Scientific disclosure and corporate misconduct

Qifeng Zhao, Dongmin Kong and Qianfeng Luo

Pacific-Basin Finance Journal, 2024, vol. 88, issue C

Abstract: This study examines the relationship between scientific disclosure and corporate misconduct. Through an analysis of comprehensive databases containing core journal publications and documented misconduct cases, we established a significant negative correlation between scientific disclosure and corporate misconduct. This association is particularly evident in firms with publications in English-language core journals. Our findings are corroborated by a series of rigorous robustness tests, including change analyses, instrumental variable estimation, Heckman's two-stage method, and the difference-in-differences approach. Moreover, our investigation into potential mechanisms reveals several pathways through which scientific disclosure may mitigate misconduct. These mechanisms include the attraction of high-quality talent, promotion of technological innovation, establishment of a positive reputation, acquisition of R&D subsidies, and deterrence of opportunistic corporate cultures. Ultimately, our results contribute to a more nuanced understanding of the role of corporate scientific disclosure in reducing misconduct and highlight the beneficial effects of corporate investment in scientific research.

Keywords: Scientific disclosure; Corporate misconduct; Technological innovation; Human capital; Reputation effects (search for similar items in EconPapers)
JEL-codes: D22 G34 M54 O31 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:88:y:2024:i:c:s0927538x24002993

DOI: 10.1016/j.pacfin.2024.102547

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