Do foreign investors deter corporate fraud? Evidence from China

被引：9
|
作者：
Liang, Quanxi [1 ]
Gao, Wenlian [2 ]
Xie, Hongji [3 ]
机构：
[1] Guangxi Univ, Sch Econ, Nanning, Peoples R China
[2] Northern Illinois Univ, Coll Business, De Kalb, IL 60115 USA
[3] Jinan Univ, Sch Econ, 601 West Huangpu Ave, Guangzhou, Guangdong, Peoples R China
来源：
QUARTERLY REVIEW OF ECONOMICS AND FINANCE | 2022年 / 84卷
基金：
中国国家自然科学基金;
关键词：
Foreign investment; Corporate fraud; Investor protection; SHARE STRUCTURE REFORM; INSTITUTIONAL INVESTORS; ECONOMIC-GROWTH; GOVERNANCE; OWNERSHIP; GLOBALIZATION; LAW; SHAREHOLDERS; GOVERNMENT; QUALITY;
D O I：
10.1016/j.qref.2022.01.002
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper investigates the effect of foreign investment on corporate fraud in China. Using a sample of 2,838 firms over the period of 2004-2016, we find that foreign investment helps reduce the risk of corporate fraud. Specifically, foreign investment decreases the likelihood of committing fraud, the frequency of fraud, and its severity. Further evidence suggests that the effect is largely driven by foreign block investment and investment from countries with strong investor protections. Also, the effect of the phenomenon is more pronounced in state-owned enterprises than in non-state-owned enterprises. Our findings suggest that foreign investors play an active monitoring role in emerging markets. (C) 2022 Board of Trustees of the University of Illinois. Published by Elsevier Inc. All rights reserved.
引用
收藏
页码：92 / 111
页数：20
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