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Competition policy and corporate governance: A quasi-natural experiment based on the implementation of the Anti-Monopoly Law

Author

Listed:
  • Wang, Shuo
  • Huang, Deming

Abstract

This study utilizes the implementation of the Anti-Monopoly Law (AML) as a quasi-natural experiment and examines its impact on corporate governance using a sample of A-share listed companies from 2004 to 2022. Using a DID model, the analysis demonstrates that the implementation of the AML significantly improves corporate governance. Mechanism analysis indicates that this effect is primarily achieved through improving the business environment and enhancing audit quality. Further analysis demonstrates heterogeneity in the impact of the AML on corporate governance.

Suggested Citation

  • Wang, Shuo & Huang, Deming, 2025. "Competition policy and corporate governance: A quasi-natural experiment based on the implementation of the Anti-Monopoly Law," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s154461232500786x
    DOI: 10.1016/j.frl.2025.107527
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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