Enforcement and the legal cost of voluntary disclosure

Prof. Haibing SHU
Associate Professor, Shanghai Jiao Tong University

Date: 17 May 2024 (Friday)
Time: 15:00 – 16:30
Venue: E22-G015
Host: Prof. Morris LIU, Associate Professor in Accounting


We examine the effect of enhanced regulatory enforcement on firm voluntary disclosure decisions. We use China’s anti-corruption campaign to identify firms subject to enhanced enforcement and scrutiny on the integrity of business relationships and transactions. The results show that affected firms exhibit a sharp and large decrease in their voluntary disclosure of major business relationships following the campaign. The results are stronger for firms which are politically connected and for firms in provinces where corruption was more pervasive prior to the reform. The results highlight an important role of heightened enforcement and scrutiny in shaping firms’ disclosure decisions and show that increased regulatory scrutiny can lead to less transparency by firms.



Prof. SHU is an associate professor (with tenure) in finance at Antai College of Economics and Management. He received his Ph.D in finance from University of Science and Technology of China. Prior to joining Cheung Kong Graudate School of Business (CKGSB) as a research fellow, he studied at University of Virgina as a joint-training Ph.D candidate and a Post-doctoral fellow. He previously served as a Visiting Scholar at The Hong Kong University of Science and Technology after his service at CKGSB. Dr. Shu also has rich industrial experiences.


 All are welcome!