Studies from Sun Yat-sen University Add New Findings in the Area of Economics (Digital Currency As a “watchdog”Central Bank Digital Currency and Corporate Misconduct): Economics

2026 MAY 06 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on Economics. According to news reporting from Zhuhai, People’s Republic of China, by NewsRx journalists, research stated, “This study examines the impact of central bank digital currency (CBDC) on corporate misconduct, including accounting fraud, fund misappropriation, disclosure manipulation, and inappropriate trading activities. Leveraging the gradual rollout of the Electronic Chinese Yuan (e-CNY) across China, we find that CBDC adoption reduces misconduct among treatment firms in pilot regions compared to control firms.”

The news correspondents obtained a quote from the research from Sun Yat-sen University, “Grounded in fraud triangle theory, our mechanism analyses indicate that e-CNY’s transparency, traceability, and immutability diminish incentives, reduce opportunities, and deter the rationalization of corporate misconduct. Consequently, managers exhibit a lower propensity to engage in accounting fraud, fund misappropriation, and disclosure manipulation. Further analyses demonstrate that reduced corporate misconduct, driven by e-CNY adoption, significantly lowers stock price crash risk.”

According to the news reporters, the research concluded: “Overall, our findings highlight the potential of CBDCs to serve as an effective ‘watchdog’ in curbing corporate fraudulent behavior.”

This research has been peer-reviewed.

For more information on this research see: Digital Currency As a “watchdog”Central Bank Digital Currency and Corporate Misconduct. Journal of Business Research, 2026;210. Journal of Business Research can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; Journal of Business Research - http://www.journals.elsevier.com/journal-of-business-research/)

Our news journalists report that additional information may be obtained by contacting Guanglong Zhang, Sun Yat-sen University, Int Sch Business & Finance, Zhuhai, People’s Republic of China. Additional authors for this research include Chuyu Wang and Kam C. Chan.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jbusres.2026.116116. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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