Pub Date : 2021-09-06DOI: 10.1080/16081625.2021.1977662
Zhiwen Zhang, Zilong Wang, S. Liang
ABSTRACT In the present study, the misallocation of resources in innovation in the China’s high-tech industry sector was analysed. A model was constructed to measure the misallocation of resources at the level of the department. Based on the model, there is an estimated misallocation of total resources, capital, and labour, respectively. The empirical findings show that there is a misallocation of innovation resources in the high-tech industry sector, with a general trend of fluctuation from 45.73% in 2009 to 7.85% in 2016. The misallocation of resources caused by labour is greater than capital. Government intervention has a significant negative impact on the misallocation of resources in innovation. An increase in the share of SOEs in an industry will deepen the misallocation.
{"title":"The effect of government intervention on the resource misallocation in innovation: ownership differences","authors":"Zhiwen Zhang, Zilong Wang, S. Liang","doi":"10.1080/16081625.2021.1977662","DOIUrl":"https://doi.org/10.1080/16081625.2021.1977662","url":null,"abstract":"ABSTRACT In the present study, the misallocation of resources in innovation in the China’s high-tech industry sector was analysed. A model was constructed to measure the misallocation of resources at the level of the department. Based on the model, there is an estimated misallocation of total resources, capital, and labour, respectively. The empirical findings show that there is a misallocation of innovation resources in the high-tech industry sector, with a general trend of fluctuation from 45.73% in 2009 to 7.85% in 2016. The misallocation of resources caused by labour is greater than capital. Government intervention has a significant negative impact on the misallocation of resources in innovation. An increase in the share of SOEs in an industry will deepen the misallocation.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"1 1","pages":"230 - 246"},"PeriodicalIF":1.1,"publicationDate":"2021-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83123962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-06DOI: 10.1080/16081625.2021.1976227
Chongqing Guo, Huisu Lai, Yalin Jiang, Yingyu Wu
ABSTRACT The improvement of environmental performance (EP) of heavily polluting (HP) firms is critical to green development in China. In this research, we examine the impact of debt finance on HP firms’ EP in the context of China’s Green Credit Guidelines (GCGs) policy. Debt finance was found to have a positive impact on HP firms’ EP, and this finding is robust to a battery of tests. Additional tests reveal that this impact is exerted through corporate environmental investment. Moreover, our results suggest that the positive impact strengthens as government support increases. The heterogeneity analysis shows that the positive association between debt finance and EP of HP companies is more prominent in state-owned enterprises and HP firms located in the central and western regions. The above conclusions provide policy implications for the authorities of emerging economies seeking sustainable development.
{"title":"Debt finance and environmental performance of heavily polluting companies in China: the perspective of the green credit guideline policy","authors":"Chongqing Guo, Huisu Lai, Yalin Jiang, Yingyu Wu","doi":"10.1080/16081625.2021.1976227","DOIUrl":"https://doi.org/10.1080/16081625.2021.1976227","url":null,"abstract":"ABSTRACT The improvement of environmental performance (EP) of heavily polluting (HP) firms is critical to green development in China. In this research, we examine the impact of debt finance on HP firms’ EP in the context of China’s Green Credit Guidelines (GCGs) policy. Debt finance was found to have a positive impact on HP firms’ EP, and this finding is robust to a battery of tests. Additional tests reveal that this impact is exerted through corporate environmental investment. Moreover, our results suggest that the positive impact strengthens as government support increases. The heterogeneity analysis shows that the positive association between debt finance and EP of HP companies is more prominent in state-owned enterprises and HP firms located in the central and western regions. The above conclusions provide policy implications for the authorities of emerging economies seeking sustainable development.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"1 1","pages":"212 - 229"},"PeriodicalIF":1.1,"publicationDate":"2021-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83636245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-20DOI: 10.1080/16081625.2021.1952084
Yuto Yoshinaga, Makoto Nakano
ABSTRACT
Our study proposes the usage of aggregate earnings to forecast future GDP growth. Using empirical analyses with global quarterly data, we investigate whether aggregate-level profitability drivers, which are components of aggregate earnings, are relevant for forecasting GDP growth. After confirming that aggregate-level profitability drivers are useful for forecasting future GDP growth worldwide, we show that considering the effects of crises improves the forecast model of GDP growth. In addition, we suggest that predicting GDP growth using aggregate-level profitability drivers is relevant for stock valuation in developed countries, but not in emerging countries.
{"title":"Aggregate earnings informativeness and economic shocks: international evidence","authors":"Yuto Yoshinaga, Makoto Nakano","doi":"10.1080/16081625.2021.1952084","DOIUrl":"https://doi.org/10.1080/16081625.2021.1952084","url":null,"abstract":"<p><b>ABSTRACT</b></p><p>Our study proposes the usage of aggregate earnings to forecast future GDP growth. Using empirical analyses with global quarterly data, we investigate whether aggregate-level profitability drivers, which are components of aggregate earnings, are relevant for forecasting GDP growth. After confirming that aggregate-level profitability drivers are useful for forecasting future GDP growth worldwide, we show that considering the effects of crises improves the forecast model of GDP growth. In addition, we suggest that predicting GDP growth using aggregate-level profitability drivers is relevant for stock valuation in developed countries, but not in emerging countries.</p>","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"25 7","pages":""},"PeriodicalIF":1.1,"publicationDate":"2021-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138514317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-18DOI: 10.1080/16081625.2021.1947861
Hyejin Ahn
ABSTRACT This study examines whether fair value accounting and its complexity influence financial statement comparability. Using quarterly US bank holding company data from 2008 to 2014, I find that the proportion of assets and liabilities that are fair valued is negatively associated with financial statement comparability and that this negative relation appears to be driven by the less v erifiable (lower-level) fair value estimates. Under the three-level hierarchy of SFAS 157, the financial statements of a bank become less comparable with those of other banks as the complexity of its fair value estimates increases. Overall, these results indicate that fair value complexity has a negative influence on comparability.
{"title":"Fair value complexity and financial statement comparability","authors":"Hyejin Ahn","doi":"10.1080/16081625.2021.1947861","DOIUrl":"https://doi.org/10.1080/16081625.2021.1947861","url":null,"abstract":"ABSTRACT This study examines whether fair value accounting and its complexity influence financial statement comparability. Using quarterly US bank holding company data from 2008 to 2014, I find that the proportion of assets and liabilities that are fair valued is negatively associated with financial statement comparability and that this negative relation appears to be driven by the less v erifiable (lower-level) fair value estimates. Under the three-level hierarchy of SFAS 157, the financial statements of a bank become less comparable with those of other banks as the complexity of its fair value estimates increases. Overall, these results indicate that fair value complexity has a negative influence on comparability.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"6 1","pages":"1247 - 1266"},"PeriodicalIF":1.1,"publicationDate":"2021-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76667962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-14DOI: 10.1080/16081625.2021.1953389
Sungjin Park, Emeka T. Nwaeze
ABSTRACT We examine whether cross-firm comparability of earnings and operating cash flows influence the usefulness of earnings and cash flows in CEO compensation. We find that earnings (cash flow) comparability is positively associated with the compensation weight of earnings (cash flow) and negatively associated with the weight of cash flow (earnings), suggesting a substitution effect between earnings and cash flow measures. We also find that peer firms ‘stock returns get less negatively associated with CEO compensation as a firm’s earnings comparability increases, suggesting that the filtering role of stock return-based relative performance evaluation decreases as earnings comparability increases.
{"title":"Earnings and cash flow comparability in executive compensation","authors":"Sungjin Park, Emeka T. Nwaeze","doi":"10.1080/16081625.2021.1953389","DOIUrl":"https://doi.org/10.1080/16081625.2021.1953389","url":null,"abstract":"ABSTRACT We examine whether cross-firm comparability of earnings and operating cash flows influence the usefulness of earnings and cash flows in CEO compensation. We find that earnings (cash flow) comparability is positively associated with the compensation weight of earnings (cash flow) and negatively associated with the weight of cash flow (earnings), suggesting a substitution effect between earnings and cash flow measures. We also find that peer firms ‘stock returns get less negatively associated with CEO compensation as a firm’s earnings comparability increases, suggesting that the filtering role of stock return-based relative performance evaluation decreases as earnings comparability increases.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"224 1","pages":"72 - 95"},"PeriodicalIF":1.1,"publicationDate":"2021-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80035327","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-02DOI: 10.1080/16081625.2021.1947860
Hsihui Chang, Junxiong Fang, P. Mo
ABSTRACT This study examines how engagement signing auditors’ career concerns affect audit fees and audit quality. Based on a sample of listed companies in China, we find that audit fees and audit quality are lower for firms audited by auditors in their early years of being signing auditors. Moreover, we find that the results are more pronounced for signing auditors in local Chinese audit firms than those in Big 4. These results may be attributed to differential quality control mechanism and incentive systems. Our results have implications for regulators and audit firms in formulating standards and guidelines on monitoring newly promoted signing auditors.
{"title":"Auditor career concerns, audit fees and audit quality","authors":"Hsihui Chang, Junxiong Fang, P. Mo","doi":"10.1080/16081625.2021.1947860","DOIUrl":"https://doi.org/10.1080/16081625.2021.1947860","url":null,"abstract":"ABSTRACT This study examines how engagement signing auditors’ career concerns affect audit fees and audit quality. Based on a sample of listed companies in China, we find that audit fees and audit quality are lower for firms audited by auditors in their early years of being signing auditors. Moreover, we find that the results are more pronounced for signing auditors in local Chinese audit firms than those in Big 4. These results may be attributed to differential quality control mechanism and incentive systems. Our results have implications for regulators and audit firms in formulating standards and guidelines on monitoring newly promoted signing auditors.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"1 1","pages":"30 - 55"},"PeriodicalIF":1.1,"publicationDate":"2021-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88693016","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-07-01DOI: 10.1080/16081625.2021.1947858
Ashish Chand, Ruixiang Jiang, Zhenling Zhao
ABSTRACT Using cross-border M&A activities and national cultural scores from the Hofstede Insights organization, we study the impact of national cultural distance on cross-border M&As from 2008 to 2017. The empirical evidence shows that both the success of M&A attempts and the post-acquisition stock returns are negatively related to national cultural distance. We also test this negative relation considering the country cluster and industry effects.
{"title":"National cultural distance and cross-border M&A","authors":"Ashish Chand, Ruixiang Jiang, Zhenling Zhao","doi":"10.1080/16081625.2021.1947858","DOIUrl":"https://doi.org/10.1080/16081625.2021.1947858","url":null,"abstract":"ABSTRACT Using cross-border M&A activities and national cultural scores from the Hofstede Insights organization, we study the impact of national cultural distance on cross-border M&As from 2008 to 2017. The empirical evidence shows that both the success of M&A attempts and the post-acquisition stock returns are negatively related to national cultural distance. We also test this negative relation considering the country cluster and industry effects.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"15 1","pages":"1350 - 1367"},"PeriodicalIF":1.1,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84890095","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-03DOI: 10.1080/16081625.2021.1934708
Mohamed Samy Eldeeb, Y. T. Halim, Ahmed F. Elbayoumi
ABSTRACT This study examines the extent to which corporate governance (CG) affects disclosure tone (DT) and assesses the impact of DT on firm value (FV). It also tests the effect of CG on FV using DT as an intermediary variable. Content analysis is used to measure DT level. CEO duality, board size, gender diversity, and board independence are used as proxies for CG. Tobin’s Q is used to measure FV. The empirical analysis shows significant positive impact of CG on DT and FV. We also find a highly significant association between disclosure of good/bad news with leverage, audit quality, firm growth, and abnormal accruals. The results also indicate that DT along with the profitability of the firm (ROA) and Abnormal Accruals are significantly associated with FV. Finally, the results of the structure equation modeling show that gender diversity, ROA, leverage, revenue growth, and abnormal accruals are the most influential variables that run from CG and DT into FV. The novelty of this study stems from its empirical analysis that tests the association between CG, DT from one side and DT and FV from the other side, and then measures the impact of CG on FV using DT as an intermediary variable.
{"title":"Disclosure tone, corporate governance and firm value: evidence from Egypt","authors":"Mohamed Samy Eldeeb, Y. T. Halim, Ahmed F. Elbayoumi","doi":"10.1080/16081625.2021.1934708","DOIUrl":"https://doi.org/10.1080/16081625.2021.1934708","url":null,"abstract":"ABSTRACT This study examines the extent to which corporate governance (CG) affects disclosure tone (DT) and assesses the impact of DT on firm value (FV). It also tests the effect of CG on FV using DT as an intermediary variable. Content analysis is used to measure DT level. CEO duality, board size, gender diversity, and board independence are used as proxies for CG. Tobin’s Q is used to measure FV. The empirical analysis shows significant positive impact of CG on DT and FV. We also find a highly significant association between disclosure of good/bad news with leverage, audit quality, firm growth, and abnormal accruals. The results also indicate that DT along with the profitability of the firm (ROA) and Abnormal Accruals are significantly associated with FV. Finally, the results of the structure equation modeling show that gender diversity, ROA, leverage, revenue growth, and abnormal accruals are the most influential variables that run from CG and DT into FV. The novelty of this study stems from its empirical analysis that tests the association between CG, DT from one side and DT and FV from the other side, and then measures the impact of CG on FV using DT as an intermediary variable.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"60 1","pages":"793 - 814"},"PeriodicalIF":1.1,"publicationDate":"2021-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76682074","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-03DOI: 10.1080/16081625.2021.1934707
Xiaotao Zhang, Yuelei Li, Wei Zhang, Jieli Xing
ABSTRACT Decision-making behavior can be capricious and may vary from individual to individual. This paper provides a straightforward method for the empirical identification of the narrative style affecting financial decisions under time pressure. Punctuation, Chinese characters and sentence length constitute different narrative styles. Using data from Renrendai, we find that as the number and type of punctuation marks in narratives increase, the loan funding and repayment performance increase. Also, as the number of characters and long sentences in narratives increases, loan funding increases, whereas loan performance suffers. These conclusions remain valid after robustness checks.
{"title":"The role of narrative style in a peer-to-peer lending market: an empirical investigation","authors":"Xiaotao Zhang, Yuelei Li, Wei Zhang, Jieli Xing","doi":"10.1080/16081625.2021.1934707","DOIUrl":"https://doi.org/10.1080/16081625.2021.1934707","url":null,"abstract":"ABSTRACT Decision-making behavior can be capricious and may vary from individual to individual. This paper provides a straightforward method for the empirical identification of the narrative style affecting financial decisions under time pressure. Punctuation, Chinese characters and sentence length constitute different narrative styles. Using data from Renrendai, we find that as the number and type of punctuation marks in narratives increase, the loan funding and repayment performance increase. Also, as the number of characters and long sentences in narratives increases, loan funding increases, whereas loan performance suffers. These conclusions remain valid after robustness checks.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"11 1","pages":"156 - 171"},"PeriodicalIF":1.1,"publicationDate":"2021-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78887207","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-01DOI: 10.1080/16081625.2021.1934709
Yujin Kim, J. An
ABSTRACT This study examines the effect of initial credit ratings on voluntary disclosure in Korea. Managers are concerned about initial credit ratings because they become the benchmark for future debt issues. Therefore, firms may have incentives to opportunistic disclosure in order to get favorable credit ratings during the initial credit rating evaluation. We find that the frequency of voluntary disclosures at the time of initial credit rating evaluations are greater than during the two accounting periods before and after the evaluation. This study provides insights that firms have incentives to expand voluntary disclosure to obtain favorable initial ratings.
{"title":"Initial credit ratings and voluntary disclosure : Evidence from Korea","authors":"Yujin Kim, J. An","doi":"10.1080/16081625.2021.1934709","DOIUrl":"https://doi.org/10.1080/16081625.2021.1934709","url":null,"abstract":"ABSTRACT This study examines the effect of initial credit ratings on voluntary disclosure in Korea. Managers are concerned about initial credit ratings because they become the benchmark for future debt issues. Therefore, firms may have incentives to opportunistic disclosure in order to get favorable credit ratings during the initial credit rating evaluation. We find that the frequency of voluntary disclosures at the time of initial credit rating evaluations are greater than during the two accounting periods before and after the evaluation. This study provides insights that firms have incentives to expand voluntary disclosure to obtain favorable initial ratings.","PeriodicalId":45890,"journal":{"name":"Asia-Pacific Journal of Accounting & Economics","volume":"12 1","pages":"820 - 832"},"PeriodicalIF":1.1,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74256322","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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