Does Executive Information Technology Background Curb Corporate Violations?
WANG Shengnian1,2, ZHANG Nan1
1. School of Economics and Management, Shihezi University, Shihezi 832003, China; 2. Research Center for Corporate Governance and Management Innovation, Shihezi University, Shihezi 832003, China
Abstract Using data from A-share listed companies from 2007 to 2023, the paper examines the impact of executive information technology background on corporate violations. Research shows that executive information technology backgrounds inhibit corporate violations. The mechanism analysis indicates that executives’ IT backgrounds inhibit corporate violations by improving corporate governance and alleviating information asymmetry. Heterogeneous analysis reveals that this effect is more pronounced when management shareholding is low, analyst attention is limited, or the legal environment is weak. Further research manifests that in terms of the source of executives’ IT background, the empirical imprint of executives’ IT background has a more significant impact on corporate violations. Additionally, in terms of executive types, the IT background of management and directors has a more significant impact on corporate violations. Moreover, in terms of violation severity, the IT background of executives has a more significant impact on information disclosure violations and business operations violations. This study adds to the literature on the relationship between executive characteristics and corporate violations. It also highlights how firms can benefit from recruiting executives with IT backgrounds to leverage their role in preventing governance violations.
2025, Vol. 42 
