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Financial judicial specialization and corporate information interaction: Evidence from the establishment of financial courts in China

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  • Zheng, Panpan
  • Li, Zhen

Abstract

Using a quasi-natural experiment created by the establishment of financial courts in China, we employ a multi-time DID method to empirically examine the impact of financial judicial specialization (FJS) on the information interaction behavior of listed companies. Our findings reveal that FJS reduces the likelihood of listed companies responding to investor inquiries. Further analysis shows that although FJS improves the comprehensiveness of company responses, it also reduces their timeliness. Notably, the adverse effect of FJS on the probability of listed companies responding to investor inquiries is more pronounced in contexts with high litigation risk.

Suggested Citation

  • Zheng, Panpan & Li, Zhen, 2025. "Financial judicial specialization and corporate information interaction: Evidence from the establishment of financial courts in China," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007421
    DOI: 10.1016/j.frl.2025.107483
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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