This study examines the effects of anti-corruption and equity incentive risk on financial misreporting in the context of China’s unique corporate ownership structure and governance regime.Using a sample comprising 2,...This study examines the effects of anti-corruption and equity incentive risk on financial misreporting in the context of China’s unique corporate ownership structure and governance regime.Using a sample comprising 2,708 cases of financial restatement over the 2007-2017 period.Our key findings suggest that managers’shareholdings are significantly and positively associated with their firms’financial misreporting,and certain equity risk factors dramatically alter Chinese corporate governance.Furthermore,managers’motivation to misreport is significantly more pronounced in non-state owned enterprises(nonSOEs),suggesting that equity incentive risk effects mitigate the"absence of ownership"problem believed to affect SOEs.Managers in highly competitive industries and firms with low institutional ownership are found to be highly motivated to misreport performance.展开更多
文摘This study examines the effects of anti-corruption and equity incentive risk on financial misreporting in the context of China’s unique corporate ownership structure and governance regime.Using a sample comprising 2,708 cases of financial restatement over the 2007-2017 period.Our key findings suggest that managers’shareholdings are significantly and positively associated with their firms’financial misreporting,and certain equity risk factors dramatically alter Chinese corporate governance.Furthermore,managers’motivation to misreport is significantly more pronounced in non-state owned enterprises(nonSOEs),suggesting that equity incentive risk effects mitigate the"absence of ownership"problem believed to affect SOEs.Managers in highly competitive industries and firms with low institutional ownership are found to be highly motivated to misreport performance.
