levels can enhance corporate investment efficiency; financial regulation can improve corporate investment efficiency; there is heterogeneity in the impact of financial regulation on the investment efficiency of state-owned enterprises and private enterprises; and the effect of financial regulation on corporate investment efficiency exhibits a threshold effect, which varies with changes in the company's debt-to-asset ratio.

Suggested Citation

  • Gong, Zhongyi & He, Pei & Sun, Yuyang, 2025. "Social governance, financial regulation, and corporate investment efficiency," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005045
    DOI: 10.1016/j.frl.2025.107241
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    1. Chen, Kelin & Li, Changlin & Xiang, Yanlin & Jia, Xiaozhuang, 2025. "Drivers of corporate governance: The impact of social trust and investment efficiency," International Review of Financial Analysis, Elsevier, vol. 108(PA).

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