Rice Planting and Corporate Misconduct:An Empirical Study Based on Rice Theory
Using the data of misconduct by Chinese listed companies over the period of 2003-18,this paper examines the potential relationship between rice-farming and corporate misconduct and its internal mechanism.The findings reveal that the proportion of rice grown in the CEOs'hometowns is positively associated with the likelihood of corporate misconduct and that the low social trust and high risk-preference cultures brought by rice-farming economy are the transmission mechanism.The cultural influence of Confucianism and rice-farming culture have some substitutional relationgship in corporate misconduct.The higher degrees of the CEOs can inhibit the positive effect of rice-farming chlture on corporate misduct to some degree.Based on the Fraud Triangle Theory,this study also tests the heterogeneity of the influence that rice farming undergoes while facing different operating pressure and misconduct opportunities,and finds that the proportion of rice grown in the CEOs'hometowns plays a greater role in companies with low operating pressure and greater misconduct opportunities.
corporate misconductsouthern rice and northern wheatcultural differenceCEO characteristicscollectivism
万方数据
