Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Session Overview |
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SUN 2-2: Disclosure and Transparency
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Unveiling the Fog of Law: Judicial Transparency and Entrepreneurship Tsinghua University, PBC School of Finance Exploiting plausibly exogenous variation in litigation information disclosure generated by mandated online publication of court decisions in China, we examine the effect of judicial transparency on entrepreneurship. We show that enhanced judicial transparency promotes entry into entrepreneurship. The effect is more pronounced in industries that are historically more prone to litigation, especially those more inclined to be plaintiffs. Increased access to credit finance, reshaped beliefs about the quality of institutions and enhanced technology-driven legal services are three plausible underlying channels through which judicial transparency reduces legal uncertainty and promotes entrepreneurship. Judicial transparency improves financial, operating, and innovation performance of entrepreneurial firms. Overall, our findings highlight the importance of a transparent legal system in shaping entrepreneurial ecosystems via its nuanced effects on uncertainty reduction.
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