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Moderating role of antitrust enforcement in the relationship between legal quality and corporate governance

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  • Weng, Yiyu
  • Yin, Yuchen
  • Yang, Li
  • Yang, Pengyu

Abstract

Drawing on data from Chinese firms from 2011 to 2023, this study examines whether improvements in legal quality strengthen corporate governance and how antitrust enforcement shapes this relationship. Empirical results indicate that legal quality has a strong positive effect on governance capacity, the benefits are the most pronounced among poorly governed firms and diminish as governance improves, and antitrust enforcement weakens the positive association, reflecting institutional trade-offs. Overall, the findings deepen ongoing debates about how legal institutions influence governance and highlight the complex regulatory environment in which firms operate.

Suggested Citation

  • Weng, Yiyu & Yin, Yuchen & Yang, Li & Yang, Pengyu, 2026. "Moderating role of antitrust enforcement in the relationship between legal quality and corporate governance," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s154461232600005x
    DOI: 10.1016/j.frl.2026.109473
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