The business environment has an important impact on the strategic decision-making of enterprises. Based on the systematic analysis of the internal mechanism of business environment optimization affecting corporate irregularities, this paper conducts an empirical test with the help of China's business environment report from 2017 to 2021 and the actual data of Shanghai and Shenzhen A-share listed companies. Through research, it is found that optimizing the business environment helps to curb corporate violations ; the heterogeneity test shows that compared with some non-state-owned enterprises, the optimization of the business environment has a more obvious inhibitory effect on the violations of state-owned enterprises ; the test of the mechanism of action finds that optimizing the business environment can inhibit corporate violations by improving the quality of internal control ; further analysis of the impact of the six sub-environments of the business environment on corporate violations found that the rule of law environment, tax burden and infrastructure environment have a strong inhibitory effect on corporate violations. The conclusion of this paper provides a reference for continuously optimizing the business environment and curbing corporate violations.

Mengdi Guo. The Impact of Business Environment Optimization on Corporate Violations. Academic Journal of Business & Management (2024) Vol. 6, Issue 2: 47-53. https://doi.org/10.25236/AJBM.2024.060207.

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