Benefits and risks of corporate investment under the constraints of transnational investment laws

Transnational investment law, as a pivotal external governance policy, exerts a critical influence on corporate sustainable development. This study empirically examines the investment governance effects of transnational investment law utilizing data from Chinese Shanghai and Shenzhen A-share listed companies between 2013 and 2023, employing a difference-in-differences approach. Findings reveal that transnational investment law significantly enhances corporate investment efficiency and mitigates investment risks, operating through the mechanisms of improved information transparency and strengthened internal controls. Furthermore, transnational investment law enhances corporate high-quality development. This research provides substantial empirical evidence and policy implications for governments refining transnational investment frameworks and corporations optimizing investment decisions.