Railway draws eyes: the effects of transportation development on production information demand

This paper examines how reductions in information acquisition costs shape investors’ reliance on corporate disclosures. Exploiting the staggered expansion of China’s high-speed rail (HSR) network as a quasi-natural experiment, we find that HSR connections significantly increase investor demand for production-related disclosures in earnings communication conferences. The effect is more pronounced for firms with higher analyst visits and greater media coverage, consistent with enhanced firm visibility. Moreover, increased demand is linked to narrower bid-ask spreads, indicating improved information environments. These results show how infrastructure development complements public information and strengthens market transparency.