Assessing the Impact of the <i>Film Industry Promotion Law</i> on Chinese Film Enterprises: A PSM-DID Approach

This study evaluates the impact of China’s Film Industry Promotion Law —the first industry-specific law in the cultural sector—on the financial and social performance of Chinese film enterprises. Using a Propensity Score Matching-Difference- in-Differences (PSM-DID) approach with data from A-share listed companies (2011–2019), the study finds that while the law improved social performance, it led to a decline in financial performance. However, overall corporate performance significantly improved. These results highlight the dual role of regulatory frameworks in balancing social benefits and economic outcomes. The study fills a research gap, introduces an innovative analytical framework, and enhances understanding of how institutional environments affect corporate performance, offering valuable insights for shaping film industry policies in developing countries.