Trends

Preview of the 20th Xi Xian Forum on Income Distribution and Public Finance
publish date:2021-10-25 publisher:Sheng Qian

Title: The Sky is the Limit: Information Infrastructure Development and Business Investment

Time: 12:00am-13:00pm, 28 October 2021

Venue: Conference Room 119, Wenqin Building

Moderator: Prof. Lu Yuanping

Guest speaker: Tao Yunqing

  Fresh PhD candidate in Financial Engineering, Zhongnan University of Economics and Law

Abstract:

  Reasonable assessment of the microeconomic effects of information infrastructure construction has theoretical significance and practical value for the development of a digital economy and the building of a strong networked information nation. This study finds that the construction of information infrastructure significantly improves the level of enterprise investment. The mechanism analysis shows that the reduction of information asymmetry and the improvement of management efficiency of enterprises are the main channels through which information infrastructure construction improves the level of enterprise investment. Heterogeneity analysis shows that the promotion effect of information infrastructure construction on enterprise investment levels is mainly found among manufacturing enterprises, enterprises with higher financing constraints and enterprises with higher government subsidies. Further analysis shows that information infrastructure development also significantly increases the level of equity-based investment of enterprises; at the same time, information infrastructure development increases the sensitivity of enterprise investment to investment opportunities, indicating that it promotes the efficiency of enterprise investment; finally, information infrastructure development promotes enterprise productivity by increasing the level of enterprise investment.