IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v199y2025i1d10.1007_s10551-024-05825-6.html
   My bibliography  Save this article

Financial Shared Service Centers and Corporate Misconduct: Evidence from China

Author

Listed:
  • Wang Dong

    (Zhejiang University)

  • Yuan Meng

    (Zhejiang University)

  • Jun Chen

    (Zhejiang University)

  • Yun Ke

    (University of Texas at El Paso)

Abstract

This paper examines the effect of financial shared service centers (FSSCs) on corporate misconduct. Using a sample of Chinese public companies with hand-collected FSSC data, we find that the adoption of FSSCs is negatively associated with the likelihood and frequency of corporate misconduct. The results hold to a battery of robustness tests. Moreover, we show that the negative association between FSSCs and corporate misconduct is more pronounced in firms that have no management equity ownership, disclose internal control weaknesses, and have more subsidiaries. Additional analyses indicate that FSSCs can help mitigate both disclosure-related and nondisclosure-related misconduct.

Suggested Citation

  • Wang Dong & Yuan Meng & Jun Chen & Yun Ke, 2025. "Financial Shared Service Centers and Corporate Misconduct: Evidence from China," Journal of Business Ethics, Springer, vol. 199(1), pages 113-139, June.
    • Handle: RePEc:kap:jbuset:v:199:y:2025:i:1:d:10.1007_s10551-024-05825-6
    DOI: 10.1007/s10551-024-05825-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-024-05825-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-024-05825-6?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.

    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:kap:jbuset:v:199:y:2025:i:1:d:10.1007_s10551-024-05825-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.