On the relationship between protection of proprietary information and transparency of accounting information

This paper explores the interplay between proprietary information leakage, intellectual property protection, and accounting transparency using data from A-share listed manufacturing companies (2019-2021). Findings include: 1) Firms with a higher risk of R & D information leakage show less accounting transparency, as management seeks to protect proprietary information and uphold their interests. 2) In regions with strong intellectual property protection, the incentive for management to reduce accounting transparency to safeguard proprietary information intensifies. Intellectual property protection level significantly impacts corporate accounting information disclosure.

Automated summary

This paper examines the relationship between proprietary information leakage, intellectual property protection, and accounting transparency based on data from A-share listed manufacturing companies (2019-2021). The findings reveal that firms with a higher risk of R & D information leakage tend to have lower accounting transparency as managers aim to safeguard proprietary information and their interests. Moreover, in regions with stronger intellectual property protection, there is an increased incentive for management to reduce accounting transparency in order to protect proprietary information. The level of intellectual property protection significantly affects corporate accounting information disclosure.