Regional criminal offense rates, labor mobility, and firms’ financial generosity

Guanghua Wan, Chunli Zhang, Chang Huang and Yan Wang

Finance Research Letters, 2024, vol. 65, issue C

Abstract: Considering macroeconomic data, this paper focuses on Chinese A-share listed firms from 2011 to 2020 and analyzes the relationship between regional criminal offense rates and corporate financial generosity. Specifically, this paper reveals that regional criminal offense rates improve corporate financial generosity by leading to labor outflows. Nevertheless, heterogeneity exists in the impact of the policy above. The executive team's legal and financial backgrounds and stock ownership can mitigate the impacts of regional crime rates on corporate financial generosity. However, executive remuneration incentives can worsen the issue.

Keywords: Criminal offense rates; Labor mobility; Financial generosity (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324005981

DOI: 10.1016/j.frl.2024.105568

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