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Regional big data development and corporate financial fraud

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  • Yin, Lei
  • Sun, Guanglin
  • Kong, Tao

Abstract

This study establishes a theoretical framework examining how regional big data development on advancement influences corporate financial fraud. Through empirical analysis utilizing data from China's A-share listed companies 2014 to 2021, the research reveals that fostering big data development inhibits financial fraud in corporations. This effect is attributed to the alleviation of corporate financing constraints and reduction in financial leverage. Regional big data development can reduce corporate financial fraud by lowering agency costs. Heterogeneity tests indicate a notable impact in large enterprises, state-owned entities, and enterprises in high marketization regions, whereas the effect is not significant in small enterprises, private firms, and high marketization areas.

Suggested Citation

  • Yin, Lei & Sun, Guanglin & Kong, Tao, 2025. "Regional big data development and corporate financial fraud," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:pacfin:v:90:y:2025:i:c:s0927538x25000307
    DOI: 10.1016/j.pacfin.2025.102693
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