Geographic proximity and corporate investment efficiency: Evidence from high-speed rail construction in China

B-Tier
Journal: Journal of Banking & Finance
Year: 2022
Volume: 140
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Applying the difference-in-differences method, we show that high-speed rail (HSR) construction improves investment efficiency in China. The effect is more pronounced for companies with low information transparency and low media coverage, suggesting that HSR can mitigate information asymmetry while reducing external regulatory costs. Our analysis also shows that the effect is more powerful for non-state-owned enterprises, high-growth firms, and those companies located in core cities. Overall, our findings suggest that HSR can improve investment efficiency by shortening the travel time between firms and their investors.

Technical Details

RePEc Handle
repec:eee:jbfina:v:140:y:2022:i:c:s0378426622001066
Journal Field
Finance
Author Count
4
Added to Database
2026-01-25