Research On Regional Aggregation Effect Of Listed Companies' Violations

Since the 18 th National Congress,with the deepening of anti-corruption work,the degree of corruption in various regions of China has shown certain differences.Regional corruption fosters a bad corporate culture by undermining a fair competitive environment,which makes it easier for companies to engage in illegal business operations;in order to cover up the facts of corruption or collusion between government and business,insiders may disclose violations;thus leading to more violations.From this perspective,the regional distribution of listed companies' irregularities has a certain concentration.Chinese enterprises are endowed by the government's institutional environment with strong intervention ability in the market,which is greatly affected by the political environment,and there are differences in the degree of intervention of the governments of the listed companies in China.In addition,the tax burden also affects violations.The heavier the tax burden in the region where the enterprise is located,the less bank loans and financial subsidies the company can obtain,the more stringent government supervision,and the greater operational pressure.Therefore,the listed company with higher tax burden is in violation of regulations.The motivation is stronger.This article divides the listed company's violations into business violations and information disclosure violations.Taking 2,360 Shanghai and Shenzhen A-share listed companies in 2012-2016 as samples,the listed company's violations are used as explanatory variables,with the degree of regional corruption.The political environment and tax burden are the main explanatory variables.The whole sample is divided into the high-level group of marketization process and the low-level group of marketization process.Logit regression is used to test the relationship between regional differences and violations of listed companies.Regional characteristics of the distribution of irregularities.The study found that there is a positive correlation between the violations of listed companies and the degree of regional corruption,that is,the higher the d egree of corruption in the area where the listed company is located,th e greater the possibility of violations,which is more likely in areas with higher marketization.Obviously;the political environment of the location of the listed company has a strong binding force on the violations,and the tax burden of the location of the listed company “grows” the violations to a certain extent,and at the same time it is more significant in non-state-owned enterprises.This research enriches the research on the vi olations of listed companies and their fields,and provides new ideas f or anti-corruption.