Information Dispersion, Reform of the Approval System, and State-Owned Enterprise Investment Efficiency: A Quasi-Natural Experiment Based on the Establishment of Prefecture-Level City Administrative Examination and Approval Center
- WANG Hongjian, FU Wenji, CAO Yuqiang & LI Qingyuan
- WANG Hongjian, FU Wenji (Nanchang University, 330031)CAO Yuqiang (Guangdong University of Foreign Studies, 510420)LI Qingyuan (Wuhan University, 430072)
As a key measure of supply-side structural reform, the reform of the approval system, through reshaping the relationship between the government and the market, will help further break administrative monopolies and optimize public administration processes, thereby improving the operational flexibility of enterprises at the micro level. This paper selects A-share listed companies on Shanghai and Shenzhen stock exchanges from 1999 to 2017 as the research object, and uses the local information theory of Hayek (1945) as a guide to examine how the reform of the approval system affects the investment efficiency of state-owned enterprises (SOEs) and its working mechanism. It finds that the reform of the approval system significantly improved the SOE investment efficiency, as manifested in the significant increase in the sensitivity between corporate investment and investment opportunities, and more prominently so in companies with a greater degree of investment opportunity information dispersion. The above research conclusions are still valid after endogenous testing and robustness testing. Cross-sectional tests show that: first, compared with less-marketized regions, the reform of the approval system has a more significant effect on improving the SOE investment efficiency in more marketized regions; the impact of the reform is relatively large; the inspection of the working mechanism finds that the reform of the approval system significantly suppresses the SOE transaction costs. The research conclusions of this paper not only help reveal the current microeconomic effects of streamlined administration and decentralization, but also provide evidence support for deepening the SOE reform.
- Information Dispersion, Reform of the Approval System, StateOwned Enterprise Investment Efficiency