From past lies to current misconduct: The long shadow of China's Great Leap Forward

• 成果类型: Article
• 署名作者: Chen, Shuo; Ding, Haoyuan; Lin, Shu; Ye, Haichun
• 署名单位: Fudan University; Shanghai University of Finance & Economics; Shanghai Institute of International Finance & Economics; Chinese University of Hong Kong; The Chinese University of Hong Kong, Shenzhen
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2022.102888
• 发表日期: 2022
• 关键词: Dishonest behavior; social norms; Corporate financial misconduct; Yield over-reporting; Great leap forward

摘要

Using hand-collected data on yield over-reporting during China's Great Leap Forward (GLF) period, we find that GLF over-reporting in a chairperson's province of origin strongly predicts corporate financial misconduct today. Evidence from a variety of identification strategies establishes a causal relationship. We also extend our analyses to other aspects of corporate misconduct and local dishonest behaviors. We show that GLF over-reporting has shifted social norms toward a present-day tolerance for dishonesty. Our findings suggest that wrongdoings by local government officials in the past can lead to adverse effects on people's future behavior in the form of cheating.