How does anti-unfair competition law reduce enterprises' financing costs?

The enactment of anti-unfair competition legislation is crucial in mitigating corporate finance limitations by diminishing information asymmetry, stabilizing market anticipations, and promoting ethical company conduct. This paper experimentally illustrates that such legislation substantially reduces both equity and debt financing costs, with a more pronounced benefit in share markets. The law improves market openness by restricting manipulative practices such as deceptive advertising, theft of trade secrets, and predatory pricing, thereby allowing investors to evaluate corporate value and operational risks more precisely. A comprehensive empirical study utilizing difference-in-differences (DID) approaches and robustness tests substantiates that the decrease in financing costs is attributable to two primary mechanisms: enhanced corporate governance norms and productivity development. Improved governance structures reduce agency disputes and reputational concerns, while productivity increases indicate long-term sustainability and operational efficiency to investors. The findings underscore the law's function in establishing a virtuous cycle wherein companies increasingly depend on innovation and ethical conduct to obtain cost-effective finance. The policy implications highlight the necessity for rigorous enforcement, global regulatory alignment, and business investment in governance and technology. This study connects theoretical concepts with practical necessities, promoting rules-based marketplaces emphasizing equity, transparency, and sustainable economic development.