The impact of local corruption on firms' narrative R&D disclosures

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance Pub Date : 2025-06-23 DOI:10.1016/j.jcorpfin.2025.102841

Rui Huang , Xuejun Jiang , Leonard Leye Li , Louise Yi Lu , Yangxin Yu

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Abstract

This study examines the impact of local corruption on firms' narrative research and development (R&D) disclosures in the United States. We find that firms in more corrupt areas include fewer R&D sentences in their 10-K filings, and these sentences contain less numerical and forward-looking information. Our results hold across various measures of local corruption and R&D disclosures and remain robust after controlling for firms' R&D activities, implementing fixed effects, using difference-in-differences tests, and applying instrumental variable analysis. Additionally, the effects are more pronounced for firms with concentrated operations in their headquarters states and for firms whose R&D disclosures closely relate to future earnings. However, they are less pronounced for firms with CEOs politically aligned with the state's incumbent party and when the benefit of resolving market dispersion from firms' R&D disclosure is high. Overall, our findings indicate that local corruption adversely affects firms' narrative R&D disclosures.

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地方腐败对企业叙述性研发披露的影响

本研究考察了美国地方腐败对公司叙述性研发披露的影响。我们发现，在腐败程度较高的地区，公司在其10-K文件中包含的研发语句较少，这些语句包含的数字和前瞻性信息较少。我们的研究结果适用于地方腐败和研发披露的各种衡量标准，并且在控制了企业的研发活动、实施固定效应、使用差异中差异检验和应用工具变量分析后仍然稳健。此外，对于业务集中在总部所在州的公司，以及研发披露与未来收益密切相关的公司，这种影响更为明显。然而，对于那些首席执行官在政治上与国家执政党结盟的公司，以及当公司披露研发信息对解决市场分散的好处很高时，这种影响就不那么明显了。总体而言，我们的研究结果表明，地方腐败对公司的叙事研发披露产生了不利影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Corporate Finance BUSINESS, FINANCE-

CiteScore

11.80

自引率

3.30%

发文量

期刊介绍： The Journal of Corporate Finance aims to publish high quality, original manuscripts that analyze issues related to corporate finance. Contributions can be of a theoretical, empirical, or clinical nature. Topical areas of interest include, but are not limited to: financial structure, payout policies, corporate restructuring, financial contracts, corporate governance arrangements, the economics of organizations, the influence of legal structures, and international financial management. Papers that apply asset pricing and microstructure analysis to corporate finance issues are also welcome.