Punish One, Teach a Hundred: The Sobering Effect of Peer Punishment on the Unpunished

The authors thank Bo Becker (editor), an associate editor, and two anonymous reviewers for their feedback and guidance. The authors also thank Franklin Allen, Mark Bradshaw, Will Cong, Tony Cookson, Mara Faccio, Ray Fisman, Henry Friedman, Mark DeFond, Vyacheslav (Slava) Fos, Nickolay Gantchev, Mariassunta Giannetti, Xavier Giroud, Zhiguo He, Yue Heng, Yi Huang, Sudarshan Jayaraman, Wei Jiang, Andrew Karolyi, Jonathan Karpoff, Da Ke, Kai Li, Chen Lin, Clark Liu, Miao Liu, Xiumin Martin, Bill Megginson, Roni Michaely, Randall Morck, Dhananjay Nanda, Joseph Pacelli, Jacopo Ponticelli, Shiva Rajgopal, Tao Shu, Zheng (Michael) Song, Dragon Tang, Cong Wang, Yongxiang Wang, Shang-Jin Wei, K.C. John Wei, Wei Xiong, Liyan Yang, Zhishu Yang, Bernard Yeung, Frank Zhou, Hao Zhou, Stefan Zeume, Shan Zhao, Bohui Zhang, and Hong Zhang as well as seminar and conference participants at the 2019 American Finance Association Annual Meeting, the 2019 European Finance Association, the fifth China Europe International Business School Finance/Accounting Symposium, the 2018 China Financial Research Conference, 2018 China International Conference in Finance, the first The Chinese University of Hong Kong-Review of Corporate Finance Studies Conference on Corporate Finance and Financial Intermediation, the 2018 London Business School Accounting Symposium, the 2019 Mitsui Symposium on Comparative Corporate Governance and Globalization, the 2020 National Bureau of Economic Research Chinese Economy Working Group Meeting, the Sun Yat-Sen University Finance International Conference, University of Colorado, University of Kentucky, University of Hong Kong, University of Oklahoma, City University of Hong Kong, and Hong Kong Polytechnic University for valuable comments. All errors are the authors’ own.