Productivity
Productivity: More with Less by Better Available resources are scarce. To sustain our society's income and living standards in a world with ecological and demographic change, we…
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Archive
Media Response Archive 2021 2020 2019 2018 2017 2016 December 2021 IWH: Ausblick auf Wirtschaftsjahr 2022 in Sachsen mit Bezug auf IWH-Prognose zu Ostdeutschland: "Warum Sachsens…
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Behaviour
The maths behind gut decisions First carefully weigh up the costs and benefits and then make a rational decision. This may be the way we want it to be. But in reality, invisible…
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Research Clusters
Three Research Clusters Research Cluster "Economic Dynamics and Stability" Research Questions This cluster focuses on empirical analyses of macroeconomic dynamics and stability.…
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Membership
Membership Five Good Reasons for Becoming a Member of the Halle Institute for Economic Research (IWH) The Halle Institute for Economic Research (IWH) - Member of the Leibniz…
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Imprint
Imprint and Disclaimer Imprint Institution and Address Halle Institute for Economic Research – Member of the Leibniz Association Kleine Märkerstraße 8 D-06108 Halle (Saale),…
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Speed Projects
Speed Projects On this page, you will find the IWH EXplore Speed Projects in chronologically descending order. 2021 2020 2019 2018 2017 2016 2015 2014 2022 SPEED 2022/02…
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Ludwig (Interview)
Von der CIA und einem Glas Rotwein ... Prof. Dr. Udo Ludwig über die Anfänge und Entwicklungen des IWH Der Kern der IWH-Gründungsmannschaft kam aus dem Institut für Angewandte…
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Gross domestic product
Gross domestic product Gross domestic product (GDP) includes the value of all goods and services produced in an economic area during a specific period of time. It is defined as an…
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Institutions and Corporate Reputation: Evidence from Public Debt Markets
Xian Gu, Iftekhar Hasan, Haitian Lu
Journal of Business Ethics,
No. 1,
2023
Abstract
Using data from China’s public debt markets, we study the value of corporate reputation and how it interacts with legal and cultural forces to assure accountability. Exploring lawsuits that change corporate reputation, we find that firms involved in lawsuits experience a decrease in bond values and a tightening of borrowing terms. Using the heterogeneities in legal and social capital environments across Chinese provinces, we find the effects are more pronounced for private firms, firms headquartered in provinces with low legal protections, and firms headquartered in provinces with high social capital. The results show that lawsuits that allege misconduct are associated with reputational penalties and that such penalties serve as substitutes for legal protections and as complements to cultural forces to provide ex post accountability and motivate ex ante trust.
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