IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v70y2025i06ns0217590822500369.html
   My bibliography  Save this article

High-Speed Railway Construction, Information Environment And Corporate Cost Stickiness: The Case Of China

Author

Listed:
  • LINZI ZHOU

    (School of Management, Hainan University, 58 Renmin Avenue, Haikou, Hainan 570228, P. R. China)

  • YUANHUAI PENG

    (School of Management, Jinan University, 601 Huangpu Avenue, Guangzhou 510632, P. R. China)

  • JUN HU

    (School of Management, Hainan University, 58 Renmin Avenue, Haikou, Hainan 570228, P. R. China)

  • LU YANG

    (China Economics and Management Academy, Central University of Finance and Economics, 39 School Avenue, Beijing 100081, P. R. China)

Abstract

Infrastructure constructions promote the flow of production factors across regions and improve the information environment of the region. This paper investigates the impact of infrastructure construction, proxy as the opening of high-speed railway (HSR), on corporate cost stickiness. The results show that the opening of HSR is beneficial to decreasing corporate cost stickiness, and this positive impact is robust after IV estimations and placebo test. Moreover, we find some evidence that the opening of HSR can promote the frequency and quality of analysts’ survey, and improved the corporate information environment. Further analyses show that the positive impact of HSR on corporate cost stickiness is more pronounced for firms with serious information asymmetry and weaker corporate governance. Then after the effect of the HSR on stickiness of different type corporate cost was tested, the results showed that the impact of the opening of HSR on corporate cost stickiness mainly exists in manager perks and salary-welfare. Based on the introduction of HSR, our findings clarify and highlight the role of infrastructure construction on corporate asymmetric cost management behavior.

Suggested Citation

  • Linzi Zhou & Yuanhuai Peng & Jun Hu & Lu Yang, 2025. "High-Speed Railway Construction, Information Environment And Corporate Cost Stickiness: The Case Of China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 70(06), pages 1645-1676, September.
    • Handle: RePEc:wsi:serxxx:v:70:y:2025:i:06:n:s0217590822500369
    DOI: 10.1142/S0217590822500369
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590822500369
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590822500369?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:serxxx:v:70:y:2025:i:06:n:s0217590822500369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.