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Local government competition, financial regulation, and embezzlement crime

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  • Huang, Qing
  • Jiao, Jing

Abstract

The empirical analysis utilizes a provincial-level panel dataset covering the period 2012–2023, incorporating 31 administrative regions (excluding Taiwan, Hong Kong, and Macao), this paper employs a fixed-effects model to empirically test the impacts of local government competition and financial regulation on embezzlement crime. The results show that: local government competition promotes embezzlement crime; financial regulation suppresses regional embezzlement crime; financial regulation moderates the relationship between local government competition and embezzlement crime; the impact of local government competition on embezzlement crime exhibits heterogeneity across regions with different levels of urbanization; compared with the central and western regions, the inhibitory effect of financial regulation on embezzlement crime is more pronounced in the eastern region.

Suggested Citation

  • Huang, Qing & Jiao, Jing, 2026. "Local government competition, financial regulation, and embezzlement crime," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025267
    DOI: 10.1016/j.frl.2025.109277
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    References listed on IDEAS

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