Scientific disclosure and corporate misconduct

Abstract

This study examines the relationship between scientific disclosure and corporate misconduct. Through an analysis of comprehensive databases containing core journal publications and documented misconduct cases, we established a significant negative correlation between scientific disclosure and corporate misconduct. This association is particularly evident in firms with publications in English-language core journals. Our findings are corroborated by a series of rigorous robustness tests, including change analyses, instrumental variable estimation, Heckman's two-stage method, and the difference-in-differences approach. Moreover, our investigation into potential mechanisms reveals several pathways through which scientific disclosure may mitigate misconduct. These mechanisms include the attraction of high-quality talent, promotion of technological innovation, establishment of a positive reputation, acquisition of R&D subsidies, and deterrence of opportunistic corporate cultures. Ultimately, our results contribute to a more nuanced understanding of the role of corporate scientific disclosure in reducing misconduct and highlight the beneficial effects of corporate investment in scientific research.