How does regional judicial quality improvement enhance enterprises' capital allocation efficiency: Evidence from the establishment of circuit court

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2025-03-30 DOI:10.1016/j.irfa.2025.104212

Lei Liu

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引用次数: 0

Abstract

This paper makes a valuable contribution to the existing research framework on finance and law. The subject of this investigation is the efficacy of capital resource allocation in enterprises in response to regional judicial quality enhancements. This study explicitly employs the establishment of circuit courts as a natural experiment to investigate the causal relationship between the efficacy of capital allocation and judicial enhancement in enterprises that operated from 2012 to 2022. The findings suggest that the effective implementation of circuit courts can enhance the efficiency of capital allocation for firms by reducing finance costs and increasing the productivity of all factors. Nevertheless, the findings do not apply to all enterprises. Heterogeneous analysis suggests that enterprises subject to more severe financial constraints are more susceptible to changes in the legal environment. Furthermore, the heterogeneous effects of a variety of legal environments suggest that the inherent legal environment has a substantial impact on the improvement of regional judicial quality. This paper provides a unique viewpoint on the inefficiency of enterprises' allocation of capital resources.

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区域司法质量提升如何提升企业资本配置效率：来自巡回法院设立的证据

本文对现有的金融与法律研究框架做出了有价值的贡献。本研究的主题是企业资本资源配置对区域司法质量提升的响应效果。本研究明确采用设立巡回法院作为自然实验，考察2012 - 2022年经营的企业资本配置效能与司法提升之间的因果关系。研究结果表明，有效实施巡回法院可以通过降低融资成本和提高各要素生产率来提高企业的资本配置效率。然而，研究结果并不适用于所有企业。异质分析表明，受到更严重财务约束的企业更容易受到法律环境变化的影响。此外，各种法律环境的异质效应表明，内在法律环境对区域司法质量的提高有着实质性的影响。本文对企业资本资源配置的低效率问题提供了一个独特的视角。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.