Voluntary Food Safety Disclosure and Government Grants: The Greater Food Approach Perspective

Voluntary information disclosure is an important bridge between firms and external stakeholders. Based on the data of listed food companies from 2008 to 2022, this study examines the impact of voluntary food safety information disclosure on the government's resource allocation decisions from the perspective of the greater food approach. Such disclosure has a resource-acquisition effect and can significantly increase the level of government grants. The aforementioned effect that is "not what it says on the tin" is only effective in the short term and does not allow for sustained benefits to be realized. The mechanism test established that the positive relationship between disclosure and government grants is significantly inhibited by market attention. Further research finds that this positive association is more pronounced among small-scale and ordinary urban firms, with the types concentrated in revenue-related government grants. This research enriches the literature on the economic consequences of voluntary disclosure and provides empirical evidence for the government to accurately screen firms' food safety status and information manipulation.