IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v235y2024ics0165176524000466.html
   My bibliography  Save this article

Does information infrastructure curb corporate R&D manipulation? Evidence from China

Author

Listed:
  • Xiong, Jiacai
  • Yang, Zelin
  • Zhu, Yushu

Abstract

This paper examines the impact of information infrastructure on corporate R&D manipulation. We exploit the staggered rollout of broadband infrastructure in 117 cities under the Broadband China strategy (BCS) as an exogenous positive shock. On a sample of Chinese listed firms from 2010 to 2019, our difference-in-differences results find a significant reduction in R&D manipulation for firms in BCS-pilot cities following the policy implementation. Cross-sectional tests show that the effect of the BCS on R&D manipulation is more pronounced in non-state-owned enterprises, smaller firms, and firms with low coverages of analysts or media. Mechanism analyses indicate that the decline can be attributed to attenuated information asymmetry and eased financial constraints.

Suggested Citation

  • Xiong, Jiacai & Yang, Zelin & Zhu, Yushu, 2024. "Does information infrastructure curb corporate R&D manipulation? Evidence from China," Economics Letters, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:ecolet:v:235:y:2024:i:c:s0165176524000466
    DOI: 10.1016/j.econlet.2024.111562
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176524000466
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2024.111562?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Information infrastructure; R&D manipulation; Information asymmetry; Financial constraints; Broadband China strategy;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:235:y:2024:i:c:s0165176524000466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.