Corporate Fraud, Director Turnover, and Corporate Performance in the Chinese Construction Industry

In the challenging and complex environment created by the pandemic, the growth rate of revenue in construction enterprises has slowed. Corporate fraud remains a pervasive and thorny issue in the construction industry. This study used the data on the listed construction companies in China from 2013 to 2021. The results show that corporate fraud significantly negatively affects corporate performance, and director turnover in the same year exacerbates the negative impact of corporate fraud on performance. These findings enrich the understanding of the mechanisms by which corporate fraud affects performance, revealing the impact of board turnover on performance. It provides a valuable reference for corporate policymaking.