Anti-corruption and corporate investment: Evidence from financial disclosure laws

Wendi Huang and Ye Peng

Journal of Corporate Finance, 2025, vol. 92, issue C

Abstract: We investigate the impact of anti-corruption regulations on corporate investment by leveraging the implementation of global financial disclosure laws. Our findings reveal that, subsequent to the adoption of these laws, there is a reduction in the rate of corporate investment, alongside an enhancement in investment efficiency. This suggests that anti-corruption policies serve to curb firms’ excessive investment, which is often fueled by government subsidies in corrupt environments. Our analysis provides valuable insights into the advantages of anti-corruption laws and carries significant policy implications.

Keywords: Anti-corruption; Corporate investment rate; Corporate investment efficiency; Government subsidies (search for similar items in EconPapers)
JEL-codes: G31 H21 K29 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:92:y:2025:i:c:s0929119925000379

DOI: 10.1016/j.jcorpfin.2025.102769

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