Can Alcohol Facilitate Information Manipulation in China? A Social Norm Perspective

• DOI: 10.2139/ssrn.4143966
• Publication Date: 2022-07-12T20:07:38Z
• Authors: Zhe Li; Massimo Massa; Nianhang Xu; Hong Zhang

We examine whether information manipulation by firms may reflect fundamental cooperation conventions induced social norms in China. Consistent with this notion, we find that China’s leading related to alcohol consumption and drinking enhance earnings manipulation. An analysis of toxic scandals supports a causal interpretation. Further evidence suggests the influence come from negative externality it creates, which is propagated corporate leaders can be attenuated only government campaigns rather than market-oriented institutions. Our results manifest norm resist market-based cooperation, has important normative implications.