The impact of Social Policy Burden on the Change of Registration Address: Concerning on Excessive Employee Rate

Abstract

Using the data of A-share listed companies in China from 2004 to 2019, this paper empirically investigates the relationship between social policy burden and the change of registration address of firms. We find that the heavier the social policy burden caused by the close relationship between enterprises and local government, the more reluctant the enterprises are to change their registration address. Therefore, there is still a long way to go to create an institutional environment for fair economic competition and common development in different regions.