An Empirical Study On The Effect Of Anti-corruption On The Value Of Listed Companies In China

Throughout the ages,corruption has been a “chronic illness” in every society that hinders economic development and undermines people's interests.Since the reform and opening up,our country has experienced decades of rapid economic growth,with an average annual GDP growth rate of 9%.However,with the rapid economic development,the issue of corruption in our country is also increasingly becoming a topic of concern.In the ranking of the International Corruption Perceptions Index,our country has always been in a backward position.China's unique phenomenon of high growth and high corruption has caused more and more scholars to conduct research to explore the relationship between corruption and economic growth,and whether corruption can promote or inhibit the economy? Or is there a deeper relationship between corruption and economic growth?Looking at the research on corruption at home and abroad,the opinions on the role of corruption in economic growth are not the same.There are two kinds of mainstream opinions.One is the theory of corruption is favorable,that corruption in the commercial activities as a "lubricant" role in promoting economic development and increase corporate value.The second is the theory of harmful corruption.It believes that the existence of corruption is a “sandstone” on the road to enterprise development,and it has an inhibitory effect on the development of the economy and reduces the value of the enterprise.However,more and more scholars have viewed the impact of corruption on the economy more and more from a dialectical perspective.The relationship between the two is not a simple promotion or inhibition.But also with the social and economic environment at that time.Under different social environments,the relationship between corruption and economic growth will also change.After the Party's 18 th meeting,the new leadership collective with General Secretary Xi Jinping as the core clearly stated that it is necessary to carry out anti-corruption campaigns.A series of measures such as the promulgation of the eight provisions,the education campaign for the mass line of the party,and the promotion of the practice of economy and standard official reception are all signals the party's determination to fight corruption.The anti-corruption campaign is large-scale and extensive in scope and ranks high among officials of the Lamma government and surpasses any previous anti-corruption campaign.Therefore,it is necessary to carry out an economic test on the results of this anti-corruption so as to better evaluate the effectiveness of anti-corruption and make more effective suggestions on anti-corruption work in the future.This article first uses the method of event study to study the investor's view on anti-corruption by using the stock price fluctuations of the listed companies before and after the introduction of the "Eight Provisions".From the results,the excess cumulative yields on the 3-day,7-day,11-day,21-day,and 37-day before and after the introduction of the eight regulations fell by 1.47%,1.63%,5.25%,9.34%,and 10.55%,respectively significant at the 1% level.The sub-sample test results show that the average daily excess return rate of high-corruption companies is significantly lower than that of low-corruption companies,indicating that investors are pessimistic about anti-corruption policies and believe that the value of enterprises after anti-corruption will be damaged,and high-corruption enterprises will suffer more damage.After that,using the data of the annual reports of listed companies in 2012 and 2013,uses the double difference method to study the changes of the corporate values of high-corruption companies and low-corruption companies before and after anti-corruption.As a result,the corporate value of high-corruption companies has dropped significantly,indicating that anti-corruption policies will damage corporate value in the short term.In order to explore the ways in which corruption can affect corporate value,this paper considers corruption as a "lubricant" and "protection fee" point of view,and believes that the existence of corruption will increase the company's financing capacity and reduce the company's tax burden.Extracting data and constructing a dual-difference model,the empirical results show that the financing capacity of high-corruption enterprises after anti-corruption will be significantly reduced,and its tax burden will increase significantly.This paper is only based on the data of 2012 and 2013,and the conclusion can only be used for the short-term effect.However,the long-term effect still needs to be empirically verified.