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ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.10 No.3 pp.7-16
DOI : http://dx.doi.org/10.13106/ijidb.2019.vol10.no3.7.

Determinants of Corporate Anti-Corruption Practice Disclosure: Evidence from Chinese Firms

Hong Yin**,Ruonan Zhang***
* This paper is funded by Philosophy and Social Sciences Research Fund of Jiangsu Province (No. 2018SJA1395) and Talent Introduction Project of Suzhou Vocational University (No.3180138).
** First author, Associate Professor, Department of Accounting, Business School, Suzhou Vocational University, Suzhou, China, Tel: +86-151-8228-1601, E-mail: yinhongcdlg@163.com
*** Corresponding author, Associate, Department of International Trade, Business School, Suzhou Vocational University, Suzhou, China, Tel: +86-158-9557-0299, E-mail: zhrn3700@163.com
January 09, 2019. March 01, 2019. March 05, 2019.

Abstract

Purpose - The purpose of this paper is to investigate the determinants of corporate anti-corruption practice disclosure (ACPD) from the perspective of rent-seeking theory.
Research design, data, and methodology - Data are hand-collected from corporate social responsibility reports (CSRR) issued by 724 A-share listed firms in China. This paper provides an empirical analysis of the relationship between ownership structure and corporate ACPD as well as its moderating role in the institutional environment.
Results - Our findings indicate that rent-seeking is a key factor in influencing corporate ACPD. State-owned enterprises disclose significantly more anti-corruption information than private ones in order to achieve personal promotion of top executives. Monopoly enterprises reported significantly less anti-corruption information than enterprises in competitive industries due to their rent-seeking behavior. The reduction of government intervention and improvement of legal environment are helpful to curb corporate rent-seeking activities and enhance the level of corporate ACPD.
Conclusions - Rent-seeking is an important factor in explaining corporate voluntary disclosure in emerging countries. Institutional environment also plays a moderating role in the relationship between ownership structure and corporate voluntary disclosure. Our results are of interest to policy makers, regulators and market participants that are interested in corporate voluntary disclosure and corruption prevention.

JEL Classifications: G38, M14, M41.

초록


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