Title: Government Influence on Corporate Blockchain Disclosures

Speaker: Nancy Su, Professor, The Hong Kong Polytechnic University

Time: 10:00-11:30, November 6th, 2024 (Thursday)

Venue: Room 712, Mingde Business Building(Zhongguancun Campus)

Language: Chinese & English

ABSTRACT:

This paper investigates the impact of China’s blockchain industrial policies on firms’ disclosure practices. Firms increase disclosure of their blockchain-related activities following the staggered rollout of these policies across Chinese provinces, which in turn attracts greater government support. By categorizing disclosures as either detailed (e.g., actual blockchain applications) or vague (e.g., unverifiable blockchain plans), we show that detailed disclosures are associated with subsequent increases in patenting, while vague disclosures correspond to higher spending on both R&D and perks aimed at building government relations. The rise in R&D spending is concentrated among firms facing high proprietary costs, which use vague disclosures to protect their blockchain innovations. Firms without capital market financing needs drive the increase in relation-building expenditures; they use vague disclosures to garner government support but subsequently experience performance declines. Overall, our findings suggest that firms strategically adjust their blockchain disclosures in response to government industrial policies.

SHORT BIOGRAPHY:

Professor Nancy Lixin Su is the Head and full professor at the School of Accounting and Finance, The Hong Kong Polytechnic University. Before re-joining PolyU, she has taught at Lingnan University. Prof Su has a broad research interest in disclosure, reporting, and auditing. She has also worked creatively across accounting, supply chain, and social network. Professor Su has published in prestigious accounting journals, such as Journal of Accounting and Economics, The Accounting Review, and in other business journals, including Management Science and Journal of International Business Studies. She is the editor-in-chief of the Journal of Contemporary Accounting and Economics and an associate editor of Journal of Financial Stability and Corporate Governance: An International Review. She has also served as an examiner for other Hong Kong universities, the investigation panel of HKICPA and as a panel member of GRF/ECS funding (business panel). Professor Su completed her undergraduate studies at Shanghai University of Finance and Economics and received PhD in Management with a concentration in Accounting from The University of Texas at Dallas.