The Effect of Anti-subsidy Actions on Corporate Disclosure of Subsidy Information

Prof. Cheng (Colin) ZENG, Assistant Professor in Accounting, Hong Kong Polytechnic University

Date:         15 March 2023 (Wednesday)
Time:        3:00pm – 4:00pm
Venue:      Online via Zoom
Host:        Prof. Duncan LIU, Assistant Professor of Accounting
Zoom Link: https://umac.zoom.us/j/98591958454


This paper examines the effect of anti-subsidy investigation and penalty (through countervailing duties) on disclosure of government subsidy information by Chinese listed firms. We find that firms reduce disclosure of subsidy information when their exported products are facing anti-subsidy investigation or charged countervailing duties. The effect is stronger when the countervailing duties are higher, when the affected firms have a higher export revenue from the product under investigation or penalty, when the country taking the anti-subsidy action has a worse relationship with China, and when the affected firms export to more countries. The effect persists into three years after the action and spills over to peer firms that export the investigated products to other countries or export similar products.


Prof. Cheng (Colin) Zeng is an Assistant Professor of Accounting at the Hong Kong Polytechnic University. Before joining Hong Kong PolyU, he held a lecturer position at the University of Bristol and a senior lecturer position at the University of Manchester. He has a broad research interest in accounting, finance and economics, such as political and regulatory influences on financial reporting, International Financial Reporting Standards, valuation models, and corporate social responsibility reporting. His research has been published in The Accounting Review, Management Science, Accounting, Organizations & Society, among others. He also serves on the editorial board of British Accounting Review, and as an ad-hoc reviewer for a number of journals, including The Accounting Review and Journal of International Business Studies.

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