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New securities law, internal control quality, and corporate investment efficiency

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  • Li, Jingsong
  • Liu, Anqi

Abstract

This study takes enterprises listed on the Shanghai and Shenzhen Stock Exchanges from 2018 to 2023 as a sample, focusing on the policy shock of the implementation of the new Securities Law, and systematically explores its impact mechanism and heterogeneous manifestations on corporate investment efficiency. The findings reveal that the implementation of the new Securities Law has significantly enhanced corporate investment efficiency. Internal control quality plays a pivotal mediating role in policy transmission. Moreover, there is significant heterogeneity in policy effects based on the nature of property rights. State-owned enterprises (SOEs), with stronger policy sensitivity and execution capabilities, experience more pronounced improvements in investment efficiency, while private enterprises, constrained by resource limitations and governance structures, exhibit relatively limited policy responses.

Suggested Citation

  • Li, Jingsong & Liu, Anqi, 2026. "New securities law, internal control quality, and corporate investment efficiency," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325025425
    DOI: 10.1016/j.frl.2025.109293
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