Freedom of Speech and Government Contracts: Evidence from Anti-SLAPP
Prof. Luofan (Luther) BU
Assistant Professor in Accounting
School of Business, MUST
Date: 18 May 2026 (Monday)
Time: 13:00-14:00
Venue: FBA Lobby
Abstract
This paper examines how the protection of freedom of speech impacts government procurement contracting. Using the staggered adoption of anti-SLAPP laws as an exogenous shock to state-level protection of freedom of speech, we find that firms in anti-SLAPP states experience a significant decline in both the likelihood and the value of receiving federal contracts from their lobbied agencies. We hypothesize that this phenomenon occurs because heightened public scrutiny in anti-SLAPP states increases exposure of potential contracting irregularities (e.g., delays, cost overruns, or favoritism), thereby reducing the incentives for government agencies to allocate procurement contracts to their favored firms in those states. Consistent with this mechanism of strengthening public monitoring, we find that the main effects are more pronounced within firms that face greater monitoring and within regions that have greater media penetration. Further, we show that the reduction is driven by government agencies that are exposed to more public attention and more revolving door opportunities. Finally, we find that firms in anti-SLAPP states receive fewer high-risk and discretionary contracts. In contrast, they receive more competitive and performance-based contracts. Overall, our findings suggest that protecting free speech and the ability to discuss openly about public affairs without being threatened can constrain opaque procurement practices, which in turn reduced inefficient contracting practices and improves the accountability of the government procurement system.
About the speaker
Prof. Luofan (Luther) Bu is an Assistant Professor in Accounting at the School of Business, Macau University of Science and Technology (MUST). His research interests center around bank loan contracts, corporate disclosure, corporate social responsibility, and human capital in accounting. Prof. Bu’s work has been published in the journals, such as Journal of Corporate Finance and International Journal of Accounting Information Systems.
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