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DC Field | Value | Language |
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dc.contributor.author | Zhang, Huai | en_US |
dc.contributor.author | Zhang, Jin | en_US |
dc.date.accessioned | 2022-11-11T07:08:01Z | - |
dc.date.available | 2022-11-11T07:08:01Z | - |
dc.date.issued | 2022 | - |
dc.identifier.citation | Zhang, H. & Zhang, J. (2022). Political corruption and accounting choices. Journal of Business Finance & Accounting. https://dx.doi.org/10.1111/jbfa.12646 | en_US |
dc.identifier.issn | 0306-686X | en_US |
dc.identifier.uri | https://hdl.handle.net/10356/162885 | - |
dc.description.abstract | We examine how political corruption affects firms’ accounting choices. We hypothesize and find that firms headquartered in corrupt districts manipulate earnings downwards, relative to firms headquartered elsewhere. Our finding is robust to alternative corruption measures, alternative discretionary accrual measures, alternative model specifications, the instrumental variable approach and difference-in-differences analyses based on firm relocation and high profile cases. We find that firms headquartered in corrupt districts prefer income-decreasing accounting choices and exhibit higher conservatism. Finally, we find that the effect of corruption on earnings management is more pronounced for geographically concentrated firms, for firms without political connections, for firms in politically sensitive industries, for firms with lower transient institutional investor ownership and for firms with less analyst coverage. In sum, our findings suggest that firms respond to corruption by lowering their accounting earnings. | en_US |
dc.description.sponsorship | Ministry of Education (MOE) | en_US |
dc.language.iso | en | en_US |
dc.relation | RG163/17 | en_US |
dc.relation.ispartof | Journal of Business Finance & Accounting | en_US |
dc.rights | © 2022 John Wiley & Sons Ltd. All rights reserved. This is the peer reviewed version of the following article: Zhang, H. & Zhang, J. (2022). Political corruption and accounting choices. Journal of Business Finance & Accounting, which has been published in final form at https://doi.org/10.1111/jbfa.12646. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | en_US |
dc.subject | Business::Accounting | en_US |
dc.title | Political corruption and accounting choices | en_US |
dc.type | Journal Article | en |
dc.contributor.school | Nanyang Business School | en_US |
dc.identifier.doi | 10.1111/jbfa.12646 | - |
dc.description.version | Submitted/Accepted version | en_US |
dc.identifier.scopus | 2-s2.0-85137249317 | - |
dc.subject.keywords | Accounting Choices | en_US |
dc.subject.keywords | Political Corruption | en_US |
dc.description.acknowledgement | Zhang acknowledges the financial support from the National Natural Science Foundation of China (71572038, 71872046, 71872078) and Singapore Ministry of Education (RG163/17). | en_US |
item.fulltext | With Fulltext | - |
item.grantfulltext | embargo_20240823 | - |
Appears in Collections: | NBS Journal Articles |
Files in This Item:
File | Description | Size | Format | |
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Political corruption and accounting choices.pdf Until 2024-08-23 | 1.33 MB | Adobe PDF | Under embargo until Aug 23, 2024 |
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