Does China's Belt and Road Initiative improve financial reporting quality?

Chang Xu and Jianguang Hu

Finance Research Letters, 2023, vol. 58, issue PD

Abstract: This paper investigates the substantial effects of the Belt and Road Initiative on financial reporting quality. Using a sample of publicly listed companies in the period of 2010 to 2019, we find that the B&R Initiative can improve financial reporting quality. Further mechanism analysis reveals that the B&R Initiative improves the quality of accounting information through the alleviation of financial constraints and the masking effect of media coverage. Heterogeneity analysis finds that the effects of the B&R Initiative on financial reporting quality exist mainly in key industries involved in the Initiative and in companies with lower capital intensity.

Keywords: Belt and road initiative; Financial reporting quality; Financial constraints; Media coverage (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323010000

DOI: 10.1016/j.frl.2023.104628

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