Entrepreneurship,Regional Business Environments and Firm Investment Efficiency:New Evidence from China's Time-Honored Brands
At present,the investment efficiency of Chinese firms is not high,especially that of listed companies,and there is still room for improvement,with a high proportion of wasteful and repetitive investment,and insufficient investment in high-technology growth enterprises,resulting in the coexistence of the problems of excessive ineffective investment and insufficient effective investment.It is reasonable to give full play to the entrepreneurial spirit at the regional level and continue to opti-mize regional business environments for promoting the continuous improvement of firm investment efficiency,and helping China's economy to embark on the road of high-quality development,considering that investment is still one of the most im-portant driving factors for China's economy to achieve high-quality development.In this context,this paper investigates the impact of entrepreneurship on firm investment efficiency,which is of great practical significance.In this paper,we first match and merge the macro and micro data of Chinese listed companies,Chinese Time-honored Brands brands at prefecture level and regional business environments,use the number of Chinese Time-honored Brands brands per 10,000 people in each city to measure the abundance of entrepreneurship,and identify the causal impact of entre-preneurship on firm investment efficiency,using two instrumental variables of urban resource endowment and sowing area.The results show that,the entrepreneurship helps to reduce corporate inefficient investment expenditures and helps to both curb corporate over-investment behavior and compensate for corporate under-investment;A test of the impact mechanism shows that,regional entrepreneurship promotes firms'R&D activities,eases firms'financing constraint,attracts more talent-ed people to local firms,and thus has an impact on firm investment efficiency;A test of the moderating effect based on the re-gional Doing Business index show that,the entrepreneurship has a suppressive effect on firm inefficient investment only in re-gions with poor business environments and enhances investment efficiency mainly by suppressing firm overinvestment;An in-stitutional experiment based on the administrative approval system reform provided by the prefecture-level municipalities shows that the study findings are strongly robust.This study extends the research on the mechanism of entrepreneurship affecting firm investment efficiency,and portrays that entrepreneurship still promotes firm investment efficiency in regions where the progress of business environment con-struction is lagging behind.Obviously,the findings of this paper provide theoretical insights for improving the efficiency and quality of firm investment,and also have reference value for the introduction of policy measures to promote entrepreneurship.Specifically,the following three aspects are included:(1)Entrepreneurial spirit must be vigorously promoted,a social atmo-sphere suitable for entrepreneurial innovation and entrepreneurship should be created,and the role of excellent entrepreneurs should be given full play to their exemplary leadership.(2)Encourage regions to increase the exploration and inheritance of local entrepreneurial resources,and support the establishment of a number of national-level cultivation bases for new-genera-tion entrepreneurial talents in regions with developed private economies.(3)Governments at all levels should create an excel-lent business environment for the promotion of entrepreneurship.
EntrepreneurshipRegional Business EnvironmentsInvestment EfficiencyChina's Time-honored Brands
NETL
NSTL
万方数据
