Institutions and Corporate Reputation: Evidence from Public Debt Markets

Gu, Xian; Hasan, Iftekhar; Lu, Haitian

doi:10.1007/s10551-021-05020-x

Cited by 11 publications

(4 citation statements)

References 76 publications

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“…The existence of both peer-concealing effect of community fraud and peer-hinting effect of community punishment extends the conclusion of Gu et al (2022), arguing a possible substitute between legal and cultural forces in disciplining misconduct in emerging markets: fraudulent cultural forces tend to conceal fraud, while legal forces rebuild the moral orientation through cultural force.…”

Section: Empirical Analysissupporting

confidence: 71%

“…Second, we examine the vicarious-punishment theory under specific conditions (Yiu et al, 2014, 2018), and extend the defection against alliance partners’ misbehavior to a more specific reaction (Lee & Zhong, 2020a), namely the peer-hinting effect. Third, we not only verify the effectiveness of the fraud triangle theory and trust triangle theory in developing countries (Cao & Zhang, 2021; Gu, Hasan, & Lu, 2022), but also explain how their pillars possibly interact. Fourth, we contribute to the social network literature by investigating how closely connected social network subgroups, namely communities, react to fraud and punishment (Bao et al, 2019).…”

Section: Introductionmentioning

confidence: 67%

“…Third, we not only verify the effectiveness of the fraud triangle theory and trust triangle theory in developing countries and corporate fraud studies but also explain how their pillars possibly interact. We apply fraud triangle theory and trust triangle theory with corporate social-network-community transmission in China, the largest developing country, extending the already developed applications (Cumming et al, 2021;Holzman et al, 2021;Schuchter & Levi, 2016, and support the emerging usage in developing areas (Cao & Zhang, 2021;Gu et al, 2022). During our application of fraud triangle theory and trust triangle theory, we interpreted their three pillars and three legs with specific concepts and explained the potential mechanisms using theories such as social learning and social support.…”

Section: Theoretical Implicationsmentioning

confidence: 99%

“…Huang, Lin, Chiu, and Yen (2017) attempted to identify financial statement factors using the fraud triangle theory, and Cao and Zhang (2021) constructed a fraud triangle to study a Chinese case. The trust triangle is a rather new concept (Dupont & Karpoff, 2020) and has drawn much attention (Cumming, Hornuf, Karami, & Schweizer, 2021; Gu et al, 2022; Karpoff, 2021).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

See 3 more Smart Citations

Fraud Transmission Mechanisms within Community: Peer Concealing and Hinting among Chinese Listed Corporations

Zhang,

Feng,

Bai

et al. 2023

Manag. Organ. Rev.

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We explored the transmission mechanisms of corporate fraud and its punishments within social network communities. Using fraud triangle theory and trust triangle theory, we hypothesize four transmitting channels of how fraud commission and detection are affected by peers’ fraud and punishment. Based on Chinese listed corporations from 2008 to 2018, we first construct and detect interlocked social network communities with a community-detecting algorithm, and then examine hypotheses using a bivariate probit model with partial observability. Our findings indicate that peer-concealing and -hinting effects exist within social network communities. The peer-concealing effect decreases the likelihood of being detected when committing fraud, for those with more and closer fraudulent peers. The peer-hinting effect increases the likelihood of being detected when committing fraud, for those with more and closer punished peers. There is no evidence to support peer-contagion and vicarious-punishment effects. Thus, an improved understanding of the transmission mechanism of corporate fraud commission and detection within communities is provided to prevent and detect corporate fraud. In addition, stakeholders and regulators should be aware of the deviant subculture and social distancing in social network communities.

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Section: Empirical Analysissupporting

confidence: 71%

Section: Introductionmentioning

confidence: 67%

Section: Theoretical Implicationsmentioning

confidence: 99%

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

See 2 more Smart Citations

Fraud Transmission Mechanisms within Community: Peer Concealing and Hinting among Chinese Listed Corporations

Zhang,

Feng,

Bai

et al. 2023

Manag. Organ. Rev.

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The influence of supplier financial violations on clients' environmental, social, and governance performance: Evidence from China's manufacturing industry

Hu,

Zheng,

et al. 2024

Corp Soc Responsibility Env

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The antecedents of environmental, social, and governance (ESG) performance have been extensively studied, yet the impact of supplier behavior has been overlooked. By analyzing data from China's manufacturing industry (2013–2020), we find that suppliers' financial violations enhance the overall ESG performance of client firms, with state ownership further reinforcing this relationship. By further examining the ESG dimensions, our study reveals an asynchronous pattern in firms' performance enhancements. Specifically, supplier financial violations significantly boost client firms' social and governance performance, while state ownership attenuates the positive relationship between supplier financial violations and governance performance. Ultimately, our study establishes a crucial link between the conduct of stakeholders within the supply chain and the firm ESG performance. Our findings also facilitate a more comprehensive assessment of the risks associated with supplier financial violations, aiding decision‐makers in shaping and implementing ESG‐related strategies for firms.

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The Ethics of Blockchain in Organizations

Sharif

Ghodoosi

2022

J Bus Ethics

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Blockchain is an open digital ledger technology that has the capability of significantly altering the way that people operations (i.e. human resource management) operate in organizations. This research takes a first step in proposing several ways in which the blockchain technology can be used to improve current organizational practices, while also considering the ethical implications. Specifically, the paper examines the role that blockchain technology plays in three primary areas of people operations: (1) entry to the organization (via recruitment and selection), (2) intraorganizational processes (including compensation via smart contracts, retention and motivation via shared leadership and conflict management via network-based dispute resolution, and performance management), and (3) exit (offboarding). In each section, the paper reviews the ethical implications from the lenses of virtue ethics, utilitarianism, deontology and contractarianism. The paper concludes that in whole the implementation of blockchain technology in people operations processes can create a more ethical work environment. However, careful implementation is necessary and requires extensive examination of ethical implications in advance.

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Institutions and Corporate Reputation: Evidence from Public Debt Markets

Cited by 11 publications

References 76 publications

Fraud Transmission Mechanisms within Community: Peer Concealing and Hinting among Chinese Listed Corporations

Fraud Transmission Mechanisms within Community: Peer Concealing and Hinting among Chinese Listed Corporations

The influence of supplier financial violations on clients' environmental, social, and governance performance: Evidence from China's manufacturing industry

The Ethics of Blockchain in Organizations

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