Ethnic diversity, investment efficiency, mediating roles of trust and agency cost
Ying Zou,
Zhuoming Zhong and
Jia Luo
Economic Analysis and Policy, 2021, vol. 69, issue C, 410-420
Abstract:
This study explores the relationship between ethnic diversity and corporate investment in Chinese listed firms. Based on data from China’s A-share market companies and the national census dataset, we find that local ethnic diversity is negatively related to corporate investment efficiency. Furthermore, we explore the channel through which ethnic diversity affects corporate investment efficiency, and our study indicates that both social trust and agency cost play mediating roles between ethnic diversity and investment efficiency. Robustness tests verify our conclusions.
Keywords: Ethnic diversity; Investment efficiency; Social trust; Agency cost (search for similar items in EconPapers)
JEL-codes: G30 M14 Z10 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:69:y:2021:i:c:p:410-420
DOI: 10.1016/j.eap.2020.12.017
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