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This study examines the impact of fiscal transparency on the spatial layout of enterprises. After collecting data on 36,285 off-site subsidiaries established by 3725 listed companies in China’s A-share market from 2014 to 2021 and using the conditional logit model for empirical analysis, it is found that listed companies have a higher probability of establishing subsidiaries in cities with higher fiscal transparency. The above effect is more pronounced in the site selection process of subsidiaries that are affiliated with privately owned parent companies or not directly held by their parent companies, as well as micro, small, and medium-sized subsidiaries and subsidiaries whose main business is in the financial or real estate industry. To better attract capital inflows, local governments should enhance their information disclosure systems to improve fiscal transparency, strengthen communication with enterprises, and implement differentiated policies tailored to various types of enterprises.
Ding et al. (Wed,) studied this question.