Local judicial system reform and corporate investment

Evidence from unified management of local courts below the province

Bibliographic Data

ID6045448
AuthorsRenjie Zhao (0000-0002-8426-7049, Northwest University, corresponding author), Jiakai Zhang (0000-0001-8106-3721, New Mexico Institute of Mining and Technology)
Year2022
Volume2
Issue4
Pages290-303
Publication date2022-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueChina Economic Quarterly International (JOURNAL)
Journal identifiersISSN: 2666-9331 • E-ISSN: 2666-9331
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.ceqi.2022.11.005
OpenAlexW4313216327
LanguageEN
Citations received4
References cited18

Using the policy of unified management of local courts below the province, we found that the independence of the judiciary can significantly improve the success rate of firms in administrative litigation cases, promoting the corporate fixed assets investment rate. The positive influence of reform of local judicial system on private firms is more significant than that on state-owned enterprises. Mechanism analysis shows that the reform of local judicial system will promote financial development and improve corporate financing, reduce corporate bribery expenditures and promote long-term investment and R&D expenditures, which indicates that deepening judicial system reform can achieve the simultaneous advancement of legal construction and economic construction

Business · Economic policy · Economics · Judicial Independence · Judicial reform · Market economy · Political science · Politics · Corporate Finance and Governance · Corruption and Economic Development · Law · Law, Economics, and Judicial Systems · Accounting · Finance

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Open DOIOpen Access