Greatness in Simplicity:Has the Cut Certification to Create Convenience Improved Enterprise Value?
The institutional environment,as an institutional and systemic arrangement for development,plays a pivotal role for micro-entrepreneurs such as enterprises.In recent years,the in-depth action of"Cut Certification to Create Convenience"is an important initiative of government departments at all levels to continuously promote the reform of releasing management and serving the public,and assessing its role in enhancing the value of enterprises is conducive to expanding the synergistic policy tools for stimulating market vitality and enhancing economic resilience.In this paper,we manually collect data on the abolition of certificates in each prefecture-level city from 2015 to 2020,establish a multi-temporal DID model and a fixed-effects model,and study the impact of the"Cut Certification to Create Convenience"initiative on enterprise value.The findings are as follows:"Cut Certification to Create Convenience"significantly increases enterprise value,and this conclusion still holds after various robustness tests;"Cut Certification to Create Convenience"increases enterprise value by lowering the systematic transaction costs,the actual burden of taxes and fees on enterprises,and increasing the incentives to invest.The heterogeneity analysis shows that the value-enhancing effect of"Cut Certification to Create Convenience"is stronger for non-SOEs,small-sized listed firms,and high-end manufacturing firms;the"facilitating"and"benefiting"categories of"Cut Certification to Create Convenience"are more important than the"facilitating"and"benefiting"categories of"facilitating the people".The value of enterprises in the"enterprise-friendly"is significantly increased by the"Cut Certification to Create Convenience"actions,but not in the"nurturing enterprises"category."Cities without certificates",an upgraded version of the"Cut Certification to Create Convenience"initiative,did not increase enterprise value.In terms of policy,the first step is to continue to promote the"Cut Certification to Create Convenience"initiative and further consolidate the results of the"Cut Certification to Create Convenience"reform.Information sharing among government departments will be strengthened,information barriers between departments will be reduced,and unreasonable and illegal supporting documents will be cut to the maximum extent possible;a sound mechanism for supervision and accountability will be established,and a system of accountability will be strictly implemented to ensure that the"Cut Certification to Create Convenience"initiative is put into practice,and that it is truly convenient for the public and beneficial to enterprises.Second,the burden of proof should be waived for matters that are generally consistent with people's basic perceptions and the laws of nature,and that involve individual subjective evaluations.There should also be a targeted approach to the medium-and low-end manufacturing industries,as well as a number of special"Cut Certification to Create Convenience"initiatives in the area of"enterprise development".Finally,to guide the healthy development of the market and provide efficient government management,scientific standards of proof and the burden of proof should be used to guard the important passes after the"Cut Certification to Create Convenience"initiative.The possible marginal contributions of this paper are as follows:first,this paper complements the literature on institutional and policy externalities from the perspective of"Cut Certification to Create Convenience".Second,although the"Cut Certification to Create Convenience"initiative has been implemented for many years,there are very few studies on its policy effects,and this paper provides new empirical evidence to empirically test the policy effects of the"Cut Certification to Create Convenience"initiative.Lastly,this paper explores the effect of the"Cut Certification to Create Convenience"initiative on enterprise value enhancement and its underlying mechanism from the more policy-driven factors such as the institutional transaction costs and actual tax burden of enterprises,and the incentives for enterprises to make new investments.
cut certification to create convenienceenterprise valueinstitutional transaction costseffective tax burdennew investment by enterprises
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