Macroeconomic data manipulation and corporate investment efficiency: Evidence from China

This study examines the ways in which companies react to the manipulation of macroeconomic data, from the perspective of investment efficiency. Our findings reveal a notable decrease in the investment efficiency of companies located in areas where macroeconomic data manipulation is more prevalent. This effect is significantly stronger for companies in regions characterized by increased government intervention, reduced transparency of government information, and heightened economic policy uncertainty. Moreover, tampering with macroeconomic data results in the misallocation of bank loans, ultimately reducing firms' investment efficiency. Our research indicates that macroeconomic data manipulation can lead to biased macroeconomic information and diminished resource allocation efficiency.