How does corporate unethical behavior affect corporate performance?

Abstract

This paper uses data from Chinese listed companies from 2007 to 2022 as an empirical sample to conduct an in-depth and systematic investigation of the relationship between corporate unethical behavior, media sentiment, and corporate performance. Through rigorous empirical analysis, the study finds a significant negative correlation between corporate unethical behavior and corporate performance; media sentiment plays a mediating role in the relationship between corporate unethical behavior and corporate performance, with this mediating effect exhibiting notable heterogeneity between high-tech and non-high-tech enterprises. The quality of corporate information plays a crucial moderating role in the relationship between corporate unethical behavior and corporate performance. The negative correlation between corporate unethical behavior and corporate performance shows significant heterogeneity between loss-making and profit-making enterprises.