Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis
The policy environment is important for corporate development. This paper extracts forward-looking disclosures from annual financial reports of Chinese private listed firms, and uses a textual similarity index by employing textual analysis tools, then constructs a novel measure to capture the level...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-10-01
|
| Series: | China Journal of Accounting Studies |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2025.2477564 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849432401279713280 |
|---|---|
| author | Dongmin Kong Lu Shi |
| author_facet | Dongmin Kong Lu Shi |
| author_sort | Dongmin Kong |
| collection | DOAJ |
| description | The policy environment is important for corporate development. This paper extracts forward-looking disclosures from annual financial reports of Chinese private listed firms, and uses a textual similarity index by employing textual analysis tools, then constructs a novel measure to capture the level of policy perception of private firms. From the view of textual similarity, this paper investigates the impact of firms’ policy perception on investment efficiency. Empirical results show that private firms with high policy perception presented in forward-looking statements are more likely to improve future investment efficiency. The main mechanisms are the spillover effect of information disclosure and the decrease on corporate uncertainty; however, more government subsidies probably reduce the positive influence of policy perception. After robustness checks, we obtain consistent results. Further evidence indicates that the positive effect of policy perception is more pronounced in financially constrained firms, and firms with less managerial myopia. |
| format | Article |
| id | doaj-art-06882b9b6d2749d2a6615d8ab3147de7 |
| institution | Kabale University |
| issn | 2169-7213 2169-7221 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | China Journal of Accounting Studies |
| spelling | doaj-art-06882b9b6d2749d2a6615d8ab3147de72025-08-20T03:27:22ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212024-10-0112477680010.1080/21697213.2025.2477564Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysisDongmin Kong0Lu Shi1School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei, ChinaSchool of Management, Research Institute of Digital Governance and Management Decision Innovation, Wuhan University of Technology, Wuhan, Hubei, ChinaThe policy environment is important for corporate development. This paper extracts forward-looking disclosures from annual financial reports of Chinese private listed firms, and uses a textual similarity index by employing textual analysis tools, then constructs a novel measure to capture the level of policy perception of private firms. From the view of textual similarity, this paper investigates the impact of firms’ policy perception on investment efficiency. Empirical results show that private firms with high policy perception presented in forward-looking statements are more likely to improve future investment efficiency. The main mechanisms are the spillover effect of information disclosure and the decrease on corporate uncertainty; however, more government subsidies probably reduce the positive influence of policy perception. After robustness checks, we obtain consistent results. Further evidence indicates that the positive effect of policy perception is more pronounced in financially constrained firms, and firms with less managerial myopia.https://www.tandfonline.com/doi/10.1080/21697213.2025.2477564Policy perceptioninvestment efficiencyforward-looking statementstextual analysis |
| spellingShingle | Dongmin Kong Lu Shi Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis China Journal of Accounting Studies Policy perception investment efficiency forward-looking statements textual analysis |
| title | Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis |
| title_full | Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis |
| title_fullStr | Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis |
| title_full_unstemmed | Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis |
| title_short | Policy perception of Chinese private firms and corporate investment efficiency: evidence from textual analysis |
| title_sort | policy perception of chinese private firms and corporate investment efficiency evidence from textual analysis |
| topic | Policy perception investment efficiency forward-looking statements textual analysis |
| url | https://www.tandfonline.com/doi/10.1080/21697213.2025.2477564 |
| work_keys_str_mv | AT dongminkong policyperceptionofchineseprivatefirmsandcorporateinvestmentefficiencyevidencefromtextualanalysis AT lushi policyperceptionofchineseprivatefirmsandcorporateinvestmentefficiencyevidencefromtextualanalysis |