Abstract
ABSTRACT Drawing on the concept of political path dependence, we hypothesise a positive impact of anti-corruption measures on firm innovation, illustrating how businesses can benefit from both eliminating illegal political ties (‘cleaning house’) and cultivating lawful relationships with the government (‘hosting new guests’). By analysing a sample of A-share listed companies from 2010 to 2015 using the PSM-DID model, we demonstrate that anti-corruption campaigns enhance innovation performance. Specifically, anti-corruption efforts sever the nexus of interests between government and businesses, curbing corporate expenditures on rent-seeking activities. Firms located in regions with stringent governmental oversight have experienced significant improvements in innovation outputs following the implementation of anti-corruption policies, particularly private-owned enterprises. This study provides empirical support for the benefits of anti-corruption from the perspective of political path dependence, offering valuable insights for governments aiming to bolster firm innovation through improved public governance and legal frameworks.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
