How does the deterrence of fraud affect firms’ innovation outputs?

Kun Wang and Jianqiang Chen

Applied Economics Letters, 2023, vol. 30, issue 13, 1723-1727

Abstract: This paper examines how the deterrence of fraud affects firms’ innovation outputs, based on a quasi-experiment of the Whistleblower Program. We find that the deterrence of fraud is positively related to firms’ innovation outputs, both quantitatively and qualitatively. Moreover, its impact is more pronounced when a firm has more information asymmetry or higher employee turnover.

Date: 2023
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DOI: 10.1080/13504851.2022.2081659

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