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Social trust and food scandal exposure: Evidence from China

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Food safety problems are drawing increasing attention after the occurrence of repeated food scandals in China. The literature has found that social trust, a non-institutional factor, is an important factor in disciplining dishonest behaviour and improves the media's incentives to report. In this paper, we develop a model to investigate the dual effects of social trust-behaviour discipline effect and media enhancing effect-and analyse its interplay with institutional factors on food scandal exposure. The theory is then tested using 2004-2011 food event data. The results show that trust has a significant positive impact on food scandal exposure, which implies that the media enhancing effect plays a dominant role in China. However, this effect is weakened in provinces with a higher level of law enforcement and market development, which suggests that institutional factors are a substitute for social trust in affecting food scandal exposure in China.

Social trustMedia exposureFood safety eventsInstitutional factorsCRASH RISK EVIDENCEMEDIASAFETYCULTURE

Guo, Mengmeng、Liu, Jinge、Yu, Jianyu

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Southwestern Univ Finance & Econ

Univ Edinburgh

2021

China Economic Review

China Economic Review

SSCI
ISSN:1043-951X
年,卷(期):2021.69
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