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The impact of competition policy on corporate financialization: A quasi-natural experiment based on the anti-monopoly law

Author

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  • Liu, Yilin
  • Jiang, Xi

Abstract

This study examines the implementation of the Anti-Monopoly Law of the People's Republic of China, enacted in 2008, as a quasi-natural experiment.Based on data from non-financial listed companies in China's A-share market from 2007 to 2023, it systematically examines the impact of competition policy on corporate financialization and its underlying mechanisms. The study finds that competition policy suppresses corporate financialization; there are significant differences in the suppression effect of competition policy on corporate financialization between high-cash-flow and low-cash-flow firms; financing constraints play a significant mediating role in the relationship between competition policy and corporate financialization; and investment opportunities in the main business also serve as a significant mediating factor in this relationship. This research provides new empirical evidence to assess the microeconomic consequences of the Anti-Monopoly Law from the unique perspective of corporate financialization and offers profound policy implications on how to optimize the market competition environment to guide real enterprises to "return to their main business."

Suggested Citation

  • Liu, Yilin & Jiang, Xi, 2026. "The impact of competition policy on corporate financialization: A quasi-natural experiment based on the anti-monopoly law," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325025590
    DOI: 10.1016/j.frl.2025.109310
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