Can Chinese Lawyers Promote Business Growth?

This paper aims to investigate whether Chinese lawyers promote business growth. We use the intervention effect model to analyze the China Association of Lawyers’ 2014-2019 legal counsel units dynamic monitoring micro data. The results show Chinese lawyers can effectively promote business performance. There is a clear difference in management effectiveness between enterprises with legal counsel units and those without. Enterprises with legal counsel units increase operating income, decrease bad debt loss rates, and significantly improve business performance. Owners’ equity of external legal counsel consultant units is also higher than average. There is a barrier to entry for an enterprise to have a legal counsel unit, and Chinese enterprises with legal counsel units are concentrated in the financial, industrial manufacturing, and public services industries.