Professor Dongmin Kong, a researcher of the Base, has published a collaborative paper titled "Does government transparency shape firm decentralization? Evidence from a natural experiment in China" in Emerging Markets Review

Abstract:

We take advantage of a recent pilot program of e-government reform in China to study whether and how government transparency affects firm decentralization. We construct a reasonable proxy of firm decentralization to reflect the allocation decision rights on the basis of China's unique setting of mandatory disclosure of financial statements of the parent firms and the entire corporation. We provide supports on the reliability of firm decentralization proxy and present strong evidence that the improvement of government transparency and accountability significantly enhances firm decentralization. A plausible mechanism is that such reform reshapes firms' external business environment and internal operating efficiency. Results are particularly pronounced for firms in areas with low social trust and high corporate attention. Overall, our findings contribute to the research on the effect of government quality on economic activities and organization delegation structure.

Link：https://doi.org/10.1016/j.ememar.2022.100915

Teacher profile

Dongmin Kong, Wen LAN Distinguished Professor and doctoral Supervisor, School of Finance, Zhongnan University of Economics and Law. In 2015, he was selected into the "National Key Talent Plan". Research interests: Chinese capital market, corporate finance. Currently published in Journal of Law and Economics, Review of Finance, Journal of Environmental Economics and Management, Contemporary Accounting Research, Journal of Corporate Finance, Journal of Banking and Finance,China Economic Review,Economic Research Journal, Management World, Journal of Financial Research, China Economic Journal, and hosted a number of National Natural Science funds. Currently, he is also a member of Financial Management Committee of China Society of Management Modernization. National Natural Science Foundation of China Communication Evaluation expert; Member of the editorial Board of Securities Market Herald,Journal of Zhongnan University of Economics and Law, Journal of Accounting and Economics, Luojia Management Review, Financial Science, Contemporary Accounting Review, Jianghan Academic; China Finance Review International, Associate Editor; He also serves as an anonymous reviewer of several authoritative journals at home and abroad, such as Economic Research Journal, Management World and Journal of Financial Research.