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Financial regulation, investment, and total factor productivity in enterprises

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  • Ma, Yanni
  • Qi, Chenyang

Abstract

This study constructs a panel dataset using data from publicly listed companies in China's Shenzhen and Shanghai A-shares from 2009 to 2023. It employs a bidirectional fixed effects model to explore the interactive effects of financial regulation and investment behavior on corporate total factor productivity (TFP). The empirical analysis indicates that the strengthening of financial regulation has a significant positive driving effect on total factor productivity (TFP) of enterprises. Additionally, investment levels enhance TFP, while financial regulation markedly moderates the relationship between investment and TFP. The impact of financial regulation on TFP shows significant variation across different ownership types.

Suggested Citation

  • Ma, Yanni & Qi, Chenyang, 2025. "Financial regulation, investment, and total factor productivity in enterprises," Finance Research Letters, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pa:s1544612325010906
    DOI: 10.1016/j.frl.2025.107832
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    References listed on IDEAS

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    1. Yan, Xi & Li, Xinwu & Niu, Yuhao, 2025. "Strategic alliances and employment: Evidence from China," Finance Research Letters, Elsevier, vol. 86(PD).

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