Volume 30, Issue 1, 2021
DOI: 10.24205/03276716.2020.2063
Government Regulation Burden, Strategic Balance, and Corporate Performance
Abstract
This paper combines public interest theory, public choice theory, institutional logic theory, and strategic balance theory, uses multiple mediation models, systematically analyzes and empirically tests the relationship between government regulatory burden and corporate performance, and the impact of corporate strategic balance on the relationship. The results show that there is an inverted U-shaped relationship between government regulatory burden and corporate performance. The market strategy and non-market strategic investment level play multiple intermediary roles between government regulatory burden and corporate performance. This conclusion is still established after the robustness test. It is of great theoretical and practical significance to clarify the intrinsic mechanism of government regulation burden affecting enterprise performance for improving the quality of government regulation and the efficiency of enterprise operation.
Keywords
Government Regulation Burden, Strategic Balance, Firm Performance, Multiple Mediating Effect