Journal of International Financial Management & Accounting最新文献

While managerial characteristics significantly impact corporate strategies, the role of managerial myopia in corporate financialization remains underexplored. Using data from a sample of 20,881 firm-year observations of Chinese firms from 2007 to 2019, we examine how managerial myopia influences corporate financialization. We find that managerial myopia promotes corporate financialization. The results are robust to various measures of financialization, alternative specifications, and considerations of endogeneity. Further analysis reveals that external supervision, indicated by analyst attention and institutional investor shareholdings, mitigates the positive effect of managerial myopia on corporate financialization. By contrast, corporate pressures, such as default risk and competitive pressure, amplify the tendency toward financialization.

We investigate how cross-border cooperation formed by the Multilateral Memorandum of Understanding (MMoU) affects tax avoidance of foreign firms cross-listed in the U.S. Prior studies show that the MMoU enhances U.S. SEC's regulatory oversight of foreign firms and increases such firms' corporate governance. We utilize data from 27 jurisdictions from 2000 to 2009 and find that U.S. cross-listed firms mitigate tax avoidance more than do their home-listed peers after their home jurisdictions become signatories of the MMoU. Our further analyses reveal that improved information environment and enhanced foreign institutional investor monitoring are two possible underlying mechanisms, consistent with the complementarity theory of tax avoidance that self-serving managers can employ tax avoidance to divert assets when corporate governance is ineffective. We also show that the effect of the MMoU increases with U.S. IRS monitoring and the strength of institutional regimes in foreign firms' home jurisdictions. Collectively, our findings elucidate unintended consequences of the MMoU and provide implications for practitioners and regulators.

This study empirically examines the impact of noncontrolling large shareholders (NCLSs) on short-term debt for long-term investment (SDFLI) using a sample of Chinese A-share firms listed on the Shanghai and Shenzhen Stock Exchanges from 2005 to 2021. The findings suggest that NCLSs reduce the level of SDFLI; however, asset collateralizability mitigates the negative relationship between NCLSs and SDFLI. Conversely, stock liquidity reinforces the governance effect of NCLSs in mitigating SDFLI. The mechanism analysis suggests that improving agency efficiency is an important channel through which NCLSs influence SDFLI. This study deepens the understanding of the factors driving the SDFLI of listed Chinese firms and provides insights into how to mitigate this problem. Additionally, it provides empirical support for the governance role NCLSs play in listed firms.

Our study explores the relationship between Green Credit Policy (GCP), bank competition, and corporate green transformation. Previous research mainly focused on the impact of GCP on corporate green practices from a single dimension, with limited attention to bank competition and the overall process of corporate green transformation. Using machine learning methods and Baidu Maps API, we innovatively construct indicators for the green transformation of Chinese A-share-listed companies and bank competition from 2007 to 2020. We treat China's Green Credit Guidelines as a quasi-experiment and find that GCP has a positive impact on corporate green transformation, with bank competition strengthening this effect. Notably, the influence of state-owned banks and foreign banks is more pronounced. Mechanism analysis indicates that alleviating financing constraints and promoting green behavior are critical mechanisms through which GCP affects green transformation. Furthermore, this effect is more pronounced in state-owned enterprises, companies with high environmental transparency, regulated industries, and regions with stronger environmental regulations.

How does a firm's asset redeployability affect its future stock price crash risk? Asset redeployability, which refers to the ease of selling corporate assets, allows managers to opportunistically exploit asset transactions to manage earnings to hoard bad news, thereby increasing future crash risk. Using a large sample of US firms, we find that firms with higher asset redeployability are more likely to experience a future stock price crash. We further find that this positive association is stronger for firms experiencing greater internal and external pressure to manage earnings. Our study highlights that relying on redeployable assets to orchestrate earnings undermines shareholders' interests, particularly when internal and external pressures incentivize upward earnings management.

This paper examines the influence of family management on corporate charitable donations. Drawing from the literature on socioemotional wealth, we propose that the level of family management and corporate charitable donations presents an inverted U-shaped relationship, and that this inverted U-shaped relationship is weakened by firm diversification levels and an unfair competition environment. An analysis of a comprehensive data set comprising 9266 firm-year observations, encompassing 1445 publicly listed Chinese family firms from 2010 to 2021, provides empirical support for our hypotheses. The results remain robust when accounting for endogeneity concerns. This study contributes to the growing body of research on environmental, social, and governance in the field of finance and accounting, and enhances our knowledge of sustainability practices in family firms.

This study draws upon media agenda-setting theory to investigate the relationship between negative media coverage around environmental, social, and governance (ESG) issues and the quality of integrated reporting (IR). In particular, we examine the top 100 South African listed companies in the 2013–2018 timeframe for 317 firm-year observations. Our results reveal that IR quality is positively related to negative ESG media coverage. Thus, a company exposed to more media pressure issues higher-quality IR consistent with its need to face scrutiny and potential reputational damage and to restore or maintain its legitimacy. Results are robust to different measures of negative ESG media coverage, controlling for ESG disclosures, and are confirmed by analyses aimed at addressing endogeneity (instrumental variable approach, firm-fixed effects, and matched samples). Subsample analyses show that financial sector reputational concerns do not impact our results. Additional tests show no long-term effects of negative media coverage on IR quality and that sustainability embeddedness alleviates a company's response to negative ESG news in terms of enhanced reporting.

Using a unique data set of Italian banks covering the 2011 to 2019 period, this study investigates the influence of human resource training on bank stability and examines whether this relationship is affected by bank efficiency and credit risk. In line with the resource-based view (RBV) of the firm, our findings suggest that employee training exerts a positive impact on bank stability. Credit risk and bank efficiency are also identified as potential drivers in this relationship. Importantly, our results remain robust when addressing endogeneity issues and considering alternative model specifications. This study offers novel insights into the impact of employee-related variables on bank performance. The practical implications of our findings hold relevance for both banks and regulatory authorities, as human resource training can profoundly influence the effectiveness of risk management strategies and, ultimately, the sound and prudent management of banks.

We examine the effects of environmental regulations on the profitability and value of Korean listed firms, exploiting the first phase of the Korean Emissions Trading System (ETS) as an exogenous shock. While previous studies have mainly focused on environmental regulations in developed countries, often yielding inconclusive results, emerging markets like South Korea remain less explored. Using data on Korean listed firms from 2011 to 2017, we explore the effects of the 2015 Korean ETS on environmental and financial performance in treated firms. We find that treated firms did not reduce their carbon emissions, but their environmental ratings improved. Moreover, the ETS slightly increased profitability but significantly decreased firm value. Treated firms also exhibited a higher systematic risk, indicating that investors account for future carbon risks. In summary, the Korean ETS has not effectively incentivized firms to reduce emissions and has diminished their long-term value.

This study investigates the impact of managerial foreign experience on corporate employee protection. Using 30,644 firm-year observations from 3972 Chinese listed firms from 2008 to 2020, I find that compared with firms without returnee directors, firms with returnee directors pay more social insurance premiums and implement better employee treatment policies. The positive relationship is stronger when returnee directors acquire foreign work experience (as opposed to educational experience), gain experience in countries with strong labor protection, serve as a CEO or a chairperson in the Chinese firm, and have high media visibility. The cross-sectional analysis shows the effect of directors with foreign experience on employee protection is greater in non-state-owned firms, and returnee directors improve employee protections more when the employees have relatively weak discourse power. Additional analysis finds that returnee directors improve employee training and occupational safety, and they help balance social insurance generosity and employment levels. The results are robust after addressing the potential endogeneity problems. My results suggest a potential way to transfer better labor protection practices from developed to emerging markets.