Urban financial institution density and corporate innovation information disclosure

This study examines the impact of urban financial institution density on corporate innovation information disclosure using panel data of listed Chinese firms from 2010 to 2023. Notably, firms in cities with higher financial density disclose more innovation-related data. Mechanism tests indicate that this effect operates through reduced financing constraints, improved information transparency, and increased analyst attention. The effect is more pronounced for firms with stronger internal controls and nonstate-owned enterprises. These findings underscore how local financial development enhances firms’ disclosure incentives.