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【IMI Working Paper No. 2208 [EN]】Need for Speed: High-speed Rail and Firm Performance

发布日期:2022-02-21来源:

Abstract

Exploiting the staggered expansion of Chinas passenger-dedicated high-speed rail (HSR) network, we study the relationship between HSR connection and firm performance. By highlighting the importance of firm location and face-to-face interactions, we test the differential impact of HSR connection on the performance and growth of firms that differ in their dependence on communication and inter-city travel as production inputs. Our results confirm that firms in communication-intensive and travel-dependent industries benefit more from the operation of the HSR. Moreover, in examining the specific mechanisms at work, we find evidence that the HSR promotes firm performance and growth for the communication-intensive and travel-dependent through increased analyst attention, productivity boosts, and market expansions. Our findings imply that face-to-face interactions, through facilitating the exchange and acquisition of information, are potentially important for our understanding of local (home) biasof investment documented in the literature.

【Keywords】

Communication cost, High-speed rail, Firm location, Firm performance

【Authors】

Kuang Chun, School of Banking and Finance, University of International Business and Economics

Liu Zijie, Simon Business School, University of Rochester

Zhu Wenyu, IMI Research Fellow, School of Finance, Renmin University of China


上一篇:【IMI Working Papers NO.2204】地方政府人才引进政策促进了区域创新吗 下一篇:【IMI Working Paper No. 2207 [EN]】Application of Improved Convolution Neural Network in Financial Forecasting

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