| How to improve investment efficiency is a hot issue in academic and practical circles.This paper takes the implementation of the property law in 2007 as the natural experiment,and selects the non-financial listed companies in Shanghai and Shenzhen stock exchanges of China from 2000 to 2017 as the research sample,and empirically tests the impact of creditor protection on investment efficiency.The empirical results show that after the implementation of the property law,the investment efficiency of enterprises has been significantly improved,indicating that the improvement of the level of creditor protection has a positive effect on the investment efficiency.Further research found that:(1)Compared with enterprises with small financing constraints,weak external financial dependence and low the ratio of fixed assets,enterprises with large financing constraints,strong external financial dependence and high the ratio of fixed assets account for a greater investment efficiency.(2)For non-state-owned enterprises,high-tech enterprises and enterprises headquartered in areas with good legal environment,the relationship between creditor protections and investment efficiency is more significant.Based on the empirical study of China’s emerging transition economy,this paper identifies the causal relationship between law and investment efficiency.The economic effect and action mechanism of the bankruptcy law and the property law on the corporate investment are also clarified,this provides new evidence in the field of law and finance.It is of great significance to further improve the law to protect the interests of creditors so as to effectively improve the efficiency of investment and promote economic development. |
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