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Beyond regular hours: Government overtime and new quality productivity of Chinese listed firms

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  • Wu, Yanfei
  • Wu, Kai

Abstract

This study examines the impact of government administrative efforts, proxied by overtime hours, on firm-level innovation and productivity in China. Using novel satellite-based nighttime light data and firm financial information, we construct measures of government overtime and new quality productivity indices. Fixed-effects regressions reveal that higher government overtime is associated with increased corporate innovation, particularly for firms in high-tech and R&D-intensive sectors. Politically connected firms also benefit more from government responsiveness. Our findings highlight the critical role of the public sector efforts in fostering firm-level productivity and underscore the importance of administrative practices in shaping innovativeness.

Suggested Citation

  • Wu, Yanfei & Wu, Kai, 2025. "Beyond regular hours: Government overtime and new quality productivity of Chinese listed firms," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005641
    DOI: 10.1016/j.frl.2025.107301
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    Keywords

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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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