Informal regulation by nongovernmental organizations enhances corporate compliance: Evidence from a nationwide randomized controlled trial in China
AbstractAs a key component of informal regulation, nongovernmental organization (NGO) monitoring reduces the cost of government oversight and increases the visibility of corporate performance to stakeholders, thereby promoting corporate compliance. We conduct a nationwide randomized controlled trial (RCT) to investigate the causal effect of NGO monitoring on corporate compliance as measured by the environmental information disclosure (EID) of China's highly polluting listed companies.