How smart city building improved corporate performance: empirical evidence of China’s a-share listed companies

Smart city construction is crucial for regional economic development, and the micro-level impact of such construction on business operations cannot be ignored. Based on the panel data of Shanghai and Shenzhen A-share listed companies from 2008 to 2020, this paper investigates the relationship between smart city construction and firm performance and its mechanism of action. The study findings show that (1) smart city construction significantly improves enterprise performance; (2) the improvements are significant across all industries and regions; and (3) the impact of smart city construction on small and medium-sized enterprises (SMEs) and nonstate enterprises is more significant than that on large enterprises and state-owned enterprises. These findings provide a theoretical framework and fresh perspectives for encouraging coordinated regional development and new urbanization construction. © 2023, The Author(s).