State-level public corruption in the United States affects firms' value and disclosure policies, according to a new study from The University of Texas at Dallas.
Dr. Steven Xiao, assistant professor of finance, and Dr. Vikram Nanda, O.P. Jindal Distinguished Chair in Finance, studied state-level corruption in the U.S. and its effect on publicly listed firms.
The study, published in the Review of Corporate Finance Studies, found that firms have significantly lower value and informational transparency when located in areas that are more corrupt.