Big Data Policy and Corporate Investment Efficiency: Evidence from China
Xiaoyu Cui, Baolei Qi, Wen Zhang · Emerging Markets Finance and Trade · 2025
This study explores how big data policy affects corporate investment efficiency. Utilizing the implementation of China’s National Big Data Comprehensive Pilot Zones (NBDPZ) policy as a quasi-natural experiment, we find that a firm’s investment efficiency enhances after the designation of the city where it is located for the NBDPZ. Furthermore, mechanism analyses show that the NBDPZ policy introduces financial and technical resources into local firms, as well as mitigates agency conflicts and improves internal control, thereby curbing inefficient investment. We also find that the documented policy effect conditions on firms’ access to resources, governance practices, and regional characteristics. Overall, this study elucidates the microeconomic implications of the NBDPZ policy and highlights the importance of national big data initiatives.