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Does China's Belt and Road Initiative improve financial reporting quality?

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  • Xu, Chang
  • Hu, Jianguang

Abstract

This paper investigates the substantial effects of the Belt and Road Initiative on financial reporting quality. Using a sample of publicly listed companies in the period of 2010 to 2019, we find that the B&R Initiative can improve financial reporting quality. Further mechanism analysis reveals that the B&R Initiative improves the quality of accounting information through the alleviation of financial constraints and the masking effect of media coverage. Heterogeneity analysis finds that the effects of the B&R Initiative on financial reporting quality exist mainly in key industries involved in the Initiative and in companies with lower capital intensity.

Suggested Citation

  • Xu, Chang & Hu, Jianguang, 2023. "Does China's Belt and Road Initiative improve financial reporting quality?," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323010000
    DOI: 10.1016/j.frl.2023.104628
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