The impact of information infrastructure on firm market value: evidence from Chinese listed firms

Based on the data of Chinese listed companies from 2010 to 2017, we empirically study the impact of information infrastructure on firm market value. Using the construction of 4 G base stations since 2014 as a quasi-natural experiment, we prove that information infrastructure significantly increases firms' market value through the continuous difference-in-differences method. Heterogeneity analysis shows that the policy effect is more pronounced for large firms, non-state-owned firms, and firms in high-competitive industries. The underlying mechanism is that information infrastructure can promote digital transformation of firms, enhance firms' level of innovation and production efficiency. Our study provides new perspectives and policy implications on how information infrastructure development can enhance firms' market value.