Effects of anti-corruption on firm performance: Evidence from a quasi-natural experiment in China

Kong, Dongmin; Wang, Li; Wang, Maobin

doi:10.1016/j.frl.2017.05.011

Cited by 62 publications

(27 citation statements)

References 6 publications

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“…It has been well documented that SOEs tend to behave differently than non‐SOEs (Megginson et al ., ; Gupta, ; Holden and Jacobsen, ; Zhang et al ., ; Kong et al ., ; Luo et al ., ). Thus, in this section, we further examine whether our results vary between SOE‐ and non‐SOE‐backed platforms.…”

Section: Empirical Results and Discussionmentioning

confidence: 98%

Survival or die: a survival analysis on peer‐to‐peer lending platforms in China

Liu

Zou

Yang

et al. 2019

Accounting & Finance

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This study examines the probability of survival of online peer-to-peer (P2P) lending platforms in China. Our empirical findings show that shareholder's background, platforms' risk management and institutional environment are three major factors that influence the probability of survival of P2P platforms in China. In addition, the effects of risk control and institutional environment are less pronounced in state-owned P2P platforms. We also show that platforms that die from abscondence of owners tend to be more short-lived than others, while platforms that die from liquidity problems are usually due to lack of high-quality risk management techniques.

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Section: Empirical Results and Discussionmentioning

confidence: 98%

Survival or die: a survival analysis on peer‐to‐peer lending platforms in China

Liu

Zou

Yang

et al. 2019

Accounting & Finance

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“…There is an enormous body of academic literature studying the economic impacts of corruption. However, there exist theoretical contradictions of how corruption would be beneficial or detrimental to firm value and firm performance (Kong et al, 2017;Malesky et al, 2020). From the rent-seeking perspective, Lui (1985) argues that corruption may enhance market efficiency and promote performance under the presence of extremely ineffective institutions.…”

Section: Related Literature and Hypotheses Developmentmentioning

confidence: 99%

“…The National Strategy on Anti-Corruption to 2020 of the Vietnamese government constitutes a major step forward in the corruption fight and represents the determination of the nation in improving the institutions of the country. Unlike the intensively studied anti-corruption campaign in China (see, for example, Gan and Xu (2019), Kong et al (2017), Xu and Yano (2017), Zhang (2018), Zhou et al (2020)), the anti-corruption campaign in Vietnam, surprisingly, does not attract attention from researchers and evidence of its impacts on the performance of Vietnam firms remains virtually absent in the literature. As the anti-corruption campaign of Vietnamese authorities shows no sign of slowing down, this study aims to provide an evaluation of how the performance of Vietnamese firms changed during the study period.…”

Section: Introductionmentioning

confidence: 99%

“…In general, previous studies show that public corruption has significant economic impacts on businesses operations and performance (Cai et al, 2011;Malesky et al, 2020;Nguyen & Dijk, 2012) and so does anti-corruption (Kong et al, 2017). Arguments on the impacts of corruption on corporate operations and performance can be classified into two opposite strands of literature.…”

Section: Introductionmentioning

confidence: 99%

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Anti-Corruption Campaign and Firm Financial Performance: Evidence From Vietnam Firms

et al. 2022

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Background Corruption affects businesses in various ways. Anti-corruption, on the other hand, can improve the institutions of the country as well as business operations. Vietnam, as a socialist-oriented country with an ongoing high-profile anti-corruption campaign, provides us a unique setting to evaluate the impacts of anti-corruption on corporate performance. Objectives We address two questions: (1) what is the effect of anti-corruption on the performance of private-owned firms in Vietnam? and (2) how does anti-corruption influence the performance of firms with state ownership (FSOs) in Vietnam? Research design To investigate the impact of anti-corruption on performance of firms with different ownership settings, we use the establishment of the Central Anti-Corruption Steering Committee of Vietnam as a quasi-natural experiment for difference-in-differences analysis. We generate treatment effects of private holding and the state block ownership. To validate the findings, we construct a novel news-based anti-corruption index from Vietnamese online newspapers and use it in a robustness test to evaluate anti-corruption’s impacts on firm performance. Results and Conclusions We find a positive impact of the anti-corruption campaign on private firms’ performance, supporting the social norm perspective of how corruption affects businesses. The empirical results indicate a negative impact of the campaign on FSOs’ performance. The findings suggest that anti-corruption benefits private firms via improving the institutional quality of the country while improving the financial transparency of FSOs. Our study provides a method for measuring anti-corruption which is virtually unobservable and absent in the literature. The findings have implications for policymaking in contemporary Vietnam.

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“…It should be noted that a direct and simple comparison of the differences in enterprises' green R&D investment before and after the implementation of the anti-corruption policy may not be able to identify whether the differences were caused by anticorruption or other factors accurately. Therefore, we utilize the DID model for endogenous treatment (Kong et al, 2017;Tang et al, 2021a, c;Yuan et al, 2021).…”

Section: Endogenous Treatment Resultsmentioning

confidence: 99%

How does anti-corruption affect enterprise green innovation in China’s energy-intensive industries?

Chen

Lin

et al. 2021

Environ Geochem Health

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Rampant corruption exists in China's energy-intensive industries. However, we know little about the nexus of corruption and enterprise green innovation in China's energy-intensive industries. This paper discusses the impact of anti-corruption on enterprises' green innovation and its effect margin. Analyzing the panel data of Chinese listed enterprises in energy-intensive industries from 2009 to 2017, we find that anti-corruption played a positive role in stimulating enterprises' green innovation investments in energy-intensive industries. Then we adopt the instrumental variable approach and difference-indifferences model to alleviate the endogeneity problem. Moreover, we find that research and development investments from state-owned, high-tech enterprises and enterprises in the regions with more government intervention or weaker intellectual property protection were more prominent after the anti-corruption campaign. Finally, political connection played an intermediary role in this process, in which only the government-official political connection worked. Our results highlight the roles of enterprises' attributes and environmental characteristics as important factors in the relationship between anti-corruption and green innovation investments. Policymakers should enhance the control of corruption to boost green innovation in energy-intensive industries.

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Effects of anti-corruption on firm performance: Evidence from a quasi-natural experiment in China

Cited by 62 publications

References 6 publications

Survival or die: a survival analysis on peer‐to‐peer lending platforms in China

Survival or die: a survival analysis on peer‐to‐peer lending platforms in China

Anti-Corruption Campaign and Firm Financial Performance: Evidence From Vietnam Firms

How does anti-corruption affect enterprise green innovation in China’s energy-intensive industries?

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