We examine how local political corruption affects corporate investment. We find firms in corrupted states produce … significantly less investment. The effect of political corruption on investment is more pronounced in firms with higher investment … corruption on investment lessens after the Dodd-Frank Whistleblower Provision. These findings indicate corruption impedes …

This paper investigates the impacts of board's corruption culture on the financing costs of firms. Evidence shows that … corruption culture in their boards. The results are robust to controlling for the endogenous matching between firms and boards … using a variety of econometric techniques. We further document that the effect of the board's corruption becomes stronger …

Using the recent anti-corruption cases in China as a natural experiment, this study documents that connections with the … removed in an anti-corruption case. However, after the event, their M&A activities decrease significantly, post …

officials' corruption investigations, we find that, on average, investors do not realize that officials under investigation are …

We provide a novel empirical finding that the recent anti-corruption investigations in China are associated with credit … political connection channel, through which the anti-corruption campaign leads to improved credit reallocation …

Using political corruption conviction data from the U.S. Department of Justice, we examine the impact of local … corruption on firms’ debt maturity structure while exploring both demand-side and supply-side explanations. Our results support … the demand-side story and indicate that firms located in high corruption areas utilize less short-term debt to mitigate …

This paper examines how political corruption affects M&A activities. By exploiting the public enforcement of the anti-corruption … corruption increases cross-region takeover activities by 40% and deal volume more than doubles. Further analysis reveals that the … behind these real effects on corporate investments. Reduction in corruption also leads to higher bidder returns and improves …