This paper investigates the effectiveness of internal control quality on corruption activities by managers using a sample of Chinese state-owned enterprises. Our empirical evidence shows that firms with high-quality internal controls are associated with less corruption activities, measured as...

This paper investigates the intra-industry spillover effects of corporate scandals in China. Using corporate scandal announcements, we show how a contagion effect spreads to peer firms depending on the quality of corporate governance and political connections at these firms. Good corporate...