On The Impact Mechanism Of Dialect Distance Influence Cross-regional Investment Of Listed Companies

Enterprise investment in different places is a microscopic form of capital flow across regions.The free flow of capital has contributed to optimal allocation of capital structure,efficient allocation of resource and improvement of industrial spatial distribution,thereby achieving highquality economic development.However,China has long faced many informal institutional obstacles,which have aggravated regional protectionism and market segmentation,and enterprises face multiple obstacles when making investment in different places.Previous studies have investigated the cross-regional investment behavior of listed companies from the perspectives of cultural distance,genetic distance and trust.Then,as an important manifestation of informal system,will dialect differentiation also hinder enterprises’ cross-regional investment?Therefore,based on China’s unique cultural background and realistic situation,this paper investigates the influence and mechanism of dialect distance on cross-regional investment of listed companies.This article used the data of listed companies establishing subsidiaries in different places from 2003 to 2018.First of all,the dialect distance and the cross-regional investment of listed company,and the cross-regional investment network of listed company has analyzed at the same time.Secondly,it examined the influence degree and mechanism of dialect distance on the cross-regional investment of listed company.The research found in this paper:(1)The cross-regional investment network density of Chinese listed companies is increasing year by year,and the network density value increased from 0.046 to 0.666 during the sample period;(2)Dialect distance has an obstacle effect on the cross-regional investment of listed companies.(3)Dialect distance intensifies regional protectionism by increasing market segmentation barriers between the two regions,and then affects the cross-regional investment of listed companies.(4)The distance between dialects can reduce the information exchange between two regions,increase the cost of communication,and then hinder the cross-regional investment of listed companies.(5)Dialect distance restrains the crossregional investment of listed companies by widening the social trust difference between regions.According to the conclusions of this research,this paper has made three proposals,including enhancing the learning and promotion of Mandarin,the need to focus on cultural "soft" elements in enterprise development,and making the corresponding market integrative.