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Pension insurance contribution rate and corporate investment efficiency

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  • Pei, Donghui
  • Wang, Baoqian

Abstract

This study identifies the pension insurance contribution rate as an important factor affecting corporate investment efficiency. Empirical research findings reveal a significant crowding-out effect between the pension insurance contribution rate and corporate investment efficiency. That is, the higher the pension insurance contribution rate, the more pronounced the crowding-out effect on corporate investment efficiency. Further analysis of heterogeneity indicates that the crowding-out effect of the pension insurance contribution rate on corporate investment efficiency is more pronounced in non-state-owned enterprises and in enterprises with higher financing constraints.

Suggested Citation

  • Pei, Donghui & Wang, Baoqian, 2024. "Pension insurance contribution rate and corporate investment efficiency," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002769
    DOI: 10.1016/j.frl.2024.105246
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    References listed on IDEAS

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    1. Zuo, Junqing & Zhang, Wei & Ruan, Chenghao & Xiong, Xiong, 2024. "A blessing or a curse? Non-local mutual fund holdings and firm investment efficiency," Finance Research Letters, Elsevier, vol. 66(C).

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