Anti-corruption and corporate investment: Evidence from financial disclosure laws

We investigate the impact of anti-corruption regulations on corporate investment by leveraging the implementation of global financial disclosure laws. Our findings reveal that, subsequent to the adoption of these laws, there is a reduction in the rate of corporate investment, alongside an enhancement in investment efficiency. This suggests that anti-corruption policies serve to curb firms’ excessive investment, which is often fueled by government subsidies in corrupt environments. Our analysis provides valuable insights into the advantages of anti-corruption laws and carries significant policy implications.