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Open government and corporate misconduct: Evidence from China

Author

Listed:
  • Sun, Zeyu
  • Zhou, Ye
  • Yang, Xiaoguang

Abstract

This study investigates the impact of open government on corporate monitoring. By leveraging the staggered rollout of open government data platforms across various cities in China as a natural experiment, we find that this policy significantly reduces corporate misconduct in cities with the initiative compared to those without. The monitoring effect is driven by enhanced public scrutiny and increased information transparency. Additionally, the impact of open government is more pronounced for firms with lower data acquisition capabilities, state-owned, in more competitive industries, and in regions with higher local government credibility.

Suggested Citation

  • Sun, Zeyu & Zhou, Ye & Yang, Xiaoguang, 2025. "Open government and corporate misconduct: Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000923
    DOI: 10.1016/j.frl.2025.106827
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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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