Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_781771_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yunxia Bai Author-X-Name-First: Yunxia Author-X-Name-Last: Bai Author-Name: Bing-Xuan Lin Author-X-Name-First: Bing-Xuan Author-X-Name-Last: Lin Author-Name: Yaping Wang Author-X-Name-First: Yaping Author-X-Name-Last: Wang Author-Name: Liansheng Wu Author-X-Name-First: Liansheng Author-X-Name-Last: Wu Title: Corporate Ownership, Debt, and Expropriation: Evidence from China Abstract: We provide direct evidence on the dark side of leverage and offer new insights regarding the role of debt in corporate governance. Using a sample of Chinese state-owned enterprises that have experienced a transfer of controlling rights, we find a positive and significant relationship between expropriation and debt usage. Firms controlled by private block shareholders tend to have higher leverage due to excessive expropriation via debt. The evidence we document provides fresh insights into the impact of debt on the agency problem between the controlling shareholder and minority shareholders, and suggests the presence of expropriation through debt and its conditional effect on corporate ownership. Journal: China Journal of Accounting Studies Pages: 13-31 Issue: 1 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.781771 File-URL: http://hdl.handle.net/10.1080/21697221.2013.781771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:1:p:13-31 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_781773_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2012 Journal: China Journal of Accounting Studies Pages: 62-62 Issue: 1 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.781773 File-URL: http://hdl.handle.net/10.1080/21697221.2013.781773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:1:p:62-62 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_781765_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mary Barth Author-X-Name-First: Mary Author-X-Name-Last: Barth Title: Global Comparability in Financial Reporting: What, Why, How, and When? Abstract: The Conceptual Framework identifies comparability as a qualitative characteristic of useful financial reporting information. This paper explains what comparability is, why comparability is desirable, how comparability is achieved, and when we might achieve it. In particular, comparability is the qualitative characteristic that enables users to identify and understand similarities in, and differences among, items; comparability aides investors, lenders and other creditors in making informed capital allocation decisions; and achieving comparability depends on firms applying a common set of financial reporting standards and on requirements in the standards, especially measurement requirements. The paper discusses research showing that greater comparability can lower costs of comparing investment opportunities and improving financial reporting information quality. When comparability might be achieved is uncertain, although much progress has been made recently. Journal: China Journal of Accounting Studies Pages: 2-12 Issue: 1 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.781765 File-URL: http://hdl.handle.net/10.1080/21697221.2013.781765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:1:p:2-12 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_781766_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tianshu Zhang Author-X-Name-First: Tianshu Author-X-Name-Last: Zhang Author-Name: Jun Huang Author-X-Name-First: Jun Author-X-Name-Last: Huang Title: The Risk Premium of Audit Fee: Evidence from the 2008 Financial Crisis Abstract: This paper uses the 2008 financial crisis to examine the association between audit pricing and firm risk. The empirical analysis shows that when firm risk increased during the crisis, accounting firms charged more for their auditing services, supporting the risk premium of audit fee. An analysis of different industries presents a positive correlation between the audit fees and firm risk for export companies that were seriously shocked by the crisis. Further, compared with private firms, the audit fees of State-Owned Enterprises (SOEs) did not increase with firm risk under the crisis, due to the government’s bailout guarantee. Finally, the risk premium of audit fee was only found for companies audited by non-Big Four accounting firms. Journal: China Journal of Accounting Studies Pages: 47-61 Issue: 1 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.781766 File-URL: http://hdl.handle.net/10.1080/21697221.2013.781766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:1:p:47-61 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_781768_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Launching editorial Journal: China Journal of Accounting Studies Pages: 1-1 Issue: 1 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.781768 File-URL: http://hdl.handle.net/10.1080/21697221.2013.781768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:1:p:1-1 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_781769_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yongjian Shen Author-X-Name-First: Yongjian Author-X-Name-Last: Shen Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Donghua Chen Author-X-Name-First: Donghua Author-X-Name-Last: Chen Title: Wage and Accounting Conservatism: Evidence from China Abstract: Whereas employees want their wages to stay at a sustainably high level, managers want to cut labor costs. This contrast may lead to different accounting conservatism preferences between the two parties. We use Khan and Watts’ (2009) C score model to examine the effects of wage amount and rigidity on accounting conservatism. We find that the degree of accounting conservatism is positively correlated with (1) the amount of wages, (2) the rigidity of wages and (3) the number of employees. In addition, our results also show that conservatism has increased since the enactment of the Law of the People’s Republic of China on Employment Contracts in 2008. This paper connects two different fields (wage and accounting conservatism) and expands on contracts related to the conservatism raised by Watts (2003). Journal: China Journal of Accounting Studies Pages: 32-46 Issue: 1 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.781769 File-URL: http://hdl.handle.net/10.1080/21697221.2013.781769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:1:p:32-46 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_802974_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hong Luo Author-X-Name-First: Hong Author-X-Name-Last: Luo Author-Name: Baohua Liu Author-X-Name-First: Baohua Author-X-Name-Last: Liu Author-Name: Weiqian Zhang Author-X-Name-First: Weiqian Author-X-Name-Last: Zhang Title: The monitoring role of media on executive compensation Abstract: This paper investigates the monitoring role of media on executive compensation. Using data on media coverage from 2007 to 2009, we find that the media can serve as an effective external monitoring mechanism on executive compensation by affecting executive reputation. Specifically, negative media coverage and government intervention on media can enhance the monitoring role of media. We also find that the monitoring role of media and the market reaction to media coverage are stronger for non-state-owned corporations. Although the monitoring role of media is not different between monopolistic and non-monopolistic industries, the market reaction to media coverage is stronger for companies in non-monopolistic industries. We also find that there is less coverage on monopolistic and state-owned companies. Journal: China Journal of Accounting Studies Pages: 138-156 Issue: 2 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.802974 File-URL: http://hdl.handle.net/10.1080/21697221.2013.802974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:2:p:138-156 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_800953_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chee Chow Author-X-Name-First: Chee Author-X-Name-Last: Chow Author-Name: Rong-Ruey Duh Author-X-Name-First: Rong-Ruey Author-X-Name-Last: Duh Title: On why and how to break down the silos in accounting research (with an illustrative study at the interface between financial and management accounting) Abstract: This paper shares some thoughts on why and how to break down the artificial barriers that exist in accounting research. Through a discussion of the research-practice-teaching triangle in accounting, three major ways are suggested for accomplishing this objective. These are, respectively, expanding the diversity of theories and methods, and adopting a more holistic approach to viewing accounting phenomena. We particularly illustrate the last approach by presenting a framework for placing accounting issues in a broader context, and reporting on a study that emerges from applying this framework. Journal: China Journal of Accounting Studies Pages: 63-90 Issue: 2 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.800953 File-URL: http://hdl.handle.net/10.1080/21697221.2013.800953 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:2:p:63-90 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_788974_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Author-Name: Feiteng Ye Author-X-Name-First: Feiteng Author-X-Name-Last: Ye Author-Name: Yun Hong Author-X-Name-First: Yun Author-X-Name-Last: Hong Title: Partner–client relationship and auditor switches Abstract: This study investigates the effect of a partner–client relationship on auditor switches. We find that a non-signing partner, especially one who is ‘job-hopping,’ has a significant effect on auditor switches. Specifically, if a partner who was the signatory of a public company’s annual report no longer signs for the accounting firm or leaves the firm, the public company that he or she signed for tends to change its auditor as well. When the job-hopping partner jumps to a new accounting firm with a certificate to service public companies, the probability of an auditor switch is the highest. The former auditee (or ‘client’ hereafter) can follow the partner to the new accounting firm to retain the special partner–client relationship. Furthermore, we consider that there are usually two signing partners with different tenures for a client’s annual report. Empirical results show that the non-signing partner can more significantly affect a client’s auditor switch when he or she is the one with the comparatively longer tenure. These results imply that the partner–client relationship is valuable to accounting firms and will help with client retention. Journal: China Journal of Accounting Studies Pages: 114-137 Issue: 2 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.788974 File-URL: http://hdl.handle.net/10.1080/21697221.2013.788974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:2:p:114-137 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_809503_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yanyan Wang Author-X-Name-First: Yanyan Author-X-Name-Last: Wang Author-Name: Lisheng Yu Author-X-Name-First: Lisheng Author-X-Name-Last: Yu Title: State-owned bank loan and stock price synchronicity Abstract: Both paternalism from governments and bank loans are sources of soft-budget constraints, which reduce information disclosure, including state-owned enterprises’ (SOEs’) perceived bankruptcy risk and operational risk, both of which may affect stock-price synchronicity. From a banking perspective, this paper investigates the effect of state-owned bank loans on stock-price synchronicity and whether such an effect is asymmetric in SOEs and non-SOEs. The results indicate that the percentage of loans from state-owned banks is positively related to stock-price synchronicity and that such a relationship is significantly weaker in non-SOEs than that in SOEs. When we further divide state-owned banks into policy banks and state-owned commercial banks and divide non-SOEs into firms with political connections and firms without political connections, the results show that the positive relation between loans from policy banks and stock-price synchronicity is higher than that of state-owned commercial banks, while the stock-price synchronicity of politically connected firms is the same as that of SOEs. Overall, these results indicate that soft-budget constraints are important factors that affect stock-price synchronicity. Journal: China Journal of Accounting Studies Pages: 91-113 Issue: 2 Volume: 1 Year: 2013 X-DOI: 10.1080/21697221.2013.809503 File-URL: http://hdl.handle.net/10.1080/21697221.2013.809503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:2:p:91-113 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_855976_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu He Author-X-Name-First: Yu Author-X-Name-Last: He Author-Name: Qingliang Tang Author-X-Name-First: Qingliang Author-X-Name-Last: Tang Author-Name: Kaitian Wang Author-X-Name-First: Kaitian Author-X-Name-Last: Wang Title: Carbon disclosure, carbon performance, and cost of capital Abstract: More and more firms are voluntarily disclosing carbon information as a response to the challenge of climate change. This research investigated the interactions among carbon disclosure, carbon performance, and the cost of capital. Because unobservable overall strategic decisions by management affect each of these outcomes and phenomena, we used a simultaneous equations model to analyse our data. We used data from S&P 500 firms that participated in the Carbon Disclosure Project (CDP) in 2010. We found that the cost of capital is negatively associated with carbon disclosure, which is consistent with voluntary disclosure theory. This relationship is weaker for firms with good carbon performance. In addition, there is an inverse relationship between carbon disclosure and carbon performance, which is consistent with legitimacy theory. Our results suggest that voluntary carbon disclosure is a rational choice that firms make to reduce the pressure exerted by legitimacy threats and to lower the cost of capital. Journal: China Journal of Accounting Studies Pages: 190-220 Issue: 3-4 Volume: 1 Year: 2013 Month: 12 X-DOI: 10.1080/21697221.2014.855976 File-URL: http://hdl.handle.net/10.1080/21697221.2014.855976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:3-4:p:190-220 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_856256_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Stephen Penman Author-X-Name-First: Stephen Author-X-Name-Last: Penman Title: Accounting standard setting: Thoughts on developing a conceptual framework Abstract: This paper explores how academics and regulators might approach the task of developing a conceptual framework for financial accounting policy. It does so against a backdrop of a short history of accounting thought that lays out approaches that have been taken in the past and evaluates their impact. With the lessons from history recognized, the paper then offers a number of suggestions to be considered as we go forward. Some of these suggestions come from research. Some come from taking a utilitarian perspective on accounting. Some come from observing accounting that voluntarily arises in markets without regulation. The discussion engages with many of the ideas offered in the Conceptual Framework project of the International Accounting Standards Board and the Financial Accounting standards Board, including issues of objectives, ‘qualitative characteristics,’ recognition and measurement, and a balance sheet approach versus an income statement approach. But the paper is offered primarily to help academics engage in the important task of developing normative accounting policy. Journal: China Journal of Accounting Studies Pages: 157-167 Issue: 3-4 Volume: 1 Year: 2013 Month: 12 X-DOI: 10.1080/21697221.2013.856256 File-URL: http://hdl.handle.net/10.1080/21697221.2013.856256 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:3-4:p:157-167 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_857816_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ran Zhang Author-X-Name-First: Ran Author-X-Name-Last: Zhang Author-Name: Si Chen Author-X-Name-First: Si Author-X-Name-Last: Chen Author-Name: Jianfeng Wang Author-X-Name-First: Jianfeng Author-X-Name-Last: Wang Title: PCAOB inspections, auditor reputation, and Chinese reverse merger frauds Abstract: This paper examines whether Public Accounting Oversight Board (PCAOB) inspections decrease fraud likelihood in the Chinese reverse merger firms’ accounting crisis and whether auditor reputation moderates this relationship. By analyzing Chinese firms listed in the US stock markets through reverse merger (RM) during 2001–2011, we find that PCAOB inspections significantly decrease accounting fraud likelihood for RM firms, especially for auditors with low reputation. But this relationship does not hold for Chinese initial public offering (IPO) firms listed in the US. The reason may be that 84.68% of IPO firms hire Big 4 accounting firms, whose reputation substitutes for PCAOB inspections. Overall, our results indicate that PCAOB inspections help prevent financial frauds, but only for firms hiring non-Big 4 auditors. Journal: China Journal of Accounting Studies Pages: 221-235 Issue: 3-4 Volume: 1 Year: 2013 Month: 12 X-DOI: 10.1080/21697221.2013.857816 File-URL: http://hdl.handle.net/10.1080/21697221.2013.857816 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:3-4:p:221-235 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_867401_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Bai Author-X-Name-First: Jun Author-X-Name-Last: Bai Author-Name: Lishuai Lian Author-X-Name-First: Lishuai Author-X-Name-Last: Lian Title: Why do state-owned enterprises over-invest? Government intervention or managerial entrenchment Abstract: In a transition economy, corporate investment decisions are affected not only by managerial discretion, but also by government intervention. Using the data of publicly listed state-owned enterprises (SOEs) in China, we investigate how government intervention and corporate managerial entrenchment affect over-investment. The results show that both the policy burden from government intervention and rent-seeking due to managerial entrenchment can lead to over-investments, and these two effects appear to be complementary to each other. With a weak government intervention, managerial discretion is greater and management behavior tends toward opportunism. Journal: China Journal of Accounting Studies Pages: 236-259 Issue: 3-4 Volume: 1 Year: 2013 Month: 12 X-DOI: 10.1080/21697221.2013.867401 File-URL: http://hdl.handle.net/10.1080/21697221.2013.867401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:3-4:p:236-259 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_870367_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Liu Author-X-Name-First: Jun Author-X-Name-Last: Liu Author-Name: Feng Liu Author-X-Name-First: Feng Author-X-Name-Last: Liu Title: Fiscal centralization, government control and corporate tax burden: Evidence from China Abstract: This paper examines the relationship between government control and the tax burden of firms in China. We develop a new corporate tax burden measurement taking turnover taxes into account, because in China turnover taxes actually constitute the main component of tax burden. We find that the tax burden of state-owned enterprises (SOEs) is lower than non-SOEs, indicating that non-SOEs are facing tax discrimination. Among SOEs, the tax burden of local SOEs is higher than that of central SOEs, and the lower the local governments’ level, the higher the tax burden of SOEs under their control. We interpret these findings as the result of local governments’ tax competition and tax grabbing behaviors under China’s current highly centralized fiscal system. In addition, we find that our results are mainly caused by firms’ differences in tax refunds and the Value-Added Tax (VAT) burden. Journal: China Journal of Accounting Studies Pages: 168-189 Issue: 3-4 Volume: 1 Year: 2013 Month: 12 X-DOI: 10.1080/21697221.2013.870367 File-URL: http://hdl.handle.net/10.1080/21697221.2013.870367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:3-4:p:168-189 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_874688_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Journal of Accounting Studies Pages: (ebi)-(ebi) Issue: 3-4 Volume: 1 Year: 2013 Month: 12 X-DOI: 10.1080/21697221.2013.874688 File-URL: http://hdl.handle.net/10.1080/21697221.2013.874688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:1:y:2013:i:3-4:p:(ebi)-(ebi) Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2125613_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2021 Journal: China Journal of Accounting Studies Pages: x-xii Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2125613 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2125613 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:x-xii Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jingru Wang Author-X-Name-First: Jingru Author-X-Name-Last: Wang Author-Name: Hongjian Wang Author-X-Name-First: Hongjian Author-X-Name-Last: Wang Author-Name: Xinghe Liu Author-X-Name-First: Xinghe Author-X-Name-Last: Liu Author-Name: Qingyuan Li Author-X-Name-First: Qingyuan Author-X-Name-Last: Li Title: Credit availability and classification shifting: based on the quasi-natural experiment of the bank lending interest rate ceiling deregulation Abstract: Based on the exogenous shock of the bank lending interest rate ceiling deregulation in China, this paper uses a difference-in-differences model and studies how credit availability affects classification shifting from the perspective of formal debt contract formation. We find that high-risk firms’ classification shifting degree is higher after the bank lending interest rate ceiling deregulation. Cross-sectional heterogeneity tests show that the impact of the deregulation on classification shifting is stronger when the level of financing constraints is higher, the diversity of financing channels is lower, the bank’s need for information is higher, and the bank’s monitoring is higher. Mechanism tests further show that the deregulation enables high-risk firms to increase borrowing through classification shifting. We use the unique setting of China interest rate liberalisation to scientifically identify the debt financing motivation for classification shifting. This study expands and enriches the institutional determinants of accounting information production. Journal: China Journal of Accounting Studies Pages: 49-72 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2082722 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082722 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:49-72 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jing Cai Author-X-Name-First: Jing Author-X-Name-Last: Cai Author-Name: Nan Xu Author-X-Name-First: Nan Author-X-Name-Last: Xu Author-Name: Yuan Feng Author-X-Name-First: Yuan Author-X-Name-Last: Feng Author-Name: Nan Gao Author-X-Name-First: Nan Author-X-Name-Last: Gao Title: Political connections and informal financing: use of trade credit in China Abstract: Using a dataset of listed non-state-owned enterprises in China, we show that politically connected firms have a greater difficulty in obtaining trade credit than non-connected firms. This credit discrimination against politically connected firms strengthens when firms locate in regions with lower-quality legal systems or suppliers have greater bargaining power. Further analysis suggests that the lower credit reputation of politically connected firms stems from suppliers’ concern about contract enforceability, that is, politically connected firms receive regulatory favours from government, which can create obstacles to the collection of trade credit through the legal system. Our study contributes to the existing literature by investigating the impact of political connections on informal financing activities, and by revealing the asymmetric influence of political connections on formal and non-formal financing channels. Journal: China Journal of Accounting Studies Pages: 26-48 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2082720 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082720 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:26-48 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chao Dou Author-X-Name-First: Chao Author-X-Name-Last: Dou Author-Name: Xue Yang Author-X-Name-First: Xue Author-X-Name-Last: Yang Author-Name: Wei Liu Author-X-Name-First: Wei Author-X-Name-Last: Liu Author-Name: Rui Sun Author-X-Name-First: Rui Author-X-Name-Last: Sun Title: Can independent directors with macro vision relieve debt default – from the perspective of independent director’s ‘advisory’ function Abstract: The phenomenon of corporate debt default has broken out in recent years, which highlights the importance of the macro situation to the stability of business operations. In this paper, the debt default of A-share listed companies in Shanghai and Shenzhen Stock Exchange from 2008 to 2018 are used as a sample to conduct a research from the perspective of independent directors with macro vision. The empirical results show that the larger the number and the higher the proportion of macro-background independent directors in bond issuing companies, the less debt default will be found; moreover, the relationships are stronger when enterprises face more economic uncertainty and higher systemic risk. Meanwhile, independent director with macro vision mainly reduces the company’s default risk. The above results not only provide new evidence for the advisory role of independent directors, but also supplement the influencing factors of debt default. Journal: China Journal of Accounting Studies Pages: 73-94 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2082721 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082721 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:73-94 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2086027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bingyi Huang Author-X-Name-First: Bingyi Author-X-Name-Last: Huang Author-Name: Yuting Huang Author-X-Name-First: Yuting Author-X-Name-Last: Huang Title: Does employee representation affect corporate investment efficiency? Evidence from China’s capital market Abstract: This paper is the first empirical study of the economic consequences of the adoption of the employee director system in China from the perspective of the investment efficiency of enterprises, that is, based on empirical study of China’s capital market in order to test the relationship between employee directors and the investment efficiency of listed companies. The results show that employee directors can improve the investment efficiency of listed companies effectively, and this relationship is more significant for state-owned enterprises and enterprises in product markets with low levels of competition. Further research shows that employee directors can restrain not only overinvestment but can also reduce underinvestment. Employee directors can restrain the overinvestment behaviour of state-owned enterprises effectively and reduce underinvestment by non-state-owned enterprises. In product markets with low levels of competition, employee directors can restrain overinvestment, while in product markets with high levels of competition, employee directors can reduce underinvestment. Journal: China Journal of Accounting Studies Pages: 120-144 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2086027 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2086027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:120-144 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2125612_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 145-145 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2125612 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2125612 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:145-145 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2091062_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chenyu Cui Author-X-Name-First: Chenyu Author-X-Name-Last: Cui Author-Name: Guihua He Author-X-Name-First: Guihua Author-X-Name-Last: He Author-Name: Deren Xie Author-X-Name-First: Deren Author-X-Name-Last: Xie Title: Information externalities, analyst research resource allocation, and stock pricing efficiency Abstract: Information is key to decision-making and is a major determinant of investment performance. We hypothesise that as analysts are constrained by their research resources, they collect information with more externalities. Measuring information externalities as a stock’s fundamental correlations with other stocks in the same industry, we find that stocks with high information externalities get more analyst coverage, more (high-quality) analyst reports, and more site visits than those with low information externalities. At the analyst level, we find consistent evidence that individual analysts allocate more effort to firms with high information externalities in their stock portfolios. Consequently, we further demonstrate that stocks with high information externalities are associated with less information delay and are priced more efficiently. Journal: China Journal of Accounting Studies Pages: 1-25 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2091062 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2091062 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2084008_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongxian Zhen Author-X-Name-First: Hongxian Author-X-Name-Last: Zhen Author-Name: Sanfa Wang Author-X-Name-First: Sanfa Author-X-Name-Last: Wang Author-Name: Mingxiang Lian Author-X-Name-First: Mingxiang Author-X-Name-Last: Lian Author-Name: Shijie Zheng Author-X-Name-First: Shijie Author-X-Name-Last: Zheng Title: Do bond investors attend to corporate targeted poverty alleviation? Abstract: This paper incorporates corporate targeted poverty alleviation behaviour into the bond pricing framework for the first time, using a sample of A-share listed companies that issued corporate bonds from 2016 to 2018 to study the impact and mechanism of targeted poverty alleviation behaviour on bond credit spreads. We find that bond-issuing companies’ targeted poverty alleviation behaviour can significantly reduce bond credit spreads, which are more pronounced in subsamples with higher credit risk and lower credit rating and of active participants. In addition, companies’ targeted poverty alleviation behaviour has improved corporate reputation and strategic resource acquisition and reduced information asymmetry and agency costs. Consequently, these results indicate that corporate targeted poverty alleviation is essentially embodied as value features, not tool features, and bond investors can identify the true motivations of engaged enterprises. Journal: China Journal of Accounting Studies Pages: 95-119 Issue: 1 Volume: 10 Year: 2022 Month: 01 X-DOI: 10.1080/21697213.2022.2084008 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2084008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:1:p:95-119 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2086028_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guifeng Shi Author-X-Name-First: Guifeng Author-X-Name-Last: Shi Title: Does industry-specific information disclosure improve trade credit financing? Abstract: This paper examines the influence of the staggered implementation of the Industry Information Disclosure Guidelines on trade credit financing. Using a sample of China’s A-share listed firms from 2007 to 2019, I show that firms obtain significantly more trade credit from their suppliers when they disclose industry-specific information. The main results are robust to numerous additional checks. The positive association is more pronounced when the firm’s financing constraints are stronger, the concentration of suppliers is lower, and the level of social trust and the degree of marketization are higher. Furthermore, this paper finds that the positive association is more pronounced for firms with weaker information transparency and corporate governance, indicating that the Guidelines play a role through the information effect and governance effect. The study enriches the research on the economic consequences of industry-specific information disclosure and the factors affecting trade credit financing. Journal: China Journal of Accounting Studies Pages: 203-227 Issue: 2 Volume: 10 Year: 2022 Month: 04 X-DOI: 10.1080/21697213.2022.2086028 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2086028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:2:p:203-227 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2105676_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guochao Yang Author-X-Name-First: Guochao Author-X-Name-Last: Yang Author-Name: Yize Hu Author-X-Name-First: Yize Author-X-Name-Last: Hu Title: Manufacturing background CEOs and corporate cost management: evidence from listed manufacturing firms Abstract: Manufacturing is fundamental to the real economy. Given the central role of cost management in the manufacturing industry, we study the role of people in firms’ cost management. We find that manufacturing background CEOs significantly decrease cost stickiness. The results can be explained by a manufacturing background CEO’s focus on corporate cost management and his superior ability to choose flexible production to accelerate inventory flow and mitigate the bullwhip effect. We also show that the impact of manufacturing background CEOs on cost stickiness is more prominent in firms with high demand uncertainty, high economic policy uncertainty, high asset intensity, or low customer concentration. Finally, we report evidence that CEOs with manufacturing and finance backgrounds are associated with less cost stickiness, thus confirming the critical role of business-finance integration in cost management. In sum, these findings highlight the importance of talents in building a powerful manufacturing country. Journal: China Journal of Accounting Studies Pages: 274-300 Issue: 2 Volume: 10 Year: 2022 Month: 04 X-DOI: 10.1080/21697213.2022.2105676 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2105676 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:2:p:274-300 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yulan Wang Author-X-Name-First: Yulan Author-X-Name-Last: Wang Author-Name: Xiaochen Dou Author-X-Name-First: Xiaochen Author-X-Name-Last: Dou Author-Name: Zhiyi Liu Author-X-Name-First: Zhiyi Author-X-Name-Last: Liu Title: Mixed-ownership reform and deleveraging of state-owned enterprises: Degree and methods Abstract: Based on data of state-owned enterprises listed on the Shanghai and Shenzhen Stock Exchange from 2007 to 2018, this study examines how mixed-ownership reform affects the deleveraging behaviour of state-owned enterprises (hereafter, SOEs). We find that the higher the degree of equity balance between state-owned shareholders and non-state-owned shareholders of SOEs, the more inclined they are to choose to deleverage. As for the methods of deleveraging, they are more inclined to choose retained earnings and current debt repayment in the deleveraging process. Furthermore, this effect is more pronounced for SOEs with excess leverage, in low marketisation regions and pronounced for both centre SOEs and local SOEs. We also find that mixed-ownership reform increases deleveraging SOEs’ operating performance. The results suggest that mixed-ownership reform can efficiently promote the deleveraging behaviour of SOEs in positive ways. Journal: China Journal of Accounting Studies Pages: 174-202 Issue: 2 Volume: 10 Year: 2022 Month: 04 X-DOI: 10.1080/21697213.2022.2082723 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:2:p:174-202 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2105675_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Si-Bei Yan Author-X-Name-First: Si-Bei Author-X-Name-Last: Yan Author-Name: Hyung-Rok Jung Author-X-Name-First: Hyung-Rok Author-X-Name-Last: Jung Author-Name: Jun Wan Author-X-Name-First: Jun Author-X-Name-Last: Wan Author-Name: Mi-Ok Kim Author-X-Name-First: Mi-Ok Author-X-Name-Last: Kim Title: Case study of Chinese and Korean airlines’ MD&As across countries, markets, and ownership—A regulatory perspective Abstract: We compare the management discussion and analysis sections (MD&As) of 1) Korean and Chinese airlines in their home countries, with different MD&A regulations; 2) a Chinese airline dual-listed in both the Chinese and U.S. markets, with different levels of information disclosure discretion; and 3) ownership types such as state-owned enterprises (SOEs) and non-SOEs with different regulatory pressure. We find that the more liberal the management’s discretion regarding information disclosure and the higher the government’s regulatory pressure, the higher the MD&A quality. Although requiring more forward-looking information in the MD&A is also conducive to enhancing quality, the impact of regulations on MD&A quality is weaker than that of the first two measures. The results have important implications for regulatory agencies. Promulgating legal provisions, such as the safe harbour provision and improving regulatory pressure, is more efficient for augmenting MD&A quality than modifying regulations. Journal: China Journal of Accounting Studies Pages: 251-273 Issue: 2 Volume: 10 Year: 2022 Month: 04 X-DOI: 10.1080/21697213.2022.2105675 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2105675 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:2:p:251-273 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2091061_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lidan Li Author-X-Name-First: Lidan Author-X-Name-Last: Li Author-Name: Wenbin Long Author-X-Name-First: Wenbin Author-X-Name-Last: Long Author-Name: Jun Hu Author-X-Name-First: Jun Author-X-Name-Last: Hu Author-Name: Xianzhong Song Author-X-Name-First: Xianzhong Author-X-Name-Last: Song Title: The provincial border, information costs, and stock price crash risk Abstract: Based on externalities in the allocation of interprovincial resources, we examine how geographic location affects firms’ access to resources and thus their information disclosure and stock price crash risk. The results show that border firms have a higher stock price crash risk than non-border firms. Mechanism tests find that border firms have lower available credit, higher financing costs, smaller fiscal subsidies, higher accrual earnings management, lower accounting conservatism, and a more positive tone in the management discussion and analysis section of the annual report. This indicates that resource shortages and aggressive information disclosure are important drivers of their higher stock price crash risk. Additional tests find no border effect in the borders of integrated areas or borders of areas adjacent to municipalities. Accelerating the digital transformation of the government and the information infrastructure construction, and strengthening external governance can partially alleviate the stock price crash risk of border firms. Journal: China Journal of Accounting Studies Pages: 228-250 Issue: 2 Volume: 10 Year: 2022 Month: 04 X-DOI: 10.1080/21697213.2022.2091061 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2091061 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:2:p:228-250 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2091063_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xuxia Chen Author-X-Name-First: Xuxia Author-X-Name-Last: Chen Author-Name: Jun Wang Author-X-Name-First: Jun Author-X-Name-Last: Wang Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Title: Do the outstanding comments of regulatory reviewers for approved IPOs serve as a valuation signal for investors? Abstract: Since 2015, the China Securities Regulatory Commission (CSRC) has disclosed initial public offering (IPO) companies’ review outcomes and hearing questions. For 15% of the companies that pass the IPO screening process, the CSRC also discloses some of their hearing questions that require further disclosure and clarification after the IPO screening process (termed outstanding comments herein). A company passing the vote means that it has received general approval from the majority of review experts. However, outstanding comments also reflect that some review experts have remaining concerns about the IPO applicant. Results show that approved IPO companies with outstanding comments perform significantly worse than those without outstanding comments both before and after listing, suggesting that outstanding comments serve as a signal of a stock’s valuation. Moreover, investors (particularly institutional ones) appear to perceive the signal of outstanding comments, as they react more negatively around the listing date of such companies. Journal: China Journal of Accounting Studies Pages: 147-173 Issue: 2 Volume: 10 Year: 2022 Month: 04 X-DOI: 10.1080/21697213.2022.2091063 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2091063 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:2:p:147-173 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143679_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu Wang Author-X-Name-First: Yu Author-X-Name-Last: Wang Author-Name: Jiawei Lu Author-X-Name-First: Jiawei Author-X-Name-Last: Lu Author-Name: Xun Zhao Author-X-Name-First: Xun Author-X-Name-Last: Zhao Title: Do bond market participants care about directors’ and officers’ liability insurance?——Empirical evidence based on the pricing of corporate bonds Abstract: Based on the risk hedging perspective, this paper examines the impact of directors’ and officers’ liability insurance (hereafter referred to as D&O liability insurance) on the pricing of corporate bonds. We find that the purchase of D&O liability insurance can effectively reduce corporate bond insurance pricing. The path test shows that the purchase of D&O liability insurance can reduce the bond insurance pricing by improving the quality of company’s internal control. Furthermore, the paper finds that when management power is greater, investor protection is poor or financial risk is high,the impact of the D&O liability insurance is stronger. After purchasing D&O liability insurance, creditors will reduce the use of corporate governance contractual terms, but will set more investments and financing as well as option contractual terms. In addition, companies that purchase D&O liability insurance issue bonds with higher credit ratings and longer bond maturities. Journal: China Journal of Accounting Studies Pages: 367-389 Issue: 3 Volume: 10 Year: 2022 Month: 07 X-DOI: 10.1080/21697213.2022.2143679 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:3:p:367-389 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143677_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mingming Huang Author-X-Name-First: Mingming Author-X-Name-Last: Huang Author-Name: Junsheng Zhang Author-X-Name-First: Junsheng Author-X-Name-Last: Zhang Author-Name: Zheng Huo Author-X-Name-First: Zheng Author-X-Name-Last: Huo Title: Customer relationships in the consolidated financial statements: recognition and value relevance Abstract: Customer relationships are important strategic resources. With a sample of A-share listed firms from 2007 to 2020 in China, this paper examines the recognition and value relevance of customer-related intangible assets. Current accounting standards require an acquirer to recognise identifiable intangible assets acquired in the business combination separately from goodwill. However, stakeholders question the usefulness of the information about customer relationships that are difficult to value reliably. The IASB and IFRIC have discussed a lot about whether to continue to separate customer-related intangible assets from goodwill. We find that firms with more R&D investments are more likely to recognise customer-related intangible assets. We also find that the book value of customer-related intangibles is positively associated with share price, which means recognised customer-related intangibles provide useful information to investors. We report empirical evidence in support of both international and Chinese accounting standards for separate recognition of identifiable intangible assets. Journal: China Journal of Accounting Studies Pages: 390-410 Issue: 3 Volume: 10 Year: 2022 Month: 07 X-DOI: 10.1080/21697213.2022.2143677 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:3:p:390-410 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hang Liu Author-X-Name-First: Hang Author-X-Name-Last: Liu Author-Name: Yichao Zhao Author-X-Name-First: Yichao Author-X-Name-Last: Zhao Title: Cannot investors really price the book-tax differences correctly? Evidence from accelerated depreciation policies Abstract: Extensive studies have found that investors misprice book-tax differences (BTDs). We take the accelerated depreciation policies of fixed assets implemented in China since 2014 as the research setting and investigate the following issues: When a temporary BTD is generated due to the tax preferential policies of accelerated depreciation, and the temporary BTD disclosed in financial statements can be clearly understood by investors, will investors still misprice it? We find that accelerated depreciation policy-induced temporary BTD (AccBTD) and other temporary BTD (OthBTD) are both informative. Furthermore, investors could correctly price AccBTD while misprice OthBTD. Finally, active institutional investors and analysts can promote the correct pricing of AccBTD but cannot alleviate the mispricing of OthBTD. Overall, our evidence suggests that investors do not always misprice BTDs. Specifically, when we decompose the specific components of BTDs and control the measurement errors effectively, we will have completely different findings. Journal: China Journal of Accounting Studies Pages: 301-322 Issue: 3 Volume: 10 Year: 2022 Month: 07 X-DOI: 10.1080/21697213.2022.2143671 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:3:p:301-322 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143675_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Youfu Yao Author-X-Name-First: Youfu Author-X-Name-Last: Yao Author-Name: Lan Zhou Author-X-Name-First: Lan Author-X-Name-Last: Zhou Title: Could regulatory information disclosure impact the behaviour of corporate over-financialization? Evidence from Chinese comment letters Abstract: Taking Chinese A-share listed firms from 2014 to 2018 as our samples, this paper investigates the impact of regulatory information disclosure on corporate over-financialisation behaviour from comment letters. The empirical results show that financialisation-related comment letters can effectively reduce the behaviour of corporate over-financialisation, and this positive governance effect is more pronounced in companies with strong market arbitrage motivation. Further tests show that the more intensity of the financialisation-related comment letters, the higher the governance effect of comment letters on over-financialisation. Specifically, the governance effect of inquiries mechanism is more significant when the financialisation-related comment letters have the questions of “over-financialisation’. From the specific influence mechanism, the governance effect of financialisation-related comment letters is achieved by potential violation cost and the pressure of market attention. Finally, the governance effect of financialisation-related comment letters on over-financialisation can spill over to non-comment-letter-receivers in the same industry or in the same corporation groups. Journal: China Journal of Accounting Studies Pages: 411-433 Issue: 3 Volume: 10 Year: 2022 Month: 07 X-DOI: 10.1080/21697213.2022.2143675 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143675 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:3:p:411-433 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2105679_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Li Dang Author-X-Name-First: Li Author-X-Name-Last: Dang Author-Name: Qiaoling Fang Author-X-Name-First: Qiaoling Author-X-Name-Last: Fang Title: Is integrated auditing superior to separate auditing? Evidence from China Abstract: The purpose of this study is to compare audit effectiveness and audit efficiency between companies that have integrated auditing of internal control over financial reporting (ICFR) and financial statements and companies that have separate auditing. We analyse a sample of Chinese public companies that disclosed their ICFR audit reports from 2011 to 2015. Using the full sample, sub-samples, and a propensity score matching (PSM) sample, we consistently find that companies having integrated auditing exhibit higher financial reporting quality measured by excess non-operating income. The findings regarding audit efficiency are mixed, with limited evidence indicating that an integrated auditor is potentially able to complete two audits without further delay. Overall, our results seem to suggest that integrated auditing is superior to separate auditing in that it enhances audit effectiveness and might improve audit efficiency. Such superiority might be due to knowledge spillover when two related audit services are jointly provided. Journal: China Journal of Accounting Studies Pages: 345-366 Issue: 3 Volume: 10 Year: 2022 Month: 07 X-DOI: 10.1080/21697213.2022.2105679 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2105679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:3:p:345-366 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2105680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Qing Dong Author-X-Name-First: Qing Author-X-Name-Last: Dong Author-Name: Shuwei Sun Author-X-Name-First: Shuwei Author-X-Name-Last: Sun Title: State-owned asset management reform and corporate cash holdings: study on central enterprise income distribution policy Abstract: Based on the data of A-share listed central state-owned enterprises (CSOEs) and non-state-owned listed companies in China from 2003 to 2019, we use propensity score matching and the difference-in-difference method to examine the impact of CSOEs’ income distribution policy on corporate cash holding decisions. The results show that the policy implementation improves corporate cash holding levels. Further analysis found that: (1) corporate financial flexibility can alleviate the policy effect; (2) when the control distance is shorter, and environmental uncertainty is higher, the policy effect is stronger; and (3) the policy has a lagged effect. This study theoretically expands the research on the economic consequences of income distribution policy and the influencing factors of cash holdings. It further aids policymakers in improving the state-owned capital gains distribution system, deepening the reform of state-owned enterprises, and providing empirical evidence at firm level for investors to understand the real impact of the policy. Journal: China Journal of Accounting Studies Pages: 323-344 Issue: 3 Volume: 10 Year: 2022 Month: 07 X-DOI: 10.1080/21697213.2022.2105680 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2105680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:3:p:323-344 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143685_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guoqing Zhang Author-X-Name-First: Guoqing Author-X-Name-Last: Zhang Author-Name: Sicen Chen Author-X-Name-First: Sicen Author-X-Name-Last: Chen Author-Name: Pengdong Zhang Author-X-Name-First: Pengdong Author-X-Name-Last: Zhang Author-Name: Xiaowei Lin Author-X-Name-First: Xiaowei Author-X-Name-Last: Lin Title: Does the random inspection reduce audit opinion shopping? Abstract: The China Securities Regulatory Commission (CSRC) has randomly selected two audit firms each year to check their problems in management and internal control since 2016. Using the random inspections from 2016 to 2018, we construct a staggered DID model and find that the possibility of audit firms engaging in audit opinion shopping decreases after they are inspected. To explore the underlying logic, we document that: (1) the random inspections strengthened audit firms’ management of branch offices, resulting in a more pronounced effect on the practice of branch audit offices; and (2) the policy improved audit firms’ internal control, leading to more pronounced effect in audit firms with a heavy workload and loose control. Further, we show that punishments following the inspections strengthen the basic effect, while the effect of random inspections would be weakened for the big 10 audit firms. Journal: China Journal of Accounting Studies Pages: 528-548 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/21697213.2022.2143685 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143685 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:4:p:528-548 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143682_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Jiang Author-X-Name-First: Wei Author-X-Name-Last: Jiang Author-Name: Yuan Sun Author-X-Name-First: Yuan Author-X-Name-Last: Sun Title: Chairman individualism and cost structure decisions Abstract: Taking a chairman’s native place of origin in Northern (Southern) China as a proxy for chairman individualism (collectivism), this paper examines how such individualism affects firms’ cost structure decisions within a sample of Chinese listed firms. The results show that individualistic chairmen tend to choose a rigid cost structure. Further analysis shows that this relationship exists only in non-state-owned enterprises, when the board has a low level of independence, and when the firm has a low level of financial leverage. This paper contributes to the literature on firms' cost structure decisions in response to risk and on the effect of managerial individualism (collectivism) on corporate strategic cost management. Moreover, this paper provides implications for Chinese firms to realise the advantages of strategic cost management through managers' leadership roles and to achieve transformation and sustainable development. Journal: China Journal of Accounting Studies Pages: 503-527 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/21697213.2022.2143682 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:4:p:503-527 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2148907_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guilong Cai Author-X-Name-First: Guilong Author-X-Name-Last: Cai Author-Name: Jing Deng Author-X-Name-First: Jing Author-X-Name-Last: Deng Author-Name: Rui Ge Author-X-Name-First: Rui Author-X-Name-Last: Ge Author-Name: Guojian Zheng Author-X-Name-First: Guojian Author-X-Name-Last: Zheng Title: The product market power of major customer firms and their suppliers’ performance Abstract: We find that when a major customer has greater market power in its industry, its supplier firm exhibits better performance. The effect of the major customer’s market power on its supplier’s performance is more pronounced when the economic bonding between the customer firm and the supplier is stronger, when the customer firm is geographically closer to its supplier, and when the relationship between the two firms matures. Furthermore, we document that a customer firm’s product market power increases demand stability for its supplier, reduces the supplier’s cost of debt, and improves the supplier’s investment efficiency. Journal: China Journal of Accounting Studies Pages: 435-458 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/21697213.2022.2148907 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2148907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:4:p:435-458 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143688_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xingqiang Du Author-X-Name-First: Xingqiang Author-X-Name-Last: Du Author-Name: Yuhui Xie Author-X-Name-First: Yuhui Author-X-Name-Last: Xie Author-Name: Shaojuan Lai Author-X-Name-First: Shaojuan Author-X-Name-Last: Lai Author-Name: Quan Zeng Author-X-Name-First: Quan Author-X-Name-Last: Zeng Title: Confucian culture and accounting conservatism: evidence from China Abstract: This study investigates the influence of Confucian culture on accounting conservatism. Using a sample of Chinese-listed firms during the period of 2001–2017, our findings reveal that Confucian culture, measured as the number of Confucian temples (schools) within a specific radius around a firm, is significantly positively associated with accounting conservatism, suggesting that Confucian ethics and culture promote accounting conservatism. Moreover, litigation risk attenuates the positive effect of Confucian culture on accounting conservatism. The above findings are robust to a variety of sensitivity tests using alternative proxies for Confucian culture and accounting conservatism. Furthermore, our main conclusions still stand after using the instrumental variable (IV) two-stage regression method and the differential model approach to address the endogeneity issue. Lastly, the positive effect of Confucian culture on accounting conservatism is only valid for non-BIG4-audited firms, firms with lower managerial ownership and firms in highly competitive industries. Journal: China Journal of Accounting Studies Pages: 549-589 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/21697213.2022.2143688 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:4:p:549-589 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143681_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yanheng Song Author-X-Name-First: Yanheng Author-X-Name-Last: Song Author-Name: Rui Xian Author-X-Name-First: Rui Author-X-Name-Last: Xian Author-Name: Dan Yang Author-X-Name-First: Dan Author-X-Name-Last: Yang Title: CEO’s name uniqueness and audit fee Abstract: Borrowed from the relevant research on the impact of name uniqueness on one’s personality, our study extends the research perspective to its impact on external auditors. Using the data of Chinese listed firms in 2009–2019, we find a significantly positive relationship between CEOs’ name uniqueness and audit fees. Further study shows that this influence could be explained by its impact on CEOs' personality traits, resulting in strategic deviance or increased audit effort, rather than its impact on auditors' first impression. The impact of CEOs’ name uniqueness on audit fees is more pronounced when CEOs’ characteristics are more susceptible to their name uniqueness, when companies are more likely to attract auditors’ attention, or when auditors are more likely to be affected by their uniqueness. This paper extends the impact of CEOs’ personality traits on audit fees, and expands the understanding of CEOs and audit decision-making. Journal: China Journal of Accounting Studies Pages: 459-480 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/21697213.2022.2143681 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:4:p:459-480 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143684_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaojian Tang Author-X-Name-First: Xiaojian Author-X-Name-Last: Tang Author-Name: Dongying Du Author-X-Name-First: Dongying Author-X-Name-Last: Du Author-Name: Lina Xie Author-X-Name-First: Lina Author-X-Name-Last: Xie Author-Name: Bin Lin Author-X-Name-First: Bin Author-X-Name-Last: Lin Title: Does the standardisation of tax enforcement improve corporate financial reporting quality? Abstract: Previous studies of tax enforcement neglect the effect of tax-penalty discretionary benchmarks on corporate financial reporting quality. In China, province-level variations in implementing tax-penalty discretionary benchmarks provide a quasi-natural experiment to explore how tax enforcement standardisation affects corporate financial reporting quality. We show that when tax-penalty benchmarks are implemented in every province, there is a more pronounced positive relationship between tax enforcement standardisation and corporate financial reporting quality compared with the ex-ante period. Moreover, this positive relationship is primarily driven by firms with higher degrees of tax avoidance and collusion with tax collectors. Consequently, the implementation of tax-penalty benchmarks means that the standardisation of tax enforcement can improve corporate financial reporting quality. In turn, tax enforcement standardisation can optimise the external governance environment for listed firms and improve financial information disclosure in capital markets. Journal: China Journal of Accounting Studies Pages: 481-502 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/21697213.2022.2143684 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:10:y:2022:i:4:p:481-502 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_880167_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiongyu Huang Author-X-Name-First: Qiongyu Author-X-Name-Last: Huang Author-Name: Minying Cheng Author-X-Name-First: Minying Author-X-Name-Last: Cheng Author-Name: Wenjing Li Author-X-Name-First: Wenjing Author-X-Name-Last: Li Author-Name: Minghai Wei Author-X-Name-First: Minghai Author-X-Name-Last: Wei Title: Listing approach, political favours and earnings quality: Evidence from Chinese family firms Abstract: The listing approach taken by Chinese family firms relates to the political favours that a family firm can obtain from local government, which could have a significant impact on corporate financial reporting behaviour. Using a sample of Chinese family firms over the period from 2003 to 2008, we find that family firms going public through initial public offerings (IPOs) obtain more bank loans, more subsidies and lower tax rates than firms going public through a takeover. Further investigation of the relation between listing approach and the quality of financial reporting shows that the earnings quality is systematically worse for family firms going public through IPOs than those going public through a takeover. Subsample regressions reveal that, in IPO firms, the magnitude of political favours obtained is negatively related to the quality of financial reporting. Journal: China Journal of Accounting Studies Pages: 13-36 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/21697221.2014.880167 File-URL: http://hdl.handle.net/10.1080/21697221.2014.880167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:1:p:13-36 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_887415_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yunsen Chen Author-X-Name-First: Yunsen Author-X-Name-Last: Chen Title: Directors’ social networks and firm efficiency: A structural embeddedness perspective Abstract: The performance of firms is usually influenced by their structural embeddedness in social networks. This paper investigates the effects of structural hole positions of directors on their firms’ operating and investing efficiency, from a corporate finance perspective. We build an interlocking network of the directors in Chinese listed companies, and compute the network constraint index to represent the richness of structural holes in this network. The empirical results show that firms with more structural holes are more efficient in both operating and investing activities (through the channel of reducing their firms’ under-investment problems), and these relations are more pronounced in competitive industries. Further tests find that firms with more structural holes perform better over time. The results suggest that a firm’s ‘structural hole position’ plays an important role in firm efficiency. These findings provide new evidence for the emerging literature of social networks and corporate finance. Journal: China Journal of Accounting Studies Pages: 53-73 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/21697221.2014.887415 File-URL: http://hdl.handle.net/10.1080/21697221.2014.887415 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:1:p:53-73 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_891069_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Author-Name: Junsheng Zhang Author-X-Name-First: Junsheng Author-X-Name-Last: Zhang Title: Stock market reaction to regulatory investigation announcements Abstract: Prior event studies have examined investor wealth losses due to corporate misconduct in China’s capital markets, using the regulator’s formal sanction announcement as the relevant event. However, an important and earlier event (namely, the regulatory investigation announcement) has been overlooked. We find that the market reaction is a decrease of 2% around the sanction event (which is consistent with prior literature), while it reaches a decrease of about 6% around the investigation event, suggesting that focusing on the sanction event alone will substantially underestimate investors’ wealth losses. In exploring the cross-sectional variations of investor reaction to the investigation announcement event, we find that a larger magnitude of prior-year earnings management is significantly associated with more negative abnormal returns, which suggests that investors may use prior financial reporting quality in making decisions when faced with insufficient information. The implication of our evidence for civil lawsuits against corporate misrepresentation in China is also discussed. Journal: China Journal of Accounting Studies Pages: 37-52 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/21697221.2014.891069 File-URL: http://hdl.handle.net/10.1080/21697221.2014.891069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:1:p:37-52 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_893774_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ranjani Krishnan Author-X-Name-First: Ranjani Author-X-Name-Last: Krishnan Title: Causes and consequences of error and bias in management accounting systems Abstract: The purpose of this paper is to provide an overview of management accounting systems, particularly with respect to their influence on error and bias in decision making. It also discusses the implications of such errors and biases for organizations and for policy and suggests avenues for future research. Journal: China Journal of Accounting Studies Pages: 1-12 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/21697221.2014.893774 File-URL: http://hdl.handle.net/10.1080/21697221.2014.893774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:1:p:1-12 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_900213_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2013 Journal: China Journal of Accounting Studies Pages: 75-76 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/21697221.2014.900213 File-URL: http://hdl.handle.net/10.1080/21697221.2014.900213 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:1:p:75-76 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_900218_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 74-74 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/21697221.2014.900218 File-URL: http://hdl.handle.net/10.1080/21697221.2014.900218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:1:p:74-74 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_916886_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Richard Macve Author-X-Name-First: Richard Author-X-Name-Last: Macve Title: What should be the nature and role of a revised Conceptual Framework for International Accounting Standards? Abstract: This paper asks how far we may expect the IASB’s current approach to revising its Conceptual Framework (CF) – as set out in the recent Discussion Paper on further chapters of the revised Framework – to help overcome difficulties such as those identified by Barth, M.E. (2013). Global Comparability in Financial Reporting: What, Why, How, and When? China Journal of Accounting Studies, 1:1, 2–12. She identifies the importance – given the IASB’s aim in its CF to achieve international comparability in financial statements – of developing improved ‘high quality’ standards for recognition and measurement. I argue that the unavoidable conceptual and institutional difficulties inherent in comparing economic ‘realities’ require that the revision of the Framework should be more fundamental than attempting to improve the recognition and measurement elements of the prevailing ‘balance-sheet’ focused model. Rather than continuing to seek universally applicable answers to provide ‘a complete and updated set of concepts to use when it develops or revises IFRS’, it should instead focus on highlighting the key questions that IASB needs to consider when setting standards. I comment on possible implications for the future development of accounting internationally, and on future research opportunities, with particular reference to China. Journal: China Journal of Accounting Studies Pages: 77-95 Issue: 2 Volume: 2 Year: 2014 Month: 4 X-DOI: 10.1080/21697221.2014.916886 File-URL: http://hdl.handle.net/10.1080/21697221.2014.916886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:2:p:77-95 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_926197_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shenglan Chen Author-X-Name-First: Shenglan Author-X-Name-Last: Chen Author-Name: Hui Ma Author-X-Name-First: Hui Author-X-Name-Last: Ma Title: Competitive pressure, economies of scale, and auditor industry specialisation premium Abstract: This paper examines the premium due to auditor industry specialisation in China’s audit market. Using a sample of China’s listed firms from 2001 to 2011, we find that industry specialist auditors earn significant premiums at the province level. We also find that competitive pressure has a negative effect on the industry specialisation premium. Furthermore, we document that specialist auditors pass on lower cost savings from economies of scale to clients when facing greater competitive pressure. The results remain robust after controlling for the possible endogeneity issues and using different samples for sensitivity tests. Our results have important implications for future research on the auditor industry specialisation premium. Journal: China Journal of Accounting Studies Pages: 96-117 Issue: 2 Volume: 2 Year: 2014 Month: 4 X-DOI: 10.1080/21697213.2014.926197 File-URL: http://hdl.handle.net/10.1080/21697213.2014.926197 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:2:p:96-117 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_917030_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dan Yang Author-X-Name-First: Dan Author-X-Name-Last: Yang Title: Exploring the determinants of voluntary adoption of IFRS by unlisted firms: A comparative study between the UK and Germany Abstract: This study provides direct evidence on unlisted firms’ adoption of International Financial Reporting Standards (IFRS), differing from previous studies that focused on listed firms. The current literature documents little evidence regarding the determinants of voluntary adoption of IFRS by unlisted firms. This study aims to fill in this gap with respect to both firm attributes and country attributes. From examining a sample of unlisted firms in the UK and Germany, I find that firm size, leverage, legal form, profitability and country-level institutional environment contribute to IFRS choices by unlisted firms. I further find that the country-level institutional environment fails to strengthen or weaken the role of firm-level factors affecting IFRS adoption. The evidence in this study offers insights regarding the determinants of unlisted firms’ preferences for adoption of accounting standards, and suggests which types of unlisted firms prefer to use and benefit from IFRS. Journal: China Journal of Accounting Studies Pages: 118-136 Issue: 2 Volume: 2 Year: 2014 Month: 4 X-DOI: 10.1080/21697221.2014.917030 File-URL: http://hdl.handle.net/10.1080/21697221.2014.917030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:2:p:118-136 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_926854_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Donghua Zhou Author-X-Name-First: Donghua Author-X-Name-Last: Zhou Author-Name: Yujie Zhao Author-X-Name-First: Yujie Author-X-Name-Last: Zhao Title: Dividend policy and cash flow manipulation: Evidence from China Abstract: The China Securities Regulatory Commission (CSRC) issued a dividend policy in 2006 which set minimum payout levels for firms wishing to issue seasoned equity offerings. This paper investigates how listed Chinese firms may inflate reported cash flow from operations in order to reach the threshold set by the dividend policy. The results indicate a high level of cash flow manipulation among firms issuing seasoned equity offerings after 2006, the year when the dividend policy was implemented, suggesting that this manipulation is undertaken in response to the dividend policy. We further find that firms issuing seasoned equity offerings inflate cash flow upwards through working capital items and by including tax refunds in their cash flows statements after the implementation of the dividend policy. The manipulation of real cash flow activities by firms issuing seasoned equity offerings eventually damages the value of their firm. Journal: China Journal of Accounting Studies Pages: 137-159 Issue: 2 Volume: 2 Year: 2014 Month: 4 X-DOI: 10.1080/21697213.2014.926854 File-URL: http://hdl.handle.net/10.1080/21697213.2014.926854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:2:p:137-159 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_953381_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Ohlson Author-X-Name-First: James Author-X-Name-Last: Ohlson Title: Transitory noise in reported earnings: Implications for forecasting and valuation Abstract: The paper considers a setting where the present value of expected dividends determines price and the information to forecast the future includes reported earnings. In the model, reported earnings have been garbled by transitory noise, which cannot be inferred. ‘True’, but now unobservable, earnings are permanent as in Ohlson (1992). The stage setting result shows that capitalized expected reported earnings for the next period equals price regardless of the noise. More subtle is the influence of current reported earnings on the forecast of future expected earnings and, relatedly, the valuation in terms of the history of data. Because of the noise term, Bayesian updating implies that the investor uses the entire earnings history to learn about permanent earnings and to forecast future expected reported earnings. Specifically, the main result shows that the next period’s expected earnings equal a weighted average of (i) current reported earnings and (ii) beginning-of-the-period expected earnings for the current period. This framework is often referred to as ‘adaptive expectations’ because there is gradual learning and updating. It depends critically on dividend policy irrelevance. The paper goes on to show that the weight on current earnings (term (i)) decreases as the noise increases. The model has testable implications for returns on earnings regressions and how one operationalizes value-relevance. Journal: China Journal of Accounting Studies Pages: 161-171 Issue: 3 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/21697213.2014.953381 File-URL: http://hdl.handle.net/10.1080/21697213.2014.953381 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:3:p:161-171 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_921366_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gaoping Zheng Author-X-Name-First: Gaoping Author-X-Name-Last: Zheng Author-Name: Jian Xue Author-X-Name-First: Jian Author-X-Name-Last: Xue Author-Name: Xiao Chen Author-X-Name-First: Xiao Author-X-Name-Last: Chen Title: Affiliated management and firm value: Evidence from China Abstract: We provide evidence on how the presence of a top manager who is a controlling shareholder or the employee of a controlling shareholder (i.e. affiliated management) is associated with firm value. By analysing the data of Chinese listed firms in the A-share stock market from 2001 to 2009, we find that affiliated management is negatively associated with firm value. Furthermore, although firms with affiliated management have higher return on assets and return on sales, affiliated management is positively associated with the value and the frequency of loan-based related party transactions and with the likelihood of irregularity in information disclosure. Our findings imply that even if affiliated management may enhance shareholders’ ability to monitor managers and increase the operational profitability, affiliated management can facilitate the expropriation of the interests of the minority shareholders by the controlling shareholders. Journal: China Journal of Accounting Studies Pages: 172-199 Issue: 3 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/21697213.2014.921366 File-URL: http://hdl.handle.net/10.1080/21697213.2014.921366 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:3:p:172-199 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_945131_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gang Zhao Author-X-Name-First: Gang Author-X-Name-Last: Zhao Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Yutao Wang Author-X-Name-First: Yutao Author-X-Name-Last: Wang Title: Accounting conservatism, and bank loan contracts: Evidence from China Abstract: Accounting conservatism plays an important role in bank loan contracts. A high degree of accounting conservatism can reduce the risks faced by bank lenders through reporting losses in a timely manner. Banks may then offer preferential policies to borrowers. This paper investigates this hypothesis, using hand-collected data on bank loans granted to Chinese A-share listed companies from 2000 to 2007. The empirical results show that companies with stronger conservatism tend to obtain larger loan amounts with lower interest rates and longer maturities. In addition, we find that the effect of accounting conservatism on bank loans is more significant in regions with better legal environments, more preferential policies, and less intervention from the local government. Journal: China Journal of Accounting Studies Pages: 200-227 Issue: 3 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/21697213.2014.945131 File-URL: http://hdl.handle.net/10.1080/21697213.2014.945131 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:3:p:200-227 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_959413_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jiacai Xiong Author-X-Name-First: Jiacai Author-X-Name-Last: Xiong Author-Name: Dongwei Su Author-X-Name-First: Dongwei Author-X-Name-Last: Su Title: Stock liquidity and capital allocation efficiency: Evidence from Chinese listed companies Abstract: Based on market microstructure theories and evidence, this paper investigates the relationship between stock liquidity and capital allocation efficiency using Chinese listed companies from 1998 to 2011. This paper finds that stock liquidity helps improve investment efficiency, mitigating both overinvestment and underinvestment. This finding is robust to numerous sensitivity analyses, including controls for endogeneity and for the other known determinants of investment efficiency, the choice of the measure of stock liquidity and investment efficiency. Further analysis shows that stock liquidity improves corporate capital allocation efficiency by reducing agency costs and increasing the information content of share prices. Journal: China Journal of Accounting Studies Pages: 228-252 Issue: 3 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/21697213.2014.959413 File-URL: http://hdl.handle.net/10.1080/21697213.2014.959413 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:3:p:228-252 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_953383_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bin Ke Author-X-Name-First: Bin Author-X-Name-Last: Ke Title: A personal perspective on protecting investors of publicly listed Chinese firms Abstract: The objective of this paper is to provide a personal perspective on how to protect investors of publicly listed Chinese firms. The key points of my discussion can be summarized as follows. First, I describe China’s investor protection problems and then discuss the importance of investor protection in China. This discussion raises the possibility that strong investor protection may not be a necessary condition for a nation’s economic prosperity. Second, I propose a conceptual framework that I argue all stakeholders should use when judging the superiority of alternative investor protection mechanisms. Third, I analyze the challenges and opportunities for academic researchers interested in studying China’s investor protection. I highlight the difficulty of drawing causal inferences from observed data, the difficulty of quantifying all costs and benefits of regulatory reforms, and the difficulty of China’s unique institutional environment, which may call for investor protection mechanisms with Chinese characteristics. I also identify exciting new research opportunities that China presents to corporate governance researchers. Journal: China Journal of Accounting Studies Pages: 253-263 Issue: 4 Volume: 2 Year: 2014 Month: 10 X-DOI: 10.1080/21697213.2014.953383 File-URL: http://hdl.handle.net/10.1080/21697213.2014.953383 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:4:p:253-263 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_968753_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fang Wang Author-X-Name-First: Fang Author-X-Name-Last: Wang Author-Name: Hong Zhou Author-X-Name-First: Hong Author-X-Name-Last: Zhou Title: Types of guarantees and their relation to external auditing：Evidence from the Chinese bond market Abstract: Guarantee conditions and external auditing are both key parts of debt contracts. Understanding the relationship between guarantee conditions and external auditing is crucial for the improvement of debt contract efficiency and maximization of enterprise value. With non-listed enterprises in the Chinese bond market from 2008 to 2013 as the study sample, this paper investigates the relationship between different types of guarantee and external auditing. The empirical result indicates that: a related-party guarantee is significantly positively correlated with high-quality external auditing, while a local-government guarantee (in which the guarantor and bond issuer belong to the same local government) is significantly negatively correlated with high-quality external auditing. The research also shows that high-quality external auditing is significantly negatively related to bond issuance cost only if companies use a related-party guarantee. The reason is that a local-government guarantee implies the credit and security of local government, which reduces debt agency conflict and the demand for high-quality external auditing, while a related-party guarantee does not reduce information asymmetry, but increases the credit risk of bonds. This risk can be recognized by investors in the Chinese bond market which is dominated by institutional investors, thus causing stronger demand for high-quality external auditing. The result shows that a guarantee substitutes for external auditing when the guarantee is positive, otherwise external auditing is a supplement to a guarantee. Journal: China Journal of Accounting Studies Pages: 264-293 Issue: 4 Volume: 2 Year: 2014 Month: 10 X-DOI: 10.1080/21697213.2014.968753 File-URL: http://hdl.handle.net/10.1080/21697213.2014.968753 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:4:p:264-293 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_982004_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Dong Chen Author-X-Name-First: Dong Author-X-Name-Last: Chen Author-Name: Xiaoli Hu Author-X-Name-First: Xiaoli Author-X-Name-Last: Hu Title: External auditor types and the cost stickiness of listed companies Abstract: External auditing is an important method of corporate governance that can effectively monitor and restrict a manager’s opportunistic behaviour and reduce cost stickiness. We focus on Chinese A-shares listed companies from 2002 to 2010 to explore the governance role of external auditors in cost stickiness. We classify audit firms into three types: the Big Four International, the Big Ten Domestic, and the non-Big Ten Domestic. The results show that the cost stickiness of firms audited by the Big Four International is significantly lower, while the cost stickiness difference between firms audited by the latter two types is not significant. Further tests show that the restriction on cost stickiness for the Big Four International is more significant when the largest shareholder’s shareholding ratio is lower or when the local market is less developed. These results indicate that the restriction placed by audit quality on cost stickiness varies with other corporate governance mechanisms. Our results are qualitatively unchanged under different robustness tests, including propensity score matching. This study shows that Big Four International audit firms can better reduce cost stickiness, which provides evidence of the higher audit quality of these firms and extends the study of restrictive factors on cost stickiness to external corporate governance mechanisms. Journal: China Journal of Accounting Studies Pages: 294-322 Issue: 4 Volume: 2 Year: 2014 Month: 10 X-DOI: 10.1080/21697213.2014.982004 File-URL: http://hdl.handle.net/10.1080/21697213.2014.982004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:4:p:294-322 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_984265_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhi Jin Author-X-Name-First: Zhi Author-X-Name-Last: Jin Author-Name: Shunlin Song Author-X-Name-First: Shunlin Author-X-Name-Last: Song Author-Name: Xue Yang Author-X-Name-First: Xue Author-X-Name-Last: Yang Title: The role of female directors in corporate investment in China Abstract: This paper investigates the effects of regional market environment and organisational-power environment on the relationship between female directors and corporate-investment efficiency in the Chinese institutional context. Our results show that although a higher proportion of female directors is, in general, associated with a lower level of investment efficiency, both a stronger market environment and a lower power concentration may attenuate the negative effect of female directors on investment efficiency. The association between female directors and investment efficiency is negative and significant in regions with a weaker market environment and in firms with a higher power concentration, but insignificant in regions with a stronger market environment and in firms with a lower power concentration. These findings indicate the importance of considering a regional environment and organisational environment when examining the role of female directors in board governance. Journal: China Journal of Accounting Studies Pages: 323-344 Issue: 4 Volume: 2 Year: 2014 Month: 10 X-DOI: 10.1080/21697213.2014.984265 File-URL: http://hdl.handle.net/10.1080/21697213.2014.984265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:2:y:2014:i:4:p:323-344 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1011823_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Author-Name: Yulong Yang Author-X-Name-First: Yulong Author-X-Name-Last: Yang Author-Name: Zhengfei Lu Author-X-Name-First: Zhengfei Author-X-Name-Last: Lu Title: Are accounting estimate changes associated with an aggressive earnings effect? Empirical evidence Abstract: This study investigates the earnings effect associated with two major types of accounting estimate changes (i.e., revision of the percentage allowance for doubtful accounts receivable and revision of the depreciation rate) made by Chinese listed firms during 2003–2011. We find that the more a firm’s accounting estimate diverges from the industry-level estimate for the same category of assets, the more likely is the firm to change the estimate in convergence with (rather than deviating further from) the industry level in the following period. Moreover, the tendency to converge with the industry-level estimate is significantly stronger for previously aggressive estimates than for previously conservative estimates. These findings are consistent with the notion that management discretion in accounting estimates is restrained by the demand for verifiability of accounting information and the firm’s underlying economic forces, thus overall decreasing the degree of earnings aggressiveness. Journal: China Journal of Accounting Studies Pages: 1-23 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/21697213.2015.1011823 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1011823 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1012323_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ming Zhong Author-X-Name-First: Ming Author-X-Name-Last: Zhong Author-Name: Zhenzhen Sun Author-X-Name-First: Zhenzhen Author-X-Name-Last: Sun Author-Name: Gene Lai Author-X-Name-First: Gene Author-X-Name-Last: Lai Author-Name: Tong Yu Author-X-Name-First: Tong Author-X-Name-Last: Yu Title: Cultural influence on insurance consumption: Insights from the Chinese insurance market Abstract: Despite fast growth in the past three decades, the Chinese insurance market is underdeveloped in terms of insurance density and penetration. In this study, we examine the cultural influence on insurance consumption in China and present evidence on the culture influence hypothesis. We find that demand-related factors explain insurance consumption while supply factors do not. Among the demand-side variables, those closely related to culture (i.e., percentage of saving in GDP and fraction of urban population) dominate economy-based variables in driving insurance consumption. Moreover, we obtain consistent evidence regarding cultural influence on insurance consumption using an international data-set across 56 countries. In general, our finding suggests that culture plays a significant role in determining insurance consumption. Journal: China Journal of Accounting Studies Pages: 24-48 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/21697213.2015.1012323 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1012323 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:1:p:24-48 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1015370_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guangyong Lei Author-X-Name-First: Guangyong Author-X-Name-Last: Lei Author-Name: Wenzhong Wang Author-X-Name-First: Wenzhong Author-X-Name-Last: Wang Author-Name: Mo Liu Author-X-Name-First: Mo Author-X-Name-Last: Liu Title: Political uncertainty, dividend policy adjustments and market effects Abstract: By studying Chinese firms that issued A-shares in the Shanghai and Shenzhen markets from 2004 to 2010, we examine how political uncertainty, caused by a change of Party chief at the municipal level, affects firms’ cash dividend decisions. We find that political uncertainty leads to a more prudent cash dividend policy. First, non-dividend-payers are less likely to initiate dividends due to political uncertainty. Secondly, political uncertainty significantly reduces the level of dividend payments. Compared with privately-owned firms, state-owned firms are more likely to adopt prudent cash dividend policies. The prudent adjustments of cash dividend policies due to political uncertainty have significant positive market effects. Journal: China Journal of Accounting Studies Pages: 49-83 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/21697213.2015.1015370 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1015370 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:1:p:49-83 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1021111_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 84-84 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/21697213.2015.1021111 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1021111 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:1:p:84-84 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1020082_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2014 Journal: China Journal of Accounting Studies Pages: 85-86 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/21697213.2015.1020082 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1020082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:1:p:85-86 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1045401_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Zhen Li Author-X-Name-First: Zhen Author-X-Name-Last: Li Author-Name: Donghua Chen Author-X-Name-First: Donghua Author-X-Name-Last: Chen Author-Name: Shimin Chen Author-X-Name-First: Shimin Author-X-Name-Last: Chen Title: Political ranks, incentives and firm performance Abstract: Managers in China’s state-owned enterprises (SOEs) keep their ranks within a political hierarchy system either explicitly or implicitly, and enjoy different kinds of welfare affiliated to these ranks. In this paper, we analyse how the political rank system works as an incentive on the managers of SOEs and empirically examine the effect of political hierarchy on firm performance. We find that the higher is the political rank of a firm’s manager, the better the firm performs. We further find that managers’ cash compensation does not increase with their political rank, suggesting that political rank provides incentives in addition to cash compensation. Journal: China Journal of Accounting Studies Pages: 87-108 Issue: 2 Volume: 3 Year: 2015 Month: 4 X-DOI: 10.1080/21697213.2015.1045401 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1045401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:2:p:87-108 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1048501_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuting Wu Author-X-Name-First: Yuting Author-X-Name-Last: Wu Author-Name: Utz Schäffer Author-X-Name-First: Utz Author-X-Name-Last: Schäffer Title: Organisational identification and decision-making use of decoupled performance measurement systems Abstract: Based on the social identity approach, this study examines how dual organisational identification of subsidiary managers in multinational corporations (MNCs) influences their use of decoupled performance measurement systems (PMS) for decision-making. We use questionnaires to survey 110 managers at Chinese subsidiaries of MNCs. We find that subsidiary managers’ identification with an organisation, either the subsidiary or the corporation, enhances their evaluation as well as their decision-making use of the PMS initiated by the organisation. Furthermore, having a dominant organisational identification reduces the decision-making use of the PMS associated with the other organisation. Journal: China Journal of Accounting Studies Pages: 109-135 Issue: 2 Volume: 3 Year: 2015 Month: 4 X-DOI: 10.1080/21697213.2015.1048501 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1048501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:2:p:109-135 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1023694_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongjian Wang Author-X-Name-First: Hongjian Author-X-Name-Last: Wang Author-Name: Qingyuan Li Author-X-Name-First: Qingyuan Author-X-Name-Last: Li Author-Name: Yana Chen Author-X-Name-First: Yana Author-X-Name-Last: Chen Title: Earnings management, business cycle, and product market competition Abstract: Using annual data from non-financial listed companies in China between 2001 and 2011, this paper empirically examines the degree and key mechanism of upwards earnings management by companies under cyclical fluctuations of the macro-economy. We find that: firstly, upwards earnings management is significantly and positively correlated with the growth rate of the macro-economy, indicating a relatively strong pro-cyclical effect; secondly, the pro-cyclical effect of upwards earnings management will be more significant if the management expects corporate profit to be lower than the average profit for the industry; thirdly, the pro-cyclical effect of upwards earnings management will be more significant if the company faces greater pressure from product market competition. Further tests reveal that the greater the incentive for management, the greater the financing restrictions, and the more sensitive the industry is to the economic cyclical fluctuations, then the more significant is the pro-cyclical effect of upwards earnings management. The results demonstrate that the key mechanism of upwards earnings management during the economic boom is the expected profit based on the difference between the previous year’s expected firm’s profit and that year’s average profit for the industry, as well as the pressure of product market competition. Thus, the combination of the macro-economic state and the degree of product market competition will play an important role in understanding earnings management behaviour. Journal: China Journal of Accounting Studies Pages: 136-157 Issue: 2 Volume: 3 Year: 2015 Month: 4 X-DOI: 10.1080/21697213.2015.1023694 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1023694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:2:p:136-157 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1005563_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yamin Zeng Author-X-Name-First: Yamin Author-X-Name-Last: Zeng Author-Name: Junsheng Zhang Author-X-Name-First: Junsheng Author-X-Name-Last: Zhang Title: Loan accessibility for foreign-invested enterprises in China Abstract: The paper examines loan accessibility for foreign-invested enterprises (FIEs) in the Chinese credit market. We find that FIEs receive more favourable terms when borrowing from banks, even compared with state-owned enterprises (SOEs). First, FIEs have more lines of credit, and their unused loan ratios are higher. Second, FIEs are not different from SOEs in aspects of collateral requirement, collateral ratio and the need for bribery. Third, FIEs have obtained bank loans more easily since the third bank reform launched in 2003. The results imply that developing economies should pay more attention to the fund crowding-out effect of FIEs, which may exacerbate the financial constraints on domestic firms. Journal: China Journal of Accounting Studies Pages: 158-179 Issue: 2 Volume: 3 Year: 2015 Month: 4 X-DOI: 10.1080/21697213.2015.1005563 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1005563 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:2:p:158-179 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1062343_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Danlu Bu Author-X-Name-First: Danlu Author-X-Name-Last: Bu Author-Name: Caihong Wen Author-X-Name-First: Caihong Author-X-Name-Last: Wen Author-Name: Rajiv D. Banker Author-X-Name-First: Rajiv D. Author-X-Name-Last: Banker Title: Implications of asymmetric cost behaviour for analysing financial reports of companies in China Abstract: Asymmetric cost behaviour analysis emphasises the role of deliberate managerial decisions. In this paper, we find that asymmetric cost behaviour is also a pervasive phenomenon in China. Specifically, SOEs have more cost stickiness than non-SOEs and companies with executive shareholding have more cost stickiness than those without executive shareholding. Secondly, we find that the cost variability and cost stickiness model (separate earnings into cost variability with sales revenue and stickiness in costs with sales declines) provides substantial improvement in forecasting accuracy over other models using only the line items in financial statements. Finally, we find that both conditional conservatism and cost stickiness influence the linear relation between earnings and performance measures. We suggest that future empirical tests on conditional conservatism should control for the potential confounding effect of sticky costs. Our results from Chinese firms provide evidence on the accuracy of earnings forecast and conservatism, and contain important implications for both cost accounting research and financial accounting research. Journal: China Journal of Accounting Studies Pages: 181-208 Issue: 3 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/21697213.2015.1062343 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1062343 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:3:p:181-208 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1070043_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chen Ma Author-X-Name-First: Chen Author-X-Name-Last: Ma Author-Name: Junrui Zhang Author-X-Name-First: Junrui Author-X-Name-Last: Zhang Author-Name: Bei Yang Author-X-Name-First: Bei Author-X-Name-Last: Yang Title: Financial restatement and auditor dismissal Abstract: This study extends the prior literature by examining the incidence of auditor dismissal in China in the year following the restatement announcement and asks whether the direction of auditor turnover is affected by financial restatement. We document a higher likelihood of auditor dismissal in the 12-month period following the restatement announcement for restating firms than for non-restating firms. Additionally, we test the effect of financial restatement on the direction of auditor turnover. Although we find there exists no significant relationship between restatement and the direction of auditor turnover, we do find that restating firms are more likely to replace the incumbent auditor with a reputable auditor following a fraud-related restatement announcement, and that restating firms are more likely to replace the incumbent auditor with a more acquiescent auditor following an error-related restatement announcement. Our findings confirm the argument of ‘restoring reputation’ for a fraud-related restatement, and that of ‘seeking acquiescence’ for an error-related restatement. Journal: China Journal of Accounting Studies Pages: 209-229 Issue: 3 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/21697213.2015.1070043 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1070043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:3:p:209-229 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1055776_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaoke Wang Author-X-Name-First: Xiaoke Author-X-Name-Last: Wang Author-Name: Yanyan Wang Author-X-Name-First: Yanyan Author-X-Name-Last: Wang Author-Name: Lisheng Yu Author-X-Name-First: Lisheng Author-X-Name-Last: Yu Author-Name: Yuping Zhao Author-X-Name-First: Yuping Author-X-Name-Last: Zhao Author-Name: Zhenyu Zhang Author-X-Name-First: Zhenyu Author-X-Name-Last: Zhang Title: Engagement audit partner experience and audit quality Abstract: We explore Chinese market data to examine the relation between the experience of the engagement audit partner and audit quality. We find a negative association between absolute/income-increasing abnormal accruals and the audit partner experience. In addition, we find investors do care about the experience of the engagement audit partner. The earnings response coefficient is higher for firms audited by more experienced auditors. These results are robust even after controlling for audit firm characteristics. Our findings are consistent with the notion that audit partner experience increases audit quality. We also performed sensitivity tests using the propensity of engagement partners to issue going-concern opinions to financially distressed clients and find consistent results. Journal: China Journal of Accounting Studies Pages: 230-253 Issue: 3 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/21697213.2015.1055776 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1055776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:3:p:230-253 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1067854_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hang Liu Author-X-Name-First: Hang Author-X-Name-Last: Liu Author-Name: Yixin Zhang Author-X-Name-First: Yixin Author-X-Name-Last: Zhang Author-Name: Shenghao Gao Author-X-Name-First: Shenghao Author-X-Name-Last: Gao Title: Dividend tax and capital structure: Evidence from China Abstract: The extant literature focuses mostly on the impact of corporate tax on capital structure. Few studies explore this impact from the perspective of personal tax. Evidence from a Chinese institutional background is especially limited. The 2012 dividend tax reform in China directly links individual investors’ dividend tax to the length of the share holding period. Using this reform, we find that firms with a long (short) investors’ share holding period experience a significant decrease (increase) in debt financing due to decreased (increased) dividend tax. We also show that the effect of dividend tax on capital structure is more pronounced in large dividend payout firms. Further, we find that the effect of dividend tax on debt varies among the different forms of debt financing. Our study adds to the literature on tax and corporate finance and fills a gap in Chinese research on related areas. Journal: China Journal of Accounting Studies Pages: 254-273 Issue: 3 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/21697213.2015.1067854 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1067854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:3:p:254-273 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1077648_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: The booming CPA profession in China Journal: China Journal of Accounting Studies Pages: 274-275 Issue: 3 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/21697213.2015.1077648 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1077648 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:3:p:274-275 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1103564_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Erratum Journal: China Journal of Accounting Studies Pages: 276-276 Issue: 3 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/21697213.2015.1103564 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1103564 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:3:p:276-276 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1100088_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chunfei Wang Author-X-Name-First: Chunfei Author-X-Name-Last: Wang Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Author-Name: Tiebing Zeng Author-X-Name-First: Tiebing Author-X-Name-Last: Zeng Title: Audit firm governance of branches and office-level acceptance of initial engagement: Evidence from the CICPA survey data Abstract: This study examines the impact of an audit firm’s governance of branches on the initial engagement acceptance by branches. Using the survey data on audit firms’ governance of branches from the Chinese Institute of Certified Public Accountants (CICPA), we find that, compared with branches that are better governed by the audit firm, weakly-governed branches are more likely to accept initial engagement with a prior-year modified audit opinion. Further, for initial engagements with a prior-year modified audit opinion, the tendency of weakly governed branches to continuously issue a modified audit opinion is weaker than better governed branches. Our evidence is consistent with the notion that an audit firm’s internal governance has a positive effect on the effectiveness of audit firm’s quality control. Journal: China Journal of Accounting Studies Pages: 277-293 Issue: 4 Volume: 3 Year: 2015 Month: 10 X-DOI: 10.1080/21697213.2015.1100088 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1100088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:4:p:277-293 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1100089_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhe Wei Author-X-Name-First: Zhe Author-X-Name-Last: Wei Author-Name: Jian Xue Author-X-Name-First: Jian Author-X-Name-Last: Xue Title: Fair value accounting of financial assets and analyst forecasts Abstract: We examine how listed firms’ financial asset holdings affect analyst forecasts. Using China A-share firms over the period 2009–2011, we find that (1) listed firms sell available-for-sale securities (AFS) to meet or beat analyst forecasts, and (2) that when firms hold AFS, their analyst forecasts are more accurate, less biased and less dispersed. However, whether firms hold trading securities (TS) has no significant effect on either analyst forecast accuracy or forecast dispersion. Further examination indicates that listed firms use AFS to manipulate earnings, and that outside governance by the financial market and legal environment cannot moderate this opportunistic behaviour. Finally, our empirical results show that analysts can see through firms’ earnings management in selling AFS. Thus, our results suggest that standard setters should consider managers’ opportunistic behaviour in derecognising financial assets. Journal: China Journal of Accounting Studies Pages: 294-319 Issue: 4 Volume: 3 Year: 2015 Month: 10 X-DOI: 10.1080/21697213.2015.1100089 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1100089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:4:p:294-319 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1100090_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hang Liu Author-X-Name-First: Hang Author-X-Name-Last: Liu Author-Name: Xiaorong Li Author-X-Name-First: Xiaorong Author-X-Name-Last: Li Title: Government decentralisation and corporate fraud: Evidence from listed state-owned enterprises in China Abstract: This paper examines the economic consequences of government decentralisation from the perspective of corporate fraud. Theoretically, government decentralisation reduces the political costs of state intervention and hence decreases the probability of state-owned enterprises (SOEs) to engage in fraud. It also aggravates the agency costs (the costs of managerial self-dealing), thereby increasing the probability of SOEs to commit fraud. Using pyramidal layers as a proxy of government decentralisation for SOEs, empirical results show that government decentralisation significantly lowers the probability of SOEs to commit fraud. Further categorisation of types of fraud shows that government decentralisation primarily deters disclosure-related fraud and market transaction-related fraud. Finally, the effect of decentralisation on corporate fraud is more pronounced for SOEs in which government intervention is more likely. Journal: China Journal of Accounting Studies Pages: 320-347 Issue: 4 Volume: 3 Year: 2015 Month: 10 X-DOI: 10.1080/21697213.2015.1100090 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1100090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:4:p:320-347 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1100087_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shunlin Song Author-X-Name-First: Shunlin Author-X-Name-Last: Song Author-Name: Siyuan Tang Author-X-Name-First: Siyuan Author-X-Name-Last: Tang Title: Investor sentiment, underwriters’ behaviour and IPO pricing: Empirical analysis from off-line institutional investors’ bids Abstract: Using detailed bid data of institutional investors from 380 Chinese IPO firms, this paper examines the roles of investor sentiment and underwriters in the IPO pricing process. The results show that the higher the investor sentiment, the higher the bids that institutional investors will offer in the inquiry stage. In addition, underwriters will further raise the issue price based on the bid price offered by the institutional investors. Although the increased issue price is not related to investor sentiment, it has a significant negative correlation with the gap between the bids of institutional investors and the intrinsic value of the companies. Finally, we also find that investor sentiment is negatively correlated with IPO underpricing (intrinsic value less the issue price) and positively correlated with IPO first-day returns. These findings add to the IPO pricing literature and have important implications for market-oriented reforms of IPO pricing. Journal: China Journal of Accounting Studies Pages: 348-373 Issue: 4 Volume: 3 Year: 2015 Month: 10 X-DOI: 10.1080/21697213.2015.1100087 File-URL: http://hdl.handle.net/10.1080/21697213.2015.1100087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:4:p:348-373 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1104118_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: China’s strategy of promoting larger and more competitive accounting firms Journal: China Journal of Accounting Studies Pages: 374-375 Issue: 4 Volume: 3 Year: 2015 Month: 10 X-DOI: 10.1080/21697213.2016.1104118 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1104118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:3:y:2015:i:4:p:374-375 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144971_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jennifer Wu Tucker Author-X-Name-First: Jennifer Wu Author-X-Name-Last: Tucker Author-Name: Xinmin Zhang Author-X-Name-First: Xinmin Author-X-Name-Last: Zhang Title: Corporate disclosure and research opportunities in China Abstract: This article is developed from the authors’ keynote speeches at the Second Research Conference of the China Journal of Accounting Studies in November 2014 in Beijing, sponsored by the Accounting Society of China. We first discuss the importance of corporate disclosure and the importance of disclosure research in the US. We then discuss the opportunities of disclosure research in the Chinese setting and provide advice. Journal: China Journal of Accounting Studies Pages: 1-14 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144971 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:1-14 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144970_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Huang Author-X-Name-First: Jun Author-X-Name-Last: Huang Author-Name: Ting Li Author-X-Name-First: Ting Author-X-Name-Last: Li Title: Earnings management, IPO screening and resource allocation efficiency Abstract: Employing IPO firms from 2006 to 2012 as the sample and taking the perspective of earnings management, this paper examines the decision efficiency of the Stock Issue Examination and Verification Committee (SIEVC) in China. We find that the rate of passing IPO screening is negatively correlated with firms’ earnings management, but this relationship is only found for the high-level earnings management. Further analyses show that when IPO firms are state-owned enterprises (SOEs) or receive industry support from government, their IPO applications are less likely to be rejected for earnings management. Meanwhile, political connection and business complexity weaken the negative relationship between the rate of passing the IPO screening and firms’ earnings management. Finally, we find that IPO firms with more earnings management have lower stock returns and worse accounting performance after listing. Journal: China Journal of Accounting Studies Pages: 15-33 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144970 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:15-33 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144972_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Deming Yang Author-X-Name-First: Deming Author-X-Name-Last: Yang Author-Name: Can Zhao Author-X-Name-First: Can Author-X-Name-Last: Zhao Title: Excess employment, media coverage and corporate valuation: Labour Contract Law in China Abstract: Previous research has found that firms’ excess employment will reduce corporate valuation as well as lead to a series of negative economic consequences. However, these studies cannot explain why the excess employment would lead to a series of negative economic consequences. Using the exogenous event of the promulgation of the new Labour Contract Law (‘the Act’) enacted in 2007 in China, this paper finds that an increase in excess employment will reduce the valuation of firms. With the promulgation and implementation of the Labour Contract Law, the negative correlation between excess employment and corporate valuation is significantly strengthened, which shows that excess employment has a more serious negative economic impact after the law is implemented. It has been shown elsewhere that labour costs have increased since the implementation of the Act. This paper reveals that the mechanism relating excess employment to negative economic consequences is that excess employment leads to increasing labour costs rather than reducing enterprise productivity. Furthermore, we present evidence that media coverage significantly reduces the negative correlation between excess employment and the valuation of the firm, which extends the information intermediary theory of media. Journal: China Journal of Accounting Studies Pages: 34-52 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144972 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144972 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:34-52 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144969_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Danlu Bu Author-X-Name-First: Danlu Author-X-Name-Last: Bu Author-Name: Chenyu Zhang Author-X-Name-First: Chenyu Author-X-Name-Last: Zhang Author-Name: Teng Lin Author-X-Name-First: Teng Author-X-Name-Last: Lin Title: Will political promotion expectation decrease the pay gap in state-owned enterprises in China? Abstract: In this paper, we test the effects of executives’ promotion expectation on compensation and the pay gap between executives and employees in China. We measure the promotion expectation of current executives by using their predecessors’ promotion ranks and direction. We find that there is a significantly negative relationship between promotion expectation and the pay gap, suggesting that senior executives with stronger expectation of political promotion are more willing to accept less compensation and therefore a smaller pay gap. Furthermore, we find that different types of promotion expectation have different effects on senior executives’ perceptions. Compared with intra-group promotion, political promotion expectation has greater effects on limiting executive compensation and narrowing the pay gap. However, we find that promotion expectation fails to mitigate agency conflicts between shareholders and managers and further motivates the executives to maximise firm value. Journal: China Journal of Accounting Studies Pages: 53-78 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144969 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:53-78 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1176416_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liangliang Wang Author-X-Name-First: Liangliang Author-X-Name-Last: Wang Title: Capitalising or expensing research and development expenditures: a tax perspective explanation Abstract: Tax is frequently an important determinant of accounting choices. This study investigates the impact of tax incentives on certain accounting choices associated with research and development (R&D) expenditures. The empirical evidence suggests that firms facing a higher tax rate exhibit a significantly lower capitalisation ratio of R&D expenditures than firms facing a lower tax rate because of the higher tax benefits associated with expensing R&D expenditures. Further, the negative relation between tax rate and the capitalisation ratio of R&D expenditures is more pronounced for firms with lower financial reporting costs, for non-state-owned enterprises, and for firms in districts with weak tax enforcement. These findings contribute to the literature on accounting choices motivated by tax considerations and provide new explanation for the accounting choices associated with R&D expenditures. Journal: China Journal of Accounting Studies Pages: 79-103 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1176416 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1176416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:79-103 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144968_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: China’s National Uniform CPA Examination: Building a Prestigious Qualification Examination in China Journal: China Journal of Accounting Studies Pages: 104-105 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144968 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:104-105 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144973_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 106-106 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144973 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:106-106 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1144974_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2015 Journal: China Journal of Accounting Studies Pages: 107-108 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/21697213.2016.1144974 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1144974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:1:p:107-108 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1196059_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xingqiang Du Author-X-Name-First: Xingqiang Author-X-Name-Last: Du Author-Name: Wei Jian Author-X-Name-First: Wei Author-X-Name-Last: Jian Author-Name: Quan Zeng Author-X-Name-First: Quan Author-X-Name-Last: Zeng Author-Name: Yingying Chang Author-X-Name-First: Yingying Author-X-Name-Last: Chang Title: Religious influence, blockholder ownership, and corporate over-investment: evidence from Chinese Buddhism Abstract: This study extends recent literature about religious influence on corporate decisions by investigating the impact of Buddhism, the most influential religion, on corporate over-investment. Using a sample of 12,820 firm-year observations from the Chinese stock market for the period of 2001–2012, we document that Buddhism is significantly negatively associated with over-investment, suggesting that Buddhism as a set of social norms can reduce owner-manager agency conflicts, alleviate managers’ opportunistic behaviour and overconfidence, and thus mitigate over-investment. Moreover, blockholder ownership attenuates the negative association between Buddhism and over-investment. The above results are robust to a variety of sensitivity tests and are still valid after controlling for the endogeneity between Buddhism and over-investment. Journal: China Journal of Accounting Studies Pages: 109-142 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/21697213.2016.1196059 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1196059 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:2:p:109-142 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1196056_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sheng Zhang Author-X-Name-First: Sheng Author-X-Name-Last: Zhang Author-Name: Keyuan Zhang Author-X-Name-First: Keyuan Author-X-Name-Last: Zhang Author-Name: Min Zhang Author-X-Name-First: Min Author-X-Name-Last: Zhang Title: Bank ownership and dynamic capital structure adjustment of firms: evidence from China Abstract: Based on a sample of Chinese listed firms from 2006 to 2012, this paper investigates the effect of bank ownership (i.e. firms being shareholders of one or more banks) on the adjustment of a firm’s capital structure. The empirical results show that firms holding shares in a bank adjust their capital structure faster than firms not holding shares in a bank. The positive relation between bank ownership and capital structure adjustment is more pronounced when firms provide executives with greater compensation incentives and face more severe financial constraints. Additional tests show that the positive relation between bank ownership and capital structure adjustment only exists in below-target debt firms and firms that hold shares in banks controlled by Chinese shareholders. We also find that firms holding shares in a bank have a smaller disparity between target and actual capital structures, compared with those not holding shares in a bank. Our results provide direct evidence that bank ownership speeds up adjustment toward target capital structure and narrows the gap between actual and target capital structure. Journal: China Journal of Accounting Studies Pages: 143-164 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/21697213.2016.1196056 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1196056 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:2:p:143-164 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1196060_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zheng Li Author-X-Name-First: Zheng Author-X-Name-Last: Li Author-Name: Feng Guan Author-X-Name-First: Feng Author-X-Name-Last: Guan Author-Name: Suihuan Zheng Author-X-Name-First: Suihuan Author-X-Name-Last: Zheng Author-Name: Zengquan Li Author-X-Name-First: Zengquan Author-X-Name-Last: Li Title: A study of the economic consequences of China’s product recalls using food and drug recalls as examples Abstract: The economic consequences of product recalls include the short-term market reactions of investors, the reputation recovery mechanism adopted by the management of the recalling company and the long-term value relevance of the recalling company. Forty-one food and drug recalls by Chinese-listed companies between 2007 and 2012 were selected as the research sample. Using companies in the same industry as paired data, 1534 pairings were obtained. The study findings show that investors had negative reactions to food or drug recall incidents during a short event window; that the recalls had a negative externality on other companies in the same industry; that companies that performed voluntary recalls engaged in reputation recovery behaviour; and that companies that performed voluntary recalls possessed better long-term value relevance than their peers in the same industry. Journal: China Journal of Accounting Studies Pages: 165-182 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/21697213.2016.1196060 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1196060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:2:p:165-182 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1196058_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nan Jia Author-X-Name-First: Nan Author-X-Name-Last: Jia Author-Name: Dan Li Author-X-Name-First: Dan Author-X-Name-Last: Li Title: An analysis of US accounting firms’ cross-country audit quality of China concepts stocks Abstract: PCAOB once issued an article challenging US accounting firms’ practice of outsourcing the audit of US-listed Chinese companies. By analysing China concepts stocks audited by US firms from 2001 to 2012, this paper seeks to find the optimal mode for cross-country auditing. The study shows that integration and alliance outsourcing have significantly higher quality than non-alliance outsourcing, although no significant difference has been found between the former two modes. However, as the length of cooperation extends, the audit quality of non-alliance outsourcing improves significantly, which remarkably narrowed its difference with alliance outsourcing. Moreover, for the integration mode, audit quality decreases significantly as client importance increases, and consequently reduces its superiority in audit quality over outsourcing. Hence, although both integration and alliance outsourcing are favourable for cross-country auditing in China, special attention should be paid to integration where firms may compromise audit independence for large clients. Journal: China Journal of Accounting Studies Pages: 183-204 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/21697213.2016.1196058 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1196058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:2:p:183-204 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1196055_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Berry Kwock Author-X-Name-First: Berry Author-X-Name-Last: Kwock Author-Name: Raymond Ho Author-X-Name-First: Raymond Author-X-Name-Last: Ho Author-Name: Mark James Author-X-Name-First: Mark Author-X-Name-Last: James Title: The effectiveness of professional scepticism training for auditors in China: evidence from a university in China Abstract: This paper investigates the effectiveness of scepticism training for auditors on accounting major students at a Chinese university, taken as a proxy for new accounting staff. We used the award-winning KPMG training case materials designed to enhance professional judgement, and measured scepticism using six factors developed by Hurtt (2010): autonomy, self-esteem, questioning-mind, suspension-of-judgment, search-for-knowledge, and interpersonal-understanding. We instructed one group of students to complete the KPMG scepticism training case while a second group did not. Although the trained group was more sceptical in terms of autonomy, the difference between the two groups in scepticism score for the other five factors was insignificant. These results indicate that a single KPMG training course used in the US may be ineffective for training auditor scepticism in China. Arguably, that training material should include culturally sensitive materials, and the Hurtt scale is not domain specific and therefore may have resulted in measurement error. The scale measures broad stable psychological traits. The scale questions need to be modified to be more specific to the auditing task, and the training materials need to be enhanced to incorporate the cultural predispositions of Chinese students. Journal: China Journal of Accounting Studies Pages: 205-224 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/21697213.2016.1196055 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1196055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:2:p:205-224 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1196054_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Further promoting the strategy of convergence with the International Standards on Auditing Journal: China Journal of Accounting Studies Pages: 225-226 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/21697213.2016.1196054 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1196054 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:2:p:225-226 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1218634_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Naomi S. Soderstrom Author-X-Name-First: Naomi S. Author-X-Name-Last: Soderstrom Author-Name: Jeff Zeyun Chen Author-X-Name-First: Jeff Author-X-Name-Last: Zeyun Chen Title: Approaching Research Broadly, Not Just Deeply: The Case of Real Activities Manipulation Abstract: This commentary discusses how self-identification of accounting researchers by specific subfields (e.g., financial, managerial, audit, tax, systems, and non-profit/governmental) and further, by research method (e.g., archival, experimental, and analytical), limits the scope and potential insights that we can glean from our research. Using the example of research in Real Activities Management (RAM), we illustrate how extending enquiry beyond the boundaries of a narrow research identity can broaden the types of research questions we ask and what we learn from conducting our research. We start with financial accounting research that has documented the existence of RAM and its relation to accrual-based earnings management and then summarize research on the consequences of RAM. We next explore studies outside of the traditional financial accounting setting that have examined similar issues and discuss how incorporating insights from these studies can broaden the enquiry and enhance the contribution of this stream of literature. We conclude by providing an example of where this broader approach has been successfully applied, resulting in new and interesting insights into managerial behavior. Journal: China Journal of Accounting Studies Pages: 227-235 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/21697213.2016.1218634 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1218634 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:3:p:227-235 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1218632_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qingchuan Hou Author-X-Name-First: Qingchuan Author-X-Name-Last: Hou Author-Name: Qinglu Jin Author-X-Name-First: Qinglu Author-X-Name-Last: Jin Author-Name: Lanfang Wang Author-X-Name-First: Lanfang Author-X-Name-Last: Wang Author-Name: Guochang Zhang Author-X-Name-First: Guochang Author-X-Name-Last: Zhang Title: Mandatory IFRS Adoption, Accounting Quality, and Investment Efficiency: Evidence from China Abstract: This paper investigates changes in accounting quality (AQ) and corporate investment efficiency around the mandatory adoption of International Financial Reporting Standards (IFRS) in China in 2007. We find that Chinese firms experience an overall decline in both AQ (measured by accrual characteristics) and investment efficiency post-IFRS relative to pre-IFRS. There are both similarities and differences in how IFRS impacts investment behaviour between state-owned enterprises (SOEs) and non-SOEs which are confronted with distinct agency problems. Specifically, both under- and over-investment problems are aggravated among SOEs, whereas among non-SOEs only under-investment worsens, not over-investment. We also find that for both SOEs and non-SOEs, declines in investment efficiencies are concentrated on firms with more severe AQ drops. We rationalise these findings in the context of the various agency problems faced by Chinese firms, and infer that mandatory IFRS adoption has led to deteriorating reporting quality and real investment efficiency in China’s transitional economy. Journal: China Journal of Accounting Studies Pages: 236-262 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/21697213.2016.1218632 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1218632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:3:p:236-262 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1222151_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiang Cao Author-X-Name-First: Qiang Author-X-Name-Last: Cao Author-Name: Nanwei Hu Author-X-Name-First: Nanwei Author-X-Name-Last: Hu Author-Name: Lele Chen Author-X-Name-First: Lele Author-X-Name-Last: Chen Title: Auditor flow and financial statement comparability: Evidence from audit firm mergers in China Abstract: This study examines auditors’ dynamic role in the production of financial statement comparability from the perspective of auditor flow. For 47 mergers of audit firms in China from 1998 to 2012, we first divide pre-merger auditors into different auditor groups based on pre-merger audit firms, and then divide post-merger auditors into corresponding auditor groups. We find that, before mergers, the accrual comparability of two clients audited by different groups is lower than that of two clients audited by the same group. However, after the mergers, the accrual comparability of two clients audited by different groups is significantly increased. Meanwhile, we find that, after the merger, the accrual comparability of two old clients audited by different auditor groups is lower than that of two new clients. Our results suggest that auditor flow makes the auditor change audit style. This increases the financial statement comparability between flowing auditors’ clients and other clients in the new audit firm. Our results also suggest that it’s more difficult for flowing auditors to change their style in old clients than in new clients. Therefore, after audit flow, the comparability is lower between flowing auditors’ old clients and other old clients in the new audit firm. Journal: China Journal of Accounting Studies Pages: 263-286 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/21697213.2016.1222151 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1222151 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:3:p:263-286 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1222152_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Quan Author-X-Name-First: Yi Author-X-Name-Last: Quan Author-Name: Donghua Chen Author-X-Name-First: Donghua Author-X-Name-Last: Chen Title: Effort allocation and governance effect of multiple-board independent directors: evidence from reputation and geographic proximity Abstract: Using a sample of Chinese A-share listed companies from 2002 to 2013, we investigate how multiple-board independent directors allocate their effort and the consequences. The results indicate that: (1) Multiple-board independent directors do have a preference in their effort allocation. Specifically, more effort is allocated to companies which have a higher reputation and closer distance. (2) When directors are far from the firms they work for, their bias among companies with different reputation is easier to generate. (3) The multiple-board independent directors are more likely to leave firms with relatively lower reputation and farther distance due to poor accounting performance, even though their tenure has not expired. (4) Different allocation of effort results in different consequences. Specifically, the more directors who view the target firm as having a relatively higher reputation, the lower the CEO’s extra compensation, and the higher the sensitivity between compensation and performance; the more directors who view the target firm as being the relatively closer, the lower the CEO’s extra compensation. Providing evidence that multiple-board independent directors have a preference in their effort allocation, this paper not only contributes to the study of independent director characteristics and governance performance theoretically, but also has some policy implications on appointing director in practice. Journal: China Journal of Accounting Studies Pages: 287-307 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/21697213.2016.1222152 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1222152 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:3:p:287-307 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1218633_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xingqiang Du Author-X-Name-First: Xingqiang Author-X-Name-Last: Du Author-Name: Shaojuan Lai Author-X-Name-First: Shaojuan Author-X-Name-Last: Lai Author-Name: Hongmei Pei Author-X-Name-First: Hongmei Author-X-Name-Last: Pei Title: Do Women Top Managers Always Mitigate Earnings Management? Evidence from China Abstract: This study investigates the non-linear association between women top managers (WTM) and earnings management and further examines the moderating effect of monitoring intensity. Drawing on leadership style theory and using a sample of Chinese listed firms over the period of 2001–2011, our findings reveal the inverted-U relationship between WTM and earnings management, suggesting that different proportions of WTM can shape distinct leadership styles and processes of decision-making, and thus bring out asymmetric earnings qualities. Moreover, the monitoring intensity attenuates the inverted-U relationship between WTM and earnings management. These findings are robust to a variety of sensitivity tests and our conclusions are still valid after controlling for endogeneity. As additional tests, we find that the inverted-U relationship between WTM and earnings management is valid for both female directors and female managers, but only stands for the subsample with low business complexity, low information transparence, and state-owned enterprises. Journal: China Journal of Accounting Studies Pages: 308-338 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/21697213.2016.1218633 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1218633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:3:p:308-338 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1218631_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Jiang Author-X-Name-First: Wei Author-X-Name-Last: Jiang Author-Name: Wentao Yao Author-X-Name-First: Wentao Author-X-Name-Last: Yao Author-Name: Yuming Hu Author-X-Name-First: Yuming Author-X-Name-Last: Hu Title: The enforcement of the Minimum Wage Policy in China and firm cost stickiness Abstract: In the light of drawbacks in prior studies exploring the adjustment costs driver of cost stickiness, this paper dynamically examines how the 2004 Minimum Wage Policy (MWP) affects cost stickiness in Chinese firms through its immediate effect on increased hiring costs. The results show that cost stickiness weakens after the enforcement of the 2004 MWP. Further evidence shows that, in SOEs and firms with low average wages, in labour-intensive industries, and in regions with low marketisation level, the effect of the 2004 MWP on firm cost stickiness strengthens. The paper not only overcomes the drawbacks in terms of reverse causality and alternative explanations in prior studies, but also provides insight on how raising China’s minimum wage could affect firm hiring costs, employment, and thus cost management, which helps improve China’s MWP. Journal: China Journal of Accounting Studies Pages: 339-355 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/21697213.2016.1218631 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1218631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:3:p:339-355 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1251768_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu He Author-X-Name-First: Yu Author-X-Name-Last: He Author-Name: Qingliang Tang Author-X-Name-First: Qingliang Author-X-Name-Last: Tang Author-Name: Kaitian Wang Author-X-Name-First: Kaitian Author-X-Name-Last: Wang Title: Carbon performance versus financial performance Abstract: Extant literature has failed to document consistent evidence that socially responsible activities are positively related to financial performance. Such an inconclusive result raises the question of identifying the incentive for firms to voluntarily commit resources for carbon mitigation. Our study attempts to address this issue by investigating the relation between carbon performance and financial performance. We employ a sample of US S&P 500 corporations and use emissions reduction to measure carbon performance and Tobin’s Q to measure financial performance. In order to mitigate the concern of endogeneity, we also consider the influence of carbon disclosure on the relation by conducting simultaneous equations analysis. The results show a positive relation between carbon performance and financial performance. In addition, we find firms with better financial performance tend to be more transparent in carbon disclosure. These findings contrast with previous studies that typically report mixed results. A higher degree of correspondence between carbon performance and financial performance indicates managers who have financial and social obligations and who have chosen carbon projects that have not only improved firm green image but have also generated tangible economic benefit. Journal: China Journal of Accounting Studies Pages: 357-378 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2016.1251768 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1251768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:357-378 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1251770_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Weifeng He Author-X-Name-First: Weifeng Author-X-Name-Last: He Author-Name: Wei Liu Author-X-Name-First: Wei Author-X-Name-Last: Liu Title: Why do companies appoint independent directors having professional legal expertise? Abstract: Understanding the role of the independent director is an important branch of corporate governance study, and the analysis of the independent director system from the perspective of a professional background constitutes an important part of recent theoretical research. This paper attempts to uncover the underlying motivations for Chinese listed companies to engage independent directors having professional legal expertise and to analyse the associated economic consequences. We find that Chinese listed companies engage independent directors mainly for consulting rather than for supervisory purposes; if a company is bound up in such activities as a lawsuit, dividend distribution, equity transfer or asset acquisition, it would be more likely to hire independent directors of legal expertise; and when a company is considering hiring independent directors, it would prefer those independent directors reputed to have professional legal expertise and extensive practical experience. We further find that the listed companies which hire independent directors having professional legal expertise generally have a higher market value. This paper not only contributes to the literature of the professional background of independent directors but also extends the literature of law and finance. In addition, it provides new inspiration on how to improve listed companies’ governance efficiency. Journal: China Journal of Accounting Studies Pages: 379-405 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2016.1251770 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1251770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:379-405 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1252078_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chuancai Zhang Author-X-Name-First: Chuancai Author-X-Name-Last: Zhang Author-Name: Hanwen Chen Author-X-Name-First: Hanwen Author-X-Name-Last: Chen Title: Product market competition, state ownership and internal control quality Abstract: Based on a sample of Chinese A-share listed firms on the Shenzhen Stock Exchange and the Shanghai Stock Exchange between 2007 and 2012, we examine the effect of product market competition on the internal control quality of Chinese listed firms and the difference in this effect between state owned firms and non-state owned firms. Using the internal control index constructed by Chen et al. (2013) as the proxy for internal control quality, we find that product market competition has a significant effect on the internal control quality of Chinese listed firms: the more intense the product market competition is, the higher the internal control quality will be. However, the effect is only significant for non-state owned firms, not for state owned firms. In addition, we find that high quality internal control can improve product market competition advantage, providing support for our main findings. Overall, our study extends the literature on internal control and product market competition, provides evidence on whether internal control can help firms realise their development strategies, and offers advice to related government departments and firms on improving internal control quality. Journal: China Journal of Accounting Studies Pages: 406-432 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2016.1252078 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1252078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:406-432 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1252088_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wanfu Li Author-X-Name-First: Wanfu Author-X-Name-Last: Li Author-Name: Jing Du Author-X-Name-First: Jing Author-X-Name-Last: Du Title: Tax incentives, adjustment costs, and R&D investment in China Abstract: Tax incentives for firms’ research and development (R&D) activities have been widely used to solve the “market failure” problem and to increase firms’ R&D investment. However, there is no consensus on whether the incentive effects of R&D tax policies are effective. This study empirically analyses the moderating effect of the adjustment costs of R&D on the incentive effects of R&D tax policies in China. The results show that tax incentives policies stimulate firms’ R&D investment. However, the incentive effect of tax incentives weakens as adjustment costs increase. When the adjustment cost is greater than a critical value (0.012), the tax incentive effect of R&D disappears. About 93% of Chinese firms have adjustment costs lower than this critical value, which suggests that China’s R&D tax incentives policy is generally effective. This study also finds that the incentive effect of tax policy on R&D investment is more significant for non-state-owned firms than for state-owned firms. Journal: China Journal of Accounting Studies Pages: 433-455 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2016.1252088 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1252088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:433-455 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1252089_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Du Author-X-Name-First: Wei Author-X-Name-Last: Du Author-Name: Xin Chen Author-X-Name-First: Xin Author-X-Name-Last: Chen Author-Name: Tianxi Zhang Author-X-Name-First: Tianxi Author-X-Name-Last: Zhang Title: Long-run performance of SEOs regulated by profitability thresholds: evidence from Chinese public offerings Abstract: The Chinese government strictly regulated seasoned equity offerings (SEOs) by setting profitability thresholds and other administrative requirements. We examine the long-run performance of Chinese listed firms making public offerings from 1998 to 2010. Inconsistent with commonly observed patterns of underperformance in mature markets, we do not find any material evidence of post-SEO underperformance compared with matching benchmarks. In addition, we show that the post-SEO abnormal return has a strong positive association with the prior roe of SEO firms, implying that roe-thresholds based on return on equity can be sound tools to identify SEO firms of high quality. Journal: China Journal of Accounting Studies Pages: 456-474 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2016.1252089 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1252089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:456-474 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1265195_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feiteng Ye Author-X-Name-First: Feiteng Author-X-Name-Last: Ye Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Author-Name: Chen Yang Author-X-Name-First: Chen Author-X-Name-Last: Yang Title: Does financial reporting comparability improve after accounting firm mergers? Evidence from Chinese listed companies Abstract: Using a sample of Chinese A-share firms listed on the Shanghai and Shenzhen stock exchanges from 1998 to 2012, we investigate the impact of accounting firm mergers on financial reporting comparability. We find that financial reporting comparability is significantly increased after mergers. Furthermore, post-merger integration has a positive effect on this relationship; that is, the association between auditor firm merger and financial reporting comparability is stronger when the auditor firm merger has a higher degree of integration. This paper provides empirical evidence supporting the “bigger and more competitive” policy promoted by the Chinese government in the auditing industry. Journal: China Journal of Accounting Studies Pages: 475-493 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2016.1265195 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1265195 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:475-493 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1302689_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Corrigendum Journal: China Journal of Accounting Studies Pages: (i)-(i) Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2017.1302689 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1302689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:(i)-(i) Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1294837_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Corrigendum Journal: China Journal of Accounting Studies Pages: (ii)-(ii) Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/21697213.2017.1294837 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1294837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:4:y:2016:i:4:p:(ii)-(ii) Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1304539_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Min Chen Author-X-Name-First: Min Author-X-Name-Last: Chen Author-Name: Xiaohui Qu Author-X-Name-First: Xiaohui Author-X-Name-Last: Qu Author-Name: Xuejiao Sun Author-X-Name-First: Xuejiao Author-X-Name-Last: Sun Title: Whose cost of equity capital reduces after IFRS convergence and why? Heterogeneity evidence from Chinese stock market Abstract: This paper extends the studies of IFRS convergence in China by analysing heterogeneity with respect to the reduction in the cost of equity capital, and investigating the potential causes of that heterogeneity using the sample of listed A-share companies of 2004–2010. This paper finds that state-owned companies have experienced a greater cost reduction than non-state-owned companies. The further analyses find that institutional settings and management incentives are critical driving factors for state-owned companies benefiting more from IFRS convergence. These findings not only enrich the literature by providing direct evidence to reveal and explain the heterogeneity in the reduction in the cost of equity capital caused by IFRS convergence in China, but also contribute to the appraisal of the convergence. To implement IFRS-converged accounting standards in transitional economies such as China, it is important to strengthen the development of external marketisation and the governance of incentives for earnings management. Journal: China Journal of Accounting Studies Pages: 1-27 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1304539 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1304539 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:1-27 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1292717_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chenyu Cui Author-X-Name-First: Chenyu Author-X-Name-Last: Cui Author-Name: Yunsen Chen Author-X-Name-First: Yunsen Author-X-Name-Last: Chen Author-Name: Dengjin Zheng Author-X-Name-First: Dengjin Author-X-Name-Last: Zheng Title: Private placement and abnormal corporate payouts: evidence from large stock dividends Abstract: Dividends should be used as the way firms reward their investors, but in the Chinese stock market, large stock dividends have been criticised for several years. In this paper, through a case study and large-sample empirical tests, we find that large stock dividends are used to cater to investors participating in a firm’s private placement. Further empirical tests document that during the unlocking periods of privately issued new shares, firms are more likely to pay large stock dividends, especially when outside private placement investors are able to sell their shares. Additional tests reveal that private placement investors do make stock sales after receiving large stock dividends. Furthermore, firms undertaking large stock dividends after private placement have more frequent connected-party transactions, are more tunnelled by other receivables and have more aggressive earnings management and lower investment efficiencies, implying that the governance role of private placement is largely attenuated because of large stock dividends. Large stock dividends after private placement are also shown to be opportunistic behaviour and irrelevant to future performance in our study. Overall, the large stock dividends result in wealth transferring between insiders and ordinary investors, and further reduce the efficiency of resource allocation in the Chinese capital market. From the results we insist that regulators should encourage cash dividends and keep a close eye on potential abuse through large stock dividends. Journal: China Journal of Accounting Studies Pages: 28-49 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1292717 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1292717 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:28-49 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1292722_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hong Zhou Author-X-Name-First: Hong Author-X-Name-Last: Zhou Author-Name: Chang Zhou Author-X-Name-First: Chang Author-X-Name-Last: Zhou Author-Name: Wanfa Lin Author-X-Name-First: Wanfa Author-X-Name-Last: Lin Author-Name: Guoping Li Author-X-Name-First: Guoping Author-X-Name-Last: Li Title: Corporate governance and credit spreads on corporate bonds: an empirical study in the context of China Abstract: This article empirically examines the relationship between corporate governance and credit spreads on corporate bonds in the context of China. We find that good corporate governance leads to lower credit spreads on corporate bonds through both improving corporate financial performance and mitigating informational asymmetry between managers and investors. Meanwhile, such an effect is stronger in private-owned enterprises than in state-owned enterprises as the mitigating effect of corporate governance on informational asymmetry is greater in private-owned enterprises than in state-owned enterprises. The findings of this study may be helpful in understanding how corporate bonds are valued in China’s corporate bond market and thus help China’s firms reduce credit spreads and cost of debt. Journal: China Journal of Accounting Studies Pages: 50-72 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1292722 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1292722 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:50-72 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1292727_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gang Zhao Author-X-Name-First: Gang Author-X-Name-Last: Zhao Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Weixing Wang Author-X-Name-First: Weixing Author-X-Name-Last: Wang Title: IPO excessive financing, managerial power, and private benefits: evidence from the IPO market in China Abstract: Excessive financing by means of an initial public offering (IPO) is an important issue in the resource allocation efficiency of the capital market that has deeply concerned the public and regulatory authorities. Within the Chinese context and applying the theory of managerial power, we discuss the influence of IPO excessive financing on the private benefits of top managers. Using data on companies listed in 2006–2011, we find that: (1) the top managers of listed companies with excessive financing obtain greater monetary and non-monetary private benefits; (2) this phenomenon is significant for both state-owned and non–state-owned firms; (3) in non–state-owned enterprises, the greater the managerial power, the greater the monetary and non-monetary private benefits top managers receive, whereas this relation does not exist in state-owned enterprises; and (4) the market responds negatively to companies with excessive financing that provide greater monetary private benefits to top managers, but there is no significant response to companies that provide greater non-monetary private benefits to top managers. This paper expands the research on the economic consequences of excessive financing via an IPO and managerial power and provides regulatory implications of such excessive financing. Journal: China Journal of Accounting Studies Pages: 73-99 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1292727 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1292727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:73-99 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1292730_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Danlu Bu Author-X-Name-First: Danlu Author-X-Name-Last: Bu Author-Name: Chenyu Zhang Author-X-Name-First: Chenyu Author-X-Name-Last: Zhang Author-Name: Xiaoyan Wang Author-X-Name-First: Xiaoyan Author-X-Name-Last: Wang Title: Purposes of government subsidy and firm performance Abstract: This study examines the effect of a government subsidy’s purpose on firm performance. Using a sample of Chinese listed firms from 2007 to 2012, we find that a government subsidy affects firm performance. Specifically, a government subsidy is negatively associated with firm performance, and such a negative effect is primarily driven by a non-specified type of subsidy. Further, such an effect is more pronounced for state-owned enterprises (SOEs) compared with non-SOEs. The government quality has a positive effect on the likelihood of a specified subsidy and the performance impact of a non-specified subsidy. Further analyses suggest that a non-specified subsidy reduces investment efficiency and results in rent-seeking activities. This study sheds light on the effect of government subsidies from a new perspective, and has important policy implications for regulators to improve the effectiveness of government subsidies. Journal: China Journal of Accounting Studies Pages: 100-122 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1292730 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1292730 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:100-122 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1252087_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fu Xin Author-X-Name-First: Fu Author-X-Name-Last: Xin Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Jiemin Dai Author-X-Name-First: Jiemin Author-X-Name-Last: Dai Author-Name: Xiaorong Du Author-X-Name-First: Xiaorong Author-X-Name-Last: Du Title: Do firms’ exports affect analysts’ forecast errors? Abstract: This paper aims to provide insights into the forces and constraints that shape the forecast errors of local analysts when a firm enjoys both domestic and foreign earnings. By applying a unique hand-collect export dataset of Chinese listed firms, the key finding shows that the forecast earnings of exporting firms issued by local analysts deviate more from the actual earnings than those for non-exporting firms. On the contrary, foreign analysts exhibit an informational advantage to local analysts when forecasting the earnings of exporting firms. A two-stage selection model and propensity score matching procedure are applied for correcting the endogeneity problem in a corporate exporting decision. A detailed investigation shows that the forecast errors of local analysts increased significantly during the financial crisis of 2008. Also, the forecast errors of foreign analysts were smaller after the IFRS were been adopted in China than before. Our findings indicate that the accuracy of local analysts may suffer from the macro-economic environment in an export-driven nation. Journal: China Journal of Accounting Studies Pages: 123-150 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2016.1252087 File-URL: http://hdl.handle.net/10.1080/21697213.2016.1252087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:123-150 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1292735_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 151-151 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1292735 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1292735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:151-151 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1292737_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2016 Journal: China Journal of Accounting Studies Pages: 152-153 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/21697213.2017.1292737 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1292737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:1:p:152-153 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1339432_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shinong Wu Author-X-Name-First: Shinong Author-X-Name-Last: Wu Author-Name: Yaping Wang Author-X-Name-First: Yaping Author-X-Name-Last: Wang Author-Name: Liansheng Wu Author-X-Name-First: Liansheng Author-X-Name-Last: Wu Author-Name: Xianhui Bo Author-X-Name-First: Xianhui Author-X-Name-Last: Bo Title: State ownership and the market pricing of accruals quality Abstract: This paper examines the effect of state ownership on the market pricing of accruals quality. We find that the market pricing effect of accruals quality is larger for non-state-owned enterprises than for state-owned enterprises in China. The results still hold when we divide accruals quality into innate and discretionary accruals quality. Further analyses reveal a higher level of expropriation and a greater fundamental risk in non-state-owned enterprises, leading to a larger market pricing effect of accruals quality. This paper is the first to study the governance role of state ownership from the perspective of market pricing of accruals quality. It also adds to the literature on the market pricing of accruals quality by studying its link with state ownership. Journal: China Journal of Accounting Studies Pages: 155-172 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/21697213.2017.1339432 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1339432 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:2:p:155-172 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1339430_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Dong Chen Author-X-Name-First: Dong Author-X-Name-Last: Chen Author-Name: Bin Fu Author-X-Name-First: Bin Author-X-Name-Last: Fu Author-Name: Kun Fang Author-X-Name-First: Kun Author-X-Name-Last: Fang Title: Independent directors’ board networks and accounting conservatism Abstract: This paper studies the influence of network centrality of independent directors on accounting conservatism. Using A-share list companies from 2007–2012 as the sample, we find that: (1) the higher the network centrality of independent directors, the lower the accounting conservatism; (2) considering the different environment in which the companies operate, network centrality of independent directors only has a significant influence on accounting conservatism in regions with a poor financial development environment and a poor legal environment; (3) considering the different environment within the companies, the network centrality of independent directors only has a significant influence on accounting conservatism in companies without bank connections. The findings of this paper enrich the studies of determinants of accounting conservatism from the perspective of association with characteristics of independent directors, and show the substitution effect of an institutional environment and other networks to the function of network centrality of independent directors. Journal: China Journal of Accounting Studies Pages: 173-195 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/21697213.2017.1339430 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1339430 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:2:p:173-195 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1339431_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Riguang Wen Author-X-Name-First: Riguang Author-X-Name-Last: Wen Title: Who asks for higher merger and acquisition premiums? The perspective of national collectivism Abstract: This study explores the impact of a collectivist culture on the premiums of cross-border merger and acquisition (M&A). Using a sample of cross-border M&A transactions conducted by Chinese firms, this study empirically investigates the role of a tendency toward collectivism in the target firm’s country in M&A pricing. The results show that collectivism in the target firm’s country, measured as an institutional collectivist tendency and an in-group collectivist tendency, negatively correlates with M&A premiums, in both statistically and economically significant ways. A one-point increase in institutional collectivism and in in-group collectivism can reduce the M&A premium by around 30 and 20 percentage points, respectively, ceteris paribus. I draw from the empirical results the conclusion that national collectivism has a great impact on M&A premiums. This conclusion is significantly revealing about the cross-border M&A decisions of enterprises in emerging markets. Journal: China Journal of Accounting Studies Pages: 196-210 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/21697213.2017.1339431 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1339431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:2:p:196-210 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1339429_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mingxia Hu Author-X-Name-First: Mingxia Author-X-Name-Last: Hu Author-Name: Shengdao Gan Author-X-Name-First: Shengdao Author-X-Name-Last: Gan Title: Life cycle stage effects, CEO power and internal control quality: evidence from listed family firms in China Abstract: We study the evolution of internal control quality within listed family firms in China, over different stages of the life cycle. We find a downward trend in internal control quality, and a significant difference between growth and non-growth stages. Further, we investigate the relationship between CEO power and internal control quality. In the growth stage, the higher the CEO’s structure power and expert power, the higher the internal control quality. In addition, the higher the CEO’s ownership power, the lower the internal control quality. But in the non-growth stage, a CEO’s expert power and ownership power is significantly negatively associated with the internal control quality. Additionally, the different types of CEO source in the family firm result in heterogeneity of CEO power. The findings show that the actual controller as CEO prefers weaker internal control quality and has a positive moderating effect on the association of expert power and the internal control quality. Where the CEO is related as a family member of the actual controller, then the closer is the kinship network and the lower is the internal control quality. Moreover, a closer kinship network increases the negative impact of ownership power on internal control quality. Journal: China Journal of Accounting Studies Pages: 211-233 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/21697213.2017.1339429 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1339429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:2:p:211-233 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1341750_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Danlu Bu Author-X-Name-First: Danlu Author-X-Name-Last: Bu Author-Name: Changwen Tu Author-X-Name-First: Changwen Author-X-Name-Last: Tu Author-Name: Xiangyan Shi Author-X-Name-First: Xiangyan Author-X-Name-Last: Shi Title: Government competition, equity investment and subsidy Abstract: Considering China’s unique institutional background of financial decentralisation and political centralisation, by studying data on 3,021 listed enterprises from 2007 to 2014, this paper mainly investigates the influences of listed enterprises’ equity investment on obtaining subsidies from local governments. Our research finds that listed enterprises can obtain local government subsidies more easily by making an equity investment in the local government region. Meanwhile, the frequency and amount of the equity investment or the occasion for a first equity investment in the area can significantly increase enterprises’ subsidies from the local government. Moreover, the positive influence of equity investment on obtaining government subsidies is more pronounced in areas faced with high GDP pressure. The research further finds that government subsidies obtained through equity investment have a significantly negative association with corporate performance, which means that the equity investments of enterprises that are made for the purpose of obtaining subsidies are speculative in nature. This paper studies the relationship between investment behaviour of enterprises and government subsidies from the perspective of government competition and rent-seeking, reporting the evidence and ways of tunnelling between enterprises and government. We aim at providing new standards of evaluation for the investment behaviour of listed enterprises and offering a theoretical basis to local governments to control the economy rationally. Journal: China Journal of Accounting Studies Pages: 234-255 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/21697213.2017.1341750 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1341750 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:2:p:234-255 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1341751_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kaitang Zhou Author-X-Name-First: Kaitang Author-X-Name-Last: Zhou Author-Name: Shushu Jiang Author-X-Name-First: Shushu Author-X-Name-Last: Jiang Author-Name: Zhiming Ma Author-X-Name-First: Zhiming Author-X-Name-Last: Ma Title: Political uncertainty and voluntary management earnings forecasts Abstract: This paper examines the effect of political uncertainty on voluntary management earnings forecasts. Using Chinese A-share listed companies from 2006 to 2013, we find that managers are more likely to issue earnings forecasts and increase earnings forecasts precision after the turnover of Provincial Party Secretary. The effect is more pronounced for Non-State Owned Enterprises, when the new official comes from other provinces, or for firms with more analyst coverage. Further analysis shows that the market reaction to earnings forecasts is stronger when political uncertainty is high. Our study sheds light on the real effects of political uncertainty and contributes to the understanding of voluntary management earnings forecast behaviours. Journal: China Journal of Accounting Studies Pages: 256-273 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/21697213.2017.1341751 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1341751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:2:p:256-273 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1375647_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rui Ge Author-X-Name-First: Rui Author-X-Name-Last: Ge Author-Name: Janus Jian Zhang Author-X-Name-First: Janus Jian Author-X-Name-Last: Zhang Title: Regulatory investigations of audit partners and audit quality improvement Abstract: Prior studies of the effect of regulatory monitoring on audit quality focus on regulatory sanctions but ignore regulatory investigations. We hand-collected data on the China Securities Regulatory Commission (CSRC) investigations announced during 2001–2015 to examine the impact of CSRC investigations on the audit quality of the targeted partners. We find that after the audit partners are investigated by the CSRC, their clients exhibit a lower absolute value of discretionary accruals and the partners are more likely to issue modified audit opinions. Our results suggest that CSRC investigations lead to improvement in the audit quality of the partners involved in the investigations. In contrast, CSRC sanctions have a relatively weak effect on the audit quality of the involved partners. Overall, our study provides evidence that CSRC monitoring helps to improve the audit quality of audit partners, and the effect manifests around CSRC investigations. Journal: China Journal of Accounting Studies Pages: 275-293 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/21697213.2017.1375647 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1375647 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:3:p:275-293 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1375629_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qi Zhang Author-X-Name-First: Qi Author-X-Name-Last: Zhang Author-Name: Yao Zheng Author-X-Name-First: Yao Author-X-Name-Last: Zheng Title: Can media coverage improve the information disclosure quality of government final accounts? Abstract: Public disclosure of the government’s budget is a prerequisite for the improvement of fiscal transparency and governance in government. This paper examines media attention following the disclosure of budget information by central government departments, and empirically analyses the impact of media coverage on the information disclosure quality of government final accounts. It is found that: (1) media coverage effectively improves the information disclosure quality of government final accounts through an information intermediary function (in relation to neutral reports) and a reputation management function (in relation to positive and negative reports); (2) the information intermediary function of media is vulnerable to the replacement of department officials, i.e. replacement of an official will weaken the positive relationship between neutral reports and the information disclosure quality of departmental final accounts; (3) the reputation management function of media is vulnerable to the performance of departmental final accounts, i.e. poor performance in final accounts will weaken the positive relationship between emotional reports (negative reports or positive reports) and the information disclosure of departmental final accounts. This paper contributes to the literature of media governance in the public domain from the perspective of information disclosure quality, and also reveals the potential constraints on the information intermediary function and the reputation management function of media. Journal: China Journal of Accounting Studies Pages: 294-325 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/21697213.2017.1375629 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1375629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:3:p:294-325 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1385158_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Li Huan Author-X-Name-First: Li Author-X-Name-Last: Huan Author-Name: Zheng Gaoping Author-X-Name-First: Zheng Author-X-Name-Last: Gaoping Author-Name: Li Dan Author-X-Name-First: Li Author-X-Name-Last: Dan Title: Do big customers influence listed firms’ performance? Based on supplier–customer relationships in China Abstract: Using hand-collected data of the top five customers disclosed by Chinese listed firms in their annual reports, this paper examines the impact of supplier–customer relationships on firms’ operating performance using the framework of DuPont analysis. The empirical results show a significantly negative correlation between customer concentration and firm performance based on return on assets. The negative impact on performance results from the decrease of the gross profit margin and accounts receivable turnover. Meanwhile, suppliers have to pay more entertainment expenses to retain their main customers and bear more financial expenses because of defaults in payment of customers. These results rely on the closeness of supplier–customer relationships and their relative bargaining power. Customer concentration increases the turnover of accounting receivables and inventories in those industries with overcapacity. The overall results provide evidence of the impact of big customers on the supplier’s performance. Journal: China Journal of Accounting Studies Pages: 326-343 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/21697213.2017.1385158 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1385158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:3:p:326-343 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1375638_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Junli Yu Author-X-Name-First: Junli Author-X-Name-Last: Yu Author-Name: Xin Jin Author-X-Name-First: Xin Author-X-Name-Last: Jin Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Title: Does the geographical proximity between the chairman and the CEO affect internal control quality? Abstract: This article redefines the concept of proximity governance and explains the determinants of internal control quality from the perspective of an informal institutional arrangement. Based on an internal network (chairman–chief executive officer geographical proximity), we examine the effects of proximity governance on internal control quality using the data of Chinese A-share listed companies from 2007 to 2013. We conclude that the geographical proximity has a negative impact on internal control quality and this effect is weaker in state-owned enterprises than in private enterprises. Further empirical evidence shows that the negative effect of the geographical proximity on internal control quality can be moderated if the company has an interlocking business network. This study enriches the research literature on internal governance in emerging markets and provides reference for management selection strategies and standards of internal control. Journal: China Journal of Accounting Studies Pages: 344-360 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/21697213.2017.1375638 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1375638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:3:p:344-360 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1383056_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Quan Author-X-Name-First: Yi Author-X-Name-Last: Quan Author-Name: Sihai Li Author-X-Name-First: Sihai Author-X-Name-Last: Li Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Title: Chasing political resources by listed companies: a perspective on hiring non-local independent directors from Beijing Abstract: Using a sample of Chinese A-share listed companies from 2002 to 2013, we investigate the motivation and consequences of listed companies hiring non-local independent directors from Beijing. The results indicate that: (1) listed companies that are headquartered far away from Beijing, or located in poor institutional environments, are more inclined to hire non-local independent directors from Beijing for the sake of political resources; (2) listed companies not headquartered in Beijing hire a significantly higher ratio of independent directors with full-time jobs in Beijing that are retired government officials than do listed companies located in Beijing; (3) appointing independent directors from Beijing helps enterprises to refinance equity, enter high-barrier industries, and reduce the risk of illegal penalties. Our analysis also reveals that non-local independent directors from Beijing receive higher remuneration. This study clarifies the internal decision mechanisms surrounding independent director appointments and the role they play. Our results reflect the failure of the independent director system as an enforceable institution under a transitional economy and provide important implications to improve our corporate governance mechanisms. Journal: China Journal of Accounting Studies Pages: 361-378 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/21697213.2017.1383056 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1383056 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:3:p:361-378 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1383060_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chunyan Wei Author-X-Name-First: Chunyan Author-X-Name-Last: Wei Title: Determinants of equity incentive plans in Chinese companies listed on the growth enterprise market Abstract: Using Chinese companies listed on the Growth Enterprise Market (hereafter GEM) from the period 2009 to 2014, I investigate the determinants of equity incentive plans. The findings are different from prior researches that are based on companies listed on the main board. Specifically, equity incentive plans in GEM companies are influenced by human resource demand, rather than managerial power. Further investigation regarding the detail of equity incentive plans, such as granting requirements, vesting conditions, and validity period, also supports hypotheses derived from human resource theory. Collectively, this paper highlights the attracting and retaining human resource role of equity-based compensation in GEM companies. The findings have implications for regulators in encouraging and supervising the practice of equity incentive in listed companies. Journal: China Journal of Accounting Studies Pages: 379-394 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/21697213.2017.1383060 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1383060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:3:p:379-394 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1423774_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shenglan Chen Author-X-Name-First: Shenglan Author-X-Name-Last: Chen Author-Name: Hui Ma Author-X-Name-First: Hui Author-X-Name-Last: Ma Title: Anti-corruption reform and audit pricing Abstract: This paper examines how Chinese anti-corruption reform affects audit pricing. We show that auditors react to the increased audit risk resulting from anti-corruption reform and charge higher audit fees to the politically connected firms. We find that the treatment effect is stronger for firms with poor financial statement quality, with higher operating uncertainty, located in provinces experiencing larger effect of anti-corruption reform, and audited by audit firms with greater bargaining powers. Finally, the results suggest that earnings management and the probability of issuing an unqualified opinion of politically connected firms are reduced after the anti-corruption reform. Our findings provide further insight into the effect of anti-corruption reform on auditors in audit pricing decisions. Journal: China Journal of Accounting Studies Pages: 395-419 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/21697213.2017.1423774 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1423774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:4:p:395-419 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1423776_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xingqiang Du Author-X-Name-First: Xingqiang Author-X-Name-Last: Du Title: Hospitality and auditor independence: do gifts blind the eyes? Abstract: In the Chinese audit market, some firms provide hospitality to their auditors. There is a well-known saying in China: ‘Gifts blind the eyes and there is no such thing as a free lunch’. The phenomenon provides researchers with a unique setting to examine whether hospitality (proxied by free food and drink) can impair actual auditor independence. Using a sample of Chinese listed firms during the period of 2001–2010, my findings show that hospitality is significantly positively associated with discretionary accruals, and further hospitality is significantly negatively associated with auditors’ propensity to issue modified audit opinions. These findings, taken together, imply that some Chinese listed firms compromise auditor independence and establish bonding relations with their auditors via hospitality. This study validates the impairment of hospitality on actual auditor independence, lending important support to the existing ethical standards about hospitality in the auditing profession. Journal: China Journal of Accounting Studies Pages: 420-448 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/21697213.2017.1423776 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1423776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:4:p:420-448 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1423777_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Haoping Xu Author-X-Name-First: Haoping Author-X-Name-Last: Xu Author-Name: Xin Zhang Author-X-Name-First: Xin Author-X-Name-Last: Zhang Author-Name: Lu Liu Author-X-Name-First: Lu Author-X-Name-Last: Liu Author-Name: Jianqiao Hong Author-X-Name-First: Jianqiao Author-X-Name-Last: Hong Title: Value effect of rival innovation failure: competition or contagion? Abstract: This paper investigates how the value of firms is affected by rival R&D projects. In particular, we utilise a unique event (i.e. the failure of the R&D project in Hepatic vaccine in Chongqing Brewery) to investigate the market response to the announcement of failure in R&D investment in a rival firm. The competition (contagion) hypothesis predicts a positive (negative) market reaction. Our results show a strong negative market reaction, indicating that the contagion effect dominates the scene. We also show that the negative effects are more pronounced in firms with core business in the vaccine industry, reinforcing our main evidence supporting the contagion effect. Moreover, our evidence suggests that such an effect is more pronounced in firms with a higher degree of uncertainty. Our study has important contributions to the literature as well as policy implications. Journal: China Journal of Accounting Studies Pages: 449-467 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/21697213.2017.1423777 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1423777 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:4:p:449-467 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1429531_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liu Siyi Author-X-Name-First: Liu Author-X-Name-Last: Siyi Author-Name: Weng Ruoyu Author-X-Name-First: Weng Author-X-Name-Last: Ruoyu Author-Name: Yang Daoguang Author-X-Name-First: Yang Author-X-Name-Last: Daoguang Title: Natural disaster, fiscal pressure and tax avoidance: a typhoon-based study Abstract: Natural disasters affect not only local economic development and government fiscal behaviour at the macro level, but also corporate tax avoidance behaviour at the micro level. From the perspective of typhoons, we investigate the effect of natural disasters on corporate tax avoidance behaviour based on the sample of China’s A-share companies from 2008 to 2015. Results indicate that the greater the damage caused by typhoons, the lower the level of tax avoidance of local companies, and this relationship is more significant in state-owned companies, political affiliates, and local leading companies, which is joined with path testing to show that natural disaster affects tax avoidance through fiscal pressure. In addition, we investigate whether this relationship varies cross-sectionally from several perspectives: institutional and economic environment, fiscal pressure, market pressure, and tax avoidance margin. Furthermore, we find that companies paying more taxes post-disaster will obtain more government grants and credit resources in the future, achieving mutual benefits between local governments and companies. In summary, this paper tests the effect of disasters on corporate tax avoidance behaviour based on China’s unique government-company relationship. Journal: China Journal of Accounting Studies Pages: 468-509 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/21697213.2017.1429531 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1429531 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:4:p:468-509 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1438244_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Minkang Lu Author-X-Name-First: Minkang Author-X-Name-Last: Lu Author-Name: Mingdong Ran Author-X-Name-First: Mingdong Author-X-Name-Last: Ran Title: Fiscal expenditure, equity type, and firms’ operational performance Abstract: In China, expansive fiscal expenditure creates significant fiscal orders. However, whether, which, and how firms benefit from these fiscal orders is neglected in the literature. We configure a theoretical framework to separately analyse the effects of fiscal expenditure on product and capital markets. In the empirical analysis, we use A-share firms listed in China between 2003 and 2013 as our sample to investigate the relationship between fiscal expenditure and firms’ performance. We find that the performance of state-owned enterprises (SOEs) increases with increasing fiscal expenditure by improving asset utilisation and profitability. Corporate governance metrics such as management incentives and independent boarders can adjust this relationship. Our findings indicate that although fiscal orders are mainly acquired and executed by SOEs, the efficiency of expansive fiscal expenditure would be improved if more non-SOEs were preferentially targeted instead. Journal: China Journal of Accounting Studies Pages: 510-526 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/21697213.2017.1438244 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1438244 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:4:p:510-526 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1438288_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiongyuan Wang Author-X-Name-First: Xiongyuan Author-X-Name-Last: Wang Author-Name: Yanqiong Li Author-X-Name-First: Yanqiong Author-X-Name-Last: Li Author-Name: Min Xiao Author-X-Name-First: Min Author-X-Name-Last: Xiao Title: Do risk disclosures in annual reports improve analyst forecast accuracy? Abstract: Risk information disclosed in annual reports may have positive impacts on analyst earnings forecast by improving information quality, or may have negative impacts by increasing the risk perception of analysts. In this paper, we quantify risk information disclosures in annual reports using textual analysis, and examine the impact on analyst forecast accuracy. The results at firm-level show that (1) collectively analyst forecast accuracy increases with more risk disclosures; (2) this effect is more significant in the group of non-SOEs, higher auditing quality, higher earnings quality, or better corporate governance, suggesting that good internal and external governance mechanisms provide a guarantee for the information function of risk disclosures and for analyst forecast accuracy; (3) the conclusion are robust to firm inherent risks, and they are favourable for increasing forecast accuracy when disclosing risks higher than the inherent risks. The results at analyst individual-level show that (1) individually, analyst forecast accuracy increases with more risk disclosures; (2) this effect is more significant in the group of non-star, less industrial expertise and less follow experience. It suggests that the weak heterogeneity of risk disclosures in annual reports is favourable to increase analyst forecast accuracy in China. The conclusions support the information argument, and contribute to the emerging risk disclosure literature and the literature on analyst forecasts. Journal: China Journal of Accounting Studies Pages: 527-546 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/21697213.2017.1438288 File-URL: http://hdl.handle.net/10.1080/21697213.2017.1438288 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:5:y:2017:i:4:p:527-546 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1480005_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qingquan Xin Author-X-Name-First: Qingquan Author-X-Name-Last: Xin Author-Name: Jing Zhou Author-X-Name-First: Jing Author-X-Name-Last: Zhou Author-Name: Fang Hu Author-X-Name-First: Fang Author-X-Name-Last: Hu Title: The economic consequences of financial fraud: evidence from the product market in China Abstract: This article measures the spillover effect of the reputation loss induced by financial fraud on the product market. Using 294 regulatory penalties cases between 2004 and 2012, we find that, compared with the control firms, firms engaging in financial fraud exhibit a decline in sales revenue by 11.9–17.1% and a decrease in their gross profit margin on sales by 2.4–2.8% in the three years after punishment. Furthermore, we find that the sales revenue from the top five large customers falls 43.9–55.1% in the post-punishment period, while sales revenue from small customers does not decline significantly. Overall, our analyses suggest that the damaged reputation as a result of financial fraud has a major impact on the product market. Our findings help understand the trust mechanism in the Chinese product market. Journal: China Journal of Accounting Studies Pages: 1-23 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1480005 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1480005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1480168_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ziye Zhao Author-X-Name-First: Ziye Author-X-Name-Last: Zhao Author-Name: Qiujun Wu Author-X-Name-First: Qiujun Author-X-Name-Last: Wu Author-Name: Jianbo Chen Author-X-Name-First: Jianbo Author-X-Name-Last: Chen Title: Is the world flat? Economic consequences of geographic information in financial reports Abstract: This study examines whether investors are concerned about textual geographic information in annual reports. Based on a sample of China’s listed firms, we report the following findings: First, the more low marketisation districts (LMDs) appear in the annual reports, the higher the market return will be. Second, the result is more pronounced in non-state companies. Third, the frequency of LMDs is positively related with Tobin Q and CEO’s compensation. Fourth, we are unable to detect any relation between the frequency of high marketisation districts (HMDs) and firm characteristics including short term market reaction, Tobin Q and CEO’s compensation. Lastly, frequencies of both LMDs and HMDs are positively related with corporate innovation measured by patents. Taken together, the results show that a company can succeed in a developing area by filling the void of infrastructure. The strategy of expanding business in developing areas does not impair long term innovative activities. Journal: China Journal of Accounting Studies Pages: 24-44 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1480168 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1480168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:24-44 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1481629_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Baoyin Qiu Author-X-Name-First: Baoyin Author-X-Name-Last: Qiu Author-Name: Bo Cheng Author-X-Name-First: Bo Author-X-Name-Last: Cheng Title: Social trust and the multi-layered enterprise equity structure Abstract: Social trust, as an informal mechanism, has an important influence on economic activities. With the Chinese A-share listed companies from 2007 to 2013 as samples, this paper make an examination of the influence of stoical trust on a multi-layered enterprise equity structure and its functioning mechanism. This study shows that the higher the social trust in a region where the enterprise is located, the fewer the layers of enterprise equity structure. Further examination of the functioning mechanism shows that on the one hand, there may be a more obvious phenomenon in a region with a relatively weak legal environment where the layers of enterprise equity structure decrease with the increase of social trust in the region. On the other hand, social trust influences a multi-layered enterprise equity structure by two paths, namely, debt financing cost and credit financing. Journal: China Journal of Accounting Studies Pages: 45-62 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1481629 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1481629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:45-62 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1483589_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Bai Author-X-Name-First: Jun Author-X-Name-Last: Bai Author-Name: Qingxi Meng Author-X-Name-First: Qingxi Author-X-Name-Last: Meng Author-Name: Yanyan Shen Author-X-Name-First: Yanyan Author-X-Name-Last: Shen Title: Does Foreign Bank Entry Affect Domestic Enterprise Innovation? Abstract: How does financial opening-up impact the real economy? The answer is important to China, the largest economy in transition experiencing a critical period of further reform of the financial system. We capture the influence of financial reform through foreign bank entry in this paper. Starting with a description of the process of foreign bank entry in China, we sum up two paths through which foreign bank entry affects China’s domestic enterprise innovation: the direct effect and the spillover effect. Then, using the data of public listed companies in China from 2001 to 2014, we investigate the effects of foreign bank entry on domestic enterprise innovation by exploiting the staggered multiple exogenous shocks and using a difference-in-difference approach. The results show that foreign bank entry contributes significantly to domestic enterprise innovation, and they are robust when considering the potential concerns of omitted variables and reverse causality. Further study illustrates that the nurturing role derives not only from the direct effect (although it is very limited), but also from the spillover effect of foreign bank entry by enhancing competition among domestic banks. The findings suggest that it is necessary to mitigate the barriers to foreign banks and expand the banking sector in China. Journal: China Journal of Accounting Studies Pages: 63-83 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1483589 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1483589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:63-83 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1494109_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xinyuan Chen Author-X-Name-First: Xinyuan Author-X-Name-Last: Chen Author-Name: Xu Lin Author-X-Name-First: Xu Author-X-Name-Last: Lin Author-Name: Wenhong Ding Author-X-Name-First: Wenhong Author-X-Name-Last: Ding Author-Name: Kai Zhu Author-X-Name-First: Kai Author-X-Name-Last: Zhu Title: State ownership, performance evaluation and tax avoidance Abstract: In 2004, the central and local State-owned Assets Supervision and Administration Commission (SASAC) announced how to evaluate the performance of management of state-owned enterprises (SOEs) that are under its control. This article examines how the different performance evaluation systems in different provinces influence the tax avoidance behaviour of SOEs. We find that only four of them – Shanghai, Guangdong, Zhejiang and Fujian – adopt after-tax profit as the evaluation index, while all the other provinces use before-tax profit. We believe that SOEs which use after-tax profit as an evaluation index have higher incentives to reduce the tax burden than those which use before-tax profit as an evaluation index. Following previous literature, two measurements of tax avoidance are used in this paper: effective tax rate and book-tax difference. Based on 8426 observations from 2007 to 2015, we have two main conclusions: (1) compared with SOEs that are evaluated using before-tax profit as the evaluation index, SOEs that are evaluated using after-tax profit have lower effective tax rate (ETR) and higher book-tax difference (BTD); (2) compared with SOEs that are evaluated using before-tax profit as the evaluation index, SOEs that are evaluated using after-tax profit have a higher level of substitution between debt financing and tax avoidance. Journal: China Journal of Accounting Studies Pages: 84-105 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1494109 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1494109 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:84-105 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1494098_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 106-106 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1494098 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1494098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:106-106 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1494099_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2017 Journal: China Journal of Accounting Studies Pages: 107-108 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/21697213.2018.1494099 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1494099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:1:p:107-108 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1513676_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xie Deren Author-X-Name-First: Xie Author-X-Name-Last: Deren Author-Name: Liao Ke Author-X-Name-First: Liao Author-X-Name-Last: Ke Title: Share pledging by controlling shareholders and real earnings management of listed firms* Abstract: Based on a sample of Chinese listed firms during the 2003–2016 period, this article examines whether share pledging by controlling shareholders influences real earnings management in firms. We show that firms where controlling shareholders pledge shares (‘pledging firms’ hereafter) are more likely to be involved in upwards earnings management through real activities. The positive association is more pronounced in non-SOE firms and in firms with a weaker balance of control rights. Our results suggest that, faced with the risk of possible foreclosure, which may result in losing control, controlling shareholders who have pledged stock will push the firm to manage earnings through real activities. Journal: China Journal of Accounting Studies Pages: 109-119 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/21697213.2018.1513676 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1513676 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:2:p:109-119 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1521921_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Huiting Lin Author-X-Name-First: Huiting Author-X-Name-Last: Lin Author-Name: Yurun He Author-X-Name-First: Yurun Author-X-Name-Last: He Author-Name: Maolin Wang Author-X-Name-First: Maolin Author-X-Name-Last: Wang Title: How does the Speed of Pro-market Reform Influence Corporate Innovation: Evidence from China Abstract: This paper analyses how dynamic characteristics of pro-market reform influence corporate innovation. The empirical results show that there is an inverted U-shaped relationship between the speed of pro-market reform and corporate research and development investment. At present, the speed of reform in most central and western provinces of China has yet to be improved, while in some eastern provinces it is marginally too high. We further find that the inverted U-shaped relationship is more significant in non-state-owned enterprises. In addition, the inverted U-shaped relationship is more pronounced for the high-tech industry, especially in non-state-owned enterprises. Our paper is beneficial for the enforcement of pro-market reform. Neither too low nor too high a speed of pro-market reform is good for corporate innovation. At the same time, the nature of ownership and industrial differences should not be ignored. Journal: China Journal of Accounting Studies Pages: 120-134 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/21697213.2018.1521921 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1521921 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:2:p:120-134 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1521955_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Author-Name: Youfu Yao Author-X-Name-First: Youfu Author-X-Name-Last: Yao Author-Name: Xuefang Wang Author-X-Name-First: Xuefang Author-X-Name-Last: Wang Title: Concentration of the supply chain and audit opinion shopping: the case of China Abstract: The supervision and governance of opinion shopping have been an important issue for academics and regulators all over the world. Taking Chinese A-share listed firms from 2010 to 2016 as our samples and borrowing the method in Lennox (2000), we investigate the impact of concentration of the supply chain on audit opinion shopping. The empirical results show that concentration of the supply chain can increase the probability of audit opinion shopping. From the perspective of demand for audit services, supply-chain-driven opinion shopping is more pronounced when the client firm has lower bargaining power; and from the perspective of supply of audit services, supply-chain-driven opinion shopping is more pronounced in headquarters-to-branch auditor switch than in branch-to-headquarters auditor switch. Furthermore, having a common auditor of client firms in a supply chain can significantly decrease supply-chain-driven opinion shopping. This paper provides evidence of audit opinion shopping from the perspective of the supply chain. Journal: China Journal of Accounting Studies Pages: 135-158 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/21697213.2018.1521955 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1521955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:2:p:135-158 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1522030_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Junsheng Zhang Author-X-Name-First: Junsheng Author-X-Name-Last: Zhang Author-Name: Mengyu Zhang Author-X-Name-First: Mengyu Author-X-Name-Last: Zhang Title: When predecessor and successor accounting firms disclose inconsistent reasons for auditor changes Abstract: Since 2011, China has required that both the predecessor and successor auditors of public companies disclose their reasons for auditor changes. However, we observe that for some companies there are significant discrepancies between the reasons reported by their predecessor auditors and those reported by their successor auditors. This phenomenon has attracted attention from regulators such as the Chinese Institute of Certified Public Accountants (CICPA). Therefore, we conduct an exploratory analysis of this phenomenon. First, the results show that investors consider 35% of the reasons disclosed by the predecessor and successor auditors to be inconsistent; second, if neither the predecessor nor the successor is a Big 4 audit firm, the reasons disclosed by the two firms are more likely to be inconsistent; third, as for the inconsistency between the reasons, investors respond negatively in that they are more prone to sell the stocks; and fourth and finally, the inconsistent reasons disclosed are likely to be followed by poorer financial reporting quality in the next year. Journal: China Journal of Accounting Studies Pages: 159-177 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/21697213.2018.1522030 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1522030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:2:p:159-177 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1522038_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bo Zhou Author-X-Name-First: Bo Author-X-Name-Last: Zhou Author-Name: Cheng Zhang Author-X-Name-First: Cheng Author-X-Name-Last: Zhang Author-Name: Qingsheng Zeng Author-X-Name-First: Qingsheng Author-X-Name-Last: Zeng Title: Does the rhetoric always hide bad intention: annual report’s tone and stock crash risk Abstract: In this paper, by examining the relationship between tone and stock crash risk, we investigate whether tone embedded in annual reports transmits information to the market or it is just a way of impressing management. We consider the optimism of tone as the construct of public information received by investors, and the truthfulness of tone as the construct of private information held by the management, respectively. We find that, overall, the optimism of tone in the annual report has no significant impact on stock crash risk in the year following the release of the annual report. However, after taking the truthfulness of tone into account, we find that when the tone is not true, the stock crash risk in the following year will increase if tone becomes more optimistic, indicating that an overly positive tone is likely to be the result of management hiding some bad news or releasing false good news for their self-interest. On the other hand, when the tone in annual reports is true, the positive correlation between tone and crash risk will be significantly suppressed, indicating that positive language expresses managers’ real thoughts, without bad intention. Journal: China Journal of Accounting Studies Pages: 178-205 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/21697213.2018.1522038 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1522038 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:2:p:178-205 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1530184_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zongyan Li Author-X-Name-First: Zongyan Author-X-Name-Last: Li Author-Name: Yu Qin Author-X-Name-First: Yu Author-X-Name-Last: Qin Title: Context cultures, translation strategies and learning efficiency of accounting standards: experimental evidence based on ASBE and IFRS texts Abstract: Although the Chinese Accounting Standards for Business Enterprise (ASBE) has substantially converged with the International Financial Reporting Standards (IFRS) in content, it adopts a localized style in terms of structure and language characteristics. As such, it differs markedly from the IFRS in linguistics. Using context culture theory, we compare the ASBE’s high-context feature to the IFRS’s low-context feature. Using functional equivalence theory, we identify the ‘foreignizing’ feature of the Chinese IFRS and the ‘domesticating’ feature of the ASBE texts, from a translation perspective. We empirically study the learning efficiency of ASBE and Chinese IFRS, and find that the ASBE high-context culture is not conducive to solving accounting problems and a domesticating translation is helpful to improving the learning efficiency of accounting standards especially in complex task models. We further explore text completeness and readability as intermediary factors in how context culture and translation strategy influence learning efficiency. Journal: China Journal of Accounting Studies Pages: 206-229 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/21697213.2018.1530184 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1530184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:2:p:206-229 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1543251_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yugang Yin Author-X-Name-First: Yugang Author-X-Name-Last: Yin Author-Name: Zheng Niu Author-X-Name-First: Zheng Author-X-Name-Last: Niu Author-Name: Yahui Liu Author-X-Name-First: Yahui Author-X-Name-Last: Liu Author-Name: Shuang Mou Author-X-Name-First: Shuang Author-X-Name-Last: Mou Title: Firm site visits and differential information of text in analyst reports Abstract: We quantify differential information of text in analyst reports by adopting the methodology of cosine similarity and investigate the role of analysts’ firm site visits in the differential information of their reports. We find that the analysts who conduct a visit to a firm site provide more differential information than those who do not, and this process of collecting information by a visit is affected by analyst–firm factors. Specifically, an analyst’s visit and visit frequency of a firm three months before his/her reports are issued are positively associated with the differential information of text in the reports. This effect is more pronounced among reports of worse firm information transparency, more analysts’ local advantage, and stronger analyst–firm relationships. This finding is robust with different measurements of text information, local advantage and analyst–firm relationships. Moreover, we find that the differential information of text in analyst reports through visits to firm sites is more likely to be private information rather than inside information. Journal: China Journal of Accounting Studies Pages: 231-274 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/21697213.2018.1543251 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1543251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:3:p:231-274 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1560131_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Quan Author-X-Name-First: Yi Author-X-Name-Last: Quan Author-Name: Lina Yan Author-X-Name-First: Lina Author-X-Name-Last: Yan Author-Name: Lei Liu Author-X-Name-First: Lei Author-X-Name-Last: Liu Title: Registration address change and corporate cost stickiness: from the perspective of policy preference and policy burden Abstract: A change of corporate registration address will directly affect the development of listed firms, and also the districts in and out of which the firms move, thereby ultimately leading to the reallocation of capital resources. Therefore, corporate registration address change attracts great attention from the theoretical and practical circles. From the perspective of policy preference and policy burden, using the sample of Chinese A-share listed firms that have experienced trans-provincial change in their registration address from 2000 to 2016, this study investigates the impact of registration address change on corporate cost stickiness and the mechanism through which registration address change affects corporate cost stickiness. The results indicate that: (1) with many factors controlled, registration address change greatly enhances corporate cost stickiness; (2) in the discussion of the mechanism, it is found that the increased policy preference and the aggravated policy burden are two ways via which registration address change affects cost stickiness. Therefore, for listed firms that experience both policy preference and policy burden simultaneously because of their registration address change, their cost stickiness increases the most. The study not only enriches the current literature on the economic consequences of registration address change, links corporate registration with cost management, and enlarges the scope of corporate cost management; it also has practical significance for corporate registration management and political resource allocation in China as well. Journal: China Journal of Accounting Studies Pages: 275-294 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/21697213.2018.1560131 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1560131 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:3:p:275-294 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1567108_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Zhou Author-X-Name-First: Jun Author-X-Name-Last: Zhou Author-Name: Lingling Hao Author-X-Name-First: Lingling Author-X-Name-Last: Hao Author-Name: Ming Yang Author-X-Name-First: Ming Author-X-Name-Last: Yang Title: Earnings quality and travel convenience in China for non-local independent directors with accounting expertise Abstract: In the vast territory of China, travel convenience may be an important external influence on independent directors in their governance role. In this paper, the relationship between travel convenience and earnings quality is examined from the perspective of a non-local independent director with accounting expertise. We define travel convenience as existing where the high-speed railway takes less than one hour to travel from the location of the company’s office to the independent director’s home location. The study finds that travel convenience is positively associated with earnings quality of a company whose independent directors with accounting expertise are non-local. Earnings quality of companies whose independent directors with accounting expertise are local is higher than that of companies whose independent directors with accounting expertise are non-local and for whom travel is inconvenient. There is no significant difference in earnings quality between companies whose independent directors with accounting expertise are local and those whose independent directors with accounting expertise are non-local but for whom travel is convenient. Further study shows that this conclusion is still valid if we define travel convenience as existing when the geographical distance between the company and the non-local independent directors’ home location is less than 200 km or 100 km. This indicates that travel convenience enhances the governance effect of non-local independent directors and improves the company’s earnings quality. Journal: China Journal of Accounting Studies Pages: 295-320 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/21697213.2018.1567108 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1567108 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:3:p:295-320 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1567113_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lu Weichao Author-X-Name-First: Lu Author-X-Name-Last: Weichao Author-Name: Yang Daoguang Author-X-Name-First: Yang Author-X-Name-Last: Daoguang Author-Name: Liu Siyi Author-X-Name-First: Liu Author-X-Name-Last: Siyi Title: Accounting information comparability, demand differences and cross-firm information transfer Abstract: Studies of the economic consequences of accounting information comparability mainly focus on the level of the individual firm. There is little direct empirical evidence that investors use comparability for cross-firm investment. This paper empirically examines the impact of accounting information comparability on cross-firm information transfer from the perspective of investor information demand. We find that increases in comparability can facilitate the transfer of earnings information across firms, regardless of whether the investor uses the information to expect unknown or verify existing information. However, when the reliability of accounting information changes, the role of comparability is different. We also find that property rights and the information environment affect comparability’s influence. Finally, the use of comparable information by investors will reduce the market response to the firm’s earnings information. In summary, comparability plays an important role in investors’ acquisition and use of external information to assess a firm’s value. Our study provides a more comprehensive understanding of the economic consequences of accounting information comparability and has important implications for corporate information disclosure and government regulation. Journal: China Journal of Accounting Studies Pages: 321-361 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/21697213.2018.1567113 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1567113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:3:p:321-361 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1567119_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiang Cao Author-X-Name-First: Qiang Author-X-Name-Last: Cao Author-Name: Nanwei Hu Author-X-Name-First: Nanwei Author-X-Name-Last: Hu Title: Auditor subgroup status and audit quality Abstract: Auditors typically separate into different auditor subgroups within the offices of audit firms. The interaction between informal subgroups significantly affects the audit process and audit quality. In this paper, we examine the effect of auditor subgroup status on audit quality in the context of Chinese culture, and study the moderating effect of positive direct contact on the relationship between group status and audit quality. Based on 50 mergers of Chinese audit firms between 1990 and 2016, we identify 106 auditor subgroups in 53 offices located in China. With this data, we find that the clients’ earnings management of low-status auditor subgroups is significantly higher after mergers compared with that of high-status auditor subgroups. In addition, when there is positive direct contact between auditor subgroups within an office, the deterioration extent of clients’ earnings management of low-status auditor subgroups declines compared with that of high-status auditor subgroups. The results of our analyses indicate that: (1) low-status auditor subgroups have a higher motivation to maintain or improve their position within the office and to safeguard their interests, they are more likely to behave opportunistically, and their audit quality will be worse; and (2) positive direct contact can effectively improve intergroup relationships and mitigate the adverse effects of auditor subgroup status on audit quality. Our research on subgroup status and intergroup contact extends the existing research boundaries of audit quality, and also provides more direct and reliable empirical evidence for the interaction between subgroups within the same office. Journal: China Journal of Accounting Studies Pages: 362-393 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/21697213.2018.1567119 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1567119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:3:p:362-393 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1567123_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xuanyu Jiang Author-X-Name-First: Xuanyu Author-X-Name-Last: Jiang Author-Name: Che Zhang Author-X-Name-First: Che Author-X-Name-Last: Zhang Author-Name: Jing Jia Author-X-Name-First: Jing Author-X-Name-Last: Jia Author-Name: Shangyao Yu Author-X-Name-First: Shangyao Author-X-Name-Last: Yu Title: Individual investors’ dividend taxes and corporate innovation: evidence from China Abstract: In the context of China’s implementation of an innovation-driven development strategy and improvement of tax systems reform, we use the 2012 dividend tax reform, a unique quasi-experiment associating individual investors’ dividend tax with the length of the shareholding period, to examine empirically the impact of individual investors’ dividend taxes on corporate innovation. We find that firms facing a reduction in their individual investors’ dividend tax rates are more likely to reduce their innovation inputs and outputs. Our further findings are that: (1) reducing the internal cash flows triggered by increasing a cash dividend payout to cater to investors’ tax preferences is an important channel through which investors’ dividend taxes hinder corporate innovation; (2) if firms do not adjust the dividend payout policy when faced with the exogenous variation in individual investors’ dividend tax rates, they will suffer a fall in short-term market value. Overall, our study contributes to the literature on determinants of corporate innovation, and economic consequences of individual investors’ dividend taxes. Journal: China Journal of Accounting Studies Pages: 394-420 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/21697213.2018.1567123 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1567123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:3:p:394-420 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1612191_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Author-Name: Chunfei Wang Author-X-Name-First: Chunfei Author-X-Name-Last: Wang Author-Name: Bo Li Author-X-Name-First: Bo Author-X-Name-Last: Li Title: Competition in China’s public accounting service market: evidence from newly-established branch offices Abstract: China’s public accounting service profession has experienced rapid development in the past decade, and the major means of expansion are mainly characterized by merging with local audit firms as newly established branch offices across the country. Based on the office-level data in China from 2013 to 2016, this study examines the competing strategies of these newly-established branch offices and their potential impact on the local audit market. We find that newly established branch offices are able to successfully obtain listed clients in the year of establishment via significant low-price competition and reducing audit quality. Furthermore, when competition in the inter-provincial audit market intensifies, it is more likely for existing firms to offer audit fee discounts to their incumbent clients. Our evidence indicates that the epitaxial extension brings about destructive competition, and existing audit firms use price reduction strategies as a defense, thus disrupting normal market competition. Journal: China Journal of Accounting Studies Pages: 421-447 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/21697213.2019.1612191 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1612191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:4:p:421-447 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1612187_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Li Qingyuan Author-X-Name-First: Li Author-X-Name-Last: Qingyuan Author-Name: Wang Lumeng Author-X-Name-First: Wang Author-X-Name-Last: Lumeng Title: Financial statement comparability and corporate tax avoidance Abstract: Based on the analysis of the agency problem in tax avoidance, this paper uses the data of non-financial listed companies from 2005 to 2015 to study the impact of the comparability of accounting information on corporate tax avoidance. The results show that the higher the comparability of accounting information, the lower the degree of corporate tax avoidance. The deterrence effect of comparability on tax avoidance is more significant for a company with a more opaque information environment and with fiercer product market competition. Additional tests show that the deterrence effect of comparability on tax avoidance is more pronounced in regions with low tax enforcement, which shows that financial statement comparability can substitute tax enforcement. This article proves the governance effect of financial accounting comparability on corporate tax avoidance. It expands and deepens the research of the governance effect of accounting information comparability from the perspective of tax avoidance. Journal: China Journal of Accounting Studies Pages: 448-473 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/21697213.2019.1612187 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1612187 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:4:p:448-473 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1586381_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongqi Yuan Author-X-Name-First: Hongqi Author-X-Name-Last: Yuan Author-Name: Desong Kong Author-X-Name-First: Desong Author-X-Name-Last: Kong Author-Name: Chujun Zhang Author-X-Name-First: Chujun Author-X-Name-Last: Zhang Author-Name: Chao Chen Author-X-Name-First: Chao Author-X-Name-Last: Chen Title: A comparative study of earnings quality of firms listed in the NEEQ market and the Growth Enterprise Market Abstract: This paper explores the differences in earnings quality between the National Equities Exchange and Quotations (NEEQ) companies and the Growth Enterprise Market (GEM) companies. The study finds that NEEQ companies and GEM companies have different characteristics in earnings quality. NEEQ companies have a significantly higher level of upward earnings management than GEM companies, while GEM companies have stronger incentives to manage earnings downward through a ‘big bath’ than NEEQ companies, owing to the special treatment and delisting regulations for GEM firms. We also find that the unique institutions of NEEQ have significant impacts on the earnings quality of companies. Innovation-layer companies, companies applying for IPOs, companies with independent directors, companies trading with market makers, companies with private equity (PE) or venture capital (VC) investment have higher earnings quality. Journal: China Journal of Accounting Studies Pages: 474-497 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/21697213.2018.1586381 File-URL: http://hdl.handle.net/10.1080/21697213.2018.1586381 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:4:p:474-497 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1612192_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guochao Yang Author-X-Name-First: Guochao Author-X-Name-Last: Yang Title: The cost of institutional innovation in the absence of an external governance mechanism — A case study on the ‘Alibaba Partnership’ Abstract: This paper studies the cost-benefit trade-off of Alibaba Partnership, an innovative dual-class ownership structure, under a change in the external governance environment. The study finds that the Alibaba Partnership gives its management more voting rights than cash-flow rights. When Alibaba Partnership was established, Alipay’s equity was transferred, which caused the share price of Yahoo and Softbank both fell sharply. In addition, Yahoo’s equity of Alibaba was repurchased by Alibaba at an extremely low price. When Alibaba Partnership was first disclosed, the share price of Yahoo and Softbank continued to fall sharply. After entering into the US capital market, Alibaba experienced a sharp fall in share price immediately following the ‘White Paper Incident’. All of the results show that, the innovative Alibaba Partnership, in the absence of an external governance mechanism, could incur potential costs of separation of ownership and control. Journal: China Journal of Accounting Studies Pages: 498-526 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/21697213.2019.1612192 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1612192 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:4:p:498-526 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1612190_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yang Yi Author-X-Name-First: Yang Author-X-Name-Last: Yi Author-Name: Hanyi Tian Author-X-Name-First: Hanyi Author-X-Name-Last: Tian Author-Name: Shunlin Song Author-X-Name-First: Shunlin Author-X-Name-Last: Song Author-Name: Jinsong Tan Author-X-Name-First: Jinsong Author-X-Name-Last: Tan Title: Economic consequences of administrative penalties on violations by IPO sponsor representatives Abstract: It is a crucial issue in the theory and practice of securities regulation, to improve regulation of securities institutions and avoid securities fraud. Using IPO sponsor supervision data by the China Securities Regulatory Commission (CSRC) for the period 2004 to 2015, we analyse the economic consequences of administrative penalty on the sponsor representative level. We find that violating sponsor representatives undertake fewer IPO projects, receive IPO projects of a smaller size and receive lower issuing fees after a penalty from the CSRC, compared with other sponsor representatives. Meanwhile, we also find that violating sponsor representatives significantly improve the quality of IPO projects undertaken after a penalty, which is reflected in lower earnings management and higher profitability of these IPO projects. Our results indicate that an administrative penalty can not only effectively punish the violations, which affects sponsor representatives’ income as a result, but also significantly improves the competence of violating sponsor representatives. Our research has confirmed the effectiveness of an administrative penalty and is helpful in further improving financial regulatory enforcement and related systems. Journal: China Journal of Accounting Studies Pages: 527-554 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/21697213.2019.1612190 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1612190 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:4:p:527-554 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1629201_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yanheng Song Author-X-Name-First: Yanheng Author-X-Name-Last: Song Author-Name: Yunling Song Author-X-Name-First: Yunling Author-X-Name-Last: Song Title: Are auditor’s professional judgments influenced by air quality? Abstract: This paper tests the influence of air quality on auditor’s professional judgments using air quality data disclosed by Ministry of Ecology and Environment of the People’s Republic of China in 2013–2015. We find that air pollution exposure of the client’s headquarter during fieldwork days has a negative impact on the auditor’s professional judgments. Further analysis shows that the influence of air quality on auditor’s professional judgments pertains to periods when air pollution problem attracts public attention, in regions with air pollution and in samples with air quality differences between the audit firm and the auditee. The results indicate that it is the negative emotion induced by the perception of air pollution rather than the pollution itself that influences auditor’s professional judgments. We also discover that air pollution affects auditor’s professional judgments through audit effort. Journal: China Journal of Accounting Studies Pages: 555-582 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/21697213.2019.1629201 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1629201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:6:y:2018:i:4:p:555-582 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1635322_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yulan Wang Author-X-Name-First: Yulan Author-X-Name-Last: Wang Author-Name: Xiaochen Dou Author-X-Name-First: Xiaochen Author-X-Name-Last: Dou Author-Name: Jinglin Li Author-X-Name-First: Jinglin Author-X-Name-Last: Li Title: Are group control associated with excess leverage? Empirical evidence Abstract: This study investigates the effect of group control on the excess leverage of Chinese listed firms during 2003–2016. We find that the extent and probability of excess leverage in group-affiliated firms are significantly higher than stand-alone firms. After considering the firm ownership, we find that the excess leverage is more pronounced among private group-affiliations than the state-owned ones. Moreover, the empirical evidence indicates that better corporate governance and efficient institutional environment can effectively decrease the degree of excess leverage in group-affiliated firms. This paper provides a new perspective for understanding the over-leverage problem of Chinese firms and offers practical implications for the implementation of de-leverage policy. Journal: China Journal of Accounting Studies Pages: 1-24 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1635322 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1635322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1625577_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xixiong Xu Author-X-Name-First: Xixiong Author-X-Name-Last: Xu Author-Name: Wanli Li Author-X-Name-First: Wanli Author-X-Name-Last: Li Author-Name: Xichan Chen Author-X-Name-First: Xichan Author-X-Name-Last: Chen Title: Confucian culture and stock price crash risk Abstract: Using a sample of Chinese-listed firms during the period from 2008–2017, this paper investigates the impact of Confucian culture on stock price crash risk and its underlying mechanism. We find that Confucianism is significantly negatively associated with firm-specific crash risk. Further channel tests show that Confucian culture curbs crash risk mainly through mitigating agency conflict, improving financial information quality and restraining managerial overconfidence. Moreover, we also document that the negative association between Confucianism and crash risk is more prominent in firms with weaker corporate governance and lower analyst coverage. Our findings suggest that Confucian ethics, as an implicit norm and alternative mechanism of formal institutions plays a critical role in preventing stock price crash and promoting the healthy development of capital market. This study not only enriches the literature on stock price crash risk but also deepens theoretical cognition of the positive value of Confucian culture from firm-level. Journal: China Journal of Accounting Studies Pages: 25-61 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1625577 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1625577 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:25-61 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1625578_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yutao Chen Author-X-Name-First: Yutao Author-X-Name-Last: Chen Author-Name: Jian Feng Author-X-Name-First: Jian Author-X-Name-Last: Feng Title: Do corporate green investments improve environmental performance? Evidence from the perspective of efficiency Abstract: By linking green investments to corporate environmental performance from the perspective of efficiency, this paper quantifies and evaluates firm-level green investment efficiency, with SBM-DEA approach and hand-collected emission data of Chinese listed companies in polluting industries. We find that corporate green investment efficiency is overall low, primarily due to excessive green investments, suggesting that managers only invest extensively in environmental dimensions without considering the efficient allocation and value-creating use of limited resources. Further, we conduct the Tobit regression and demonstrate that local environmental enforcement has an inverted U-shaped effect on green investment efficiency of polluting firms. Notably, this effect is only statistically significant in Non-SOEs and small-scale enterprises. Moreover, we document a U-shaped relationship between local environmental enforcement and excessive green investments, and this relationship is also only pronounced in Non-SOEs and small-scale firms. Our findings indicate that local governments should optimize corporate green investment efficiency through differentiated environmental regulation. Journal: China Journal of Accounting Studies Pages: 62-92 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1625578 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1625578 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:62-92 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1630179_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lu Li Author-X-Name-First: Lu Author-X-Name-Last: Li Author-Name: Tusheng Xiao Author-X-Name-First: Tusheng Author-X-Name-Last: Xiao Author-Name: Yuqian He Author-X-Name-First: Yuqian Author-X-Name-Last: He Author-Name: Xueding Wang Author-X-Name-First: Xueding Author-X-Name-Last: Wang Title: Management language experience, cultural integration and the performance of mergers and acquisitions Abstract: Institutional economists believe that language, as an important informal institution, has a significant impact on economic activities. However, the study of language on corporate behavior is still relatively insufficient. Our paper examines the influence of linguistic distance between the acquirer and the target firm on M&A performance in China, from 2000 to 2012. The results indicate that the linguistic distance between the acquirer and the target firm significantly reduces the performance of M&As. Furthermore, we suggest that the influence of language differences on the performance of M&As is mainly driven by the cultural effect rather than the communication effect. In addition, we find that the relationship between language differences and M&A performance is affected not only by manager characteristics, types of mergers and corporate ownership structures, but also by regional development. This paper provides a new way to examine management’s participation in M&A activities from the perspective of language. Journal: China Journal of Accounting Studies Pages: 93-118 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1630179 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1630179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:93-118 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1643068_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xue Li Author-X-Name-First: Xue Author-X-Name-Last: Li Author-Name: Jin-hui Luo Author-X-Name-First: Jin-hui Author-X-Name-Last: Luo Author-Name: Zeyue Huang Author-X-Name-First: Zeyue Author-X-Name-Last: Huang Title: ‘Original sin’ suspicion, institutional environment, and corporate philanthropy in private enterprises Abstract: The suspicion of ‘original sin’ is an unavoidable problem in the development of China’s private enterprises. Using a sample of A-share private listed firms from 2004–2016, we investigate whether and how the suspicion of ‘original sin’ of private enterprises affects their corporate philanthropy. We find that private enterprises with the suspicion of ‘original sin’ have stronger incentives to take corporate philanthropy as a strategic tool to reduce the threat arising from the ‘original sin’. High development levels of institutional environment can attenuate the positive effect of ‘original sin’ suspicion on private enterprises’ corporate philanthropy. Furthermore, we find that the positive association between the ‘original sin’ suspicion of private enterprises and their corporate philanthropy is more pronounced when they do not have political connections and/or after their ultimate controllers are showed up on the Hurun Rich List. Journal: China Journal of Accounting Studies Pages: 119-143 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1643068 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1643068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:119-143 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1647628_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 144-144 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1647628 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1647628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:144-144 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1643077_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2018 Journal: China Journal of Accounting Studies Pages: 145-146 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/21697213.2019.1643077 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1643077 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:145-146 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1642604_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Aimin Qian Author-X-Name-First: Aimin Author-X-Name-Last: Qian Author-Name: Dapeng Zhu Author-X-Name-First: Dapeng Author-X-Name-Last: Zhu Title: Financial report similarity and the likelihood of administrative punishment:based on the empirical evidence of textual analysis Abstract: This paper uses A-share non-financial listed companies in the Chinese Stock Exchange from 2008 to 2016 as a sample and investigates the influence of financial reports similarity on the likelihood of administrative punishment. The empirical result shows that the greater similarity to the last MD&A, the higher probability of administrative punishments for fraud firms; and the greater similarity to the last Non-MD&A, the lower probability of administrative punishments for fraud firms. Namely, regulatory agencies pay more attention to the information content of MD&A and the stability and compliance of Non-MD&A respectively. Further analysis shows that state property rights can mitigate the positive relationship between MD&A similarity and the likelihood of being punished, and better textual readability can aggravate the negative relationship between Non-MD&A similarity and the likelihood of being punished. Finally, after considering the review and preview part of MD&A, the corporate governance and accounting policy part of Non-MD&A respectively, the conclusions still stand. This paper provides empirical evidence for governments to promote policies about regulatory enforcement and information disclosure. Journal: China Journal of Accounting Studies Pages: 147-169 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/21697213.2019.1642604 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1642604 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:2:p:147-169 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1676037_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Author-Name: Yujiang Fan Author-X-Name-First: Yujiang Author-X-Name-Last: Fan Author-Name: Yulong Yang Author-X-Name-First: Yulong Author-X-Name-Last: Yang Title: Do critical audit matters signal higher quality of audited financial information? Evidence from asset impairment Abstract: Chinese auditing standards mandate the disclosure of critical audit matters (CAMs) in audit reports for all listed companies since 2017. Risk-oriented auditing requires auditors to assess material misstatement risks and provide reasonable assurance on financial statements that should reflect the firm’s underlying economics, regardless whether a CAM is disclosed. However, given a material misstatement risk, if some auditors effectively identify it as a CAM while others do not, the financial information with a CAM would exhibit higher quality than that without a CAM, leading to a positive association between CAM disclosure and the audited information quality. Using asset impairment-related CAMs, we show the relation between asset impairment and worsened economics is notably stronger for companies with an impairment-related CAM than those without any. Further, this association is more pronounced in smaller audit firms. Our findings reveal inadequate implementation of risk-oriented auditing, particularly in audit firms with greater resource constraints. Journal: China Journal of Accounting Studies Pages: 170-183 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/21697213.2019.1676037 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1676037 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:2:p:170-183 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1661169_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jian Chu Author-X-Name-First: Jian Author-X-Name-Last: Chu Author-Name: Junxiong Fang Author-X-Name-First: Junxiong Author-X-Name-Last: Fang Author-Name: Jeong-Bon Kim Author-X-Name-First: Jeong-Bon Author-X-Name-Last: Kim Author-Name: Yi Zhou Author-X-Name-First: Yi Author-X-Name-Last: Zhou Title: Stock price crash risk and auditor-client contracting Abstract: Using a large sample of Chinese-listed firms for the period of 2001–2014, we find that the auditors of clients with higher crash risk tend to charge higher fees, are more likely to issue modified audit opinions, and have a higher turnover tendency, which is consistent with the notion that a client’s exposure to higher crash risk imposes greater engagement risk on its auditor. Consistent with crash risk increasing auditor engagement risk, we find that crash risk is associated with a client’s poor accounting quality and high frequency of restatements, although auditors exert higher efforts when observing clients’ high crash risk. Taken altogether, our results suggest that a client’s crash risk serves as an informative signal for engagement risk, and that this factor plays a crucial role in shaping auditor-client contracting relationships. Journal: China Journal of Accounting Studies Pages: 184-213 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/21697213.2019.1661169 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1661169 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:2:p:184-213 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1676066_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Youfu Yao Author-X-Name-First: Youfu Author-X-Name-Last: Yao Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Title: Comment letters and internal control opinion shopping Abstract: Taking Chinese A-share listed firms from 2015 to 2017 as our samples, this paper investigates the supervision effect of comment letters on internal control opinion shopping at audit firm level, branch level and signing partner level respectively. The empirical results show that the pressure from comment letters can significantly decrease the probability of internal control opinion shopping at both audit firm level and signing partner level. This supervision effect is more pronounced when there are internal-control-related questions in comment letters or the firm’s annual auditor is required to give opinions on some questions in comment letters. As for the branch level of audit firms, it is found that the supervision effect of comment letters on internal control opinion shopping is more pronounced in the firms which switch from headquarters to branches. We also find comment letters have spillover effects on firms in the same industry, in the same province or with the same auditors. Journal: China Journal of Accounting Studies Pages: 214-244 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/21697213.2019.1676066 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1676066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:2:p:214-244 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1676064_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongqi Yuan Author-X-Name-First: Hongqi Author-X-Name-Last: Yuan Author-Name: Chujun Zhang Author-X-Name-First: Chujun Author-X-Name-Last: Zhang Author-Name: Desong Kong Author-X-Name-First: Desong Author-X-Name-Last: Kong Author-Name: Haina Shi Author-X-Name-First: Haina Author-X-Name-Last: Shi Title: The consequence of audit failure on audit firms: evidence from IPO approval in China Abstract: This paper examines a potential adverse consequence of audit failure. We study whether and how the audit firm’s audit failure impacts its client’s Initial Public Offering (IPO) rejection rate. Our empirical results show that the client’s IPO application rejection rates increases significantly after the audit failure. The significant increase in the IPO rejection rate holds regardless whether the audit firm is subject to regulatory sanctions on the audit failure or not. However, the sanctioned audit firm’s clients experience significantly higher IPO rejection rates than the non-sanctioned audit firm’s clients. Our further analysis reveals that the adverse outcome on clients’ IPO application varies by types of audit firm and by board of IPO listing. Journal: China Journal of Accounting Studies Pages: 245-269 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/21697213.2019.1676064 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1676064 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:2:p:245-269 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1676050_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dengjin Zheng Author-X-Name-First: Dengjin Author-X-Name-Last: Zheng Author-Name: Deren Xie Author-X-Name-First: Deren Author-X-Name-Last: Xie Author-Name: Wei Yuan Author-X-Name-First: Wei Author-X-Name-Last: Yuan Title: The CPC party organization in privately controlled listed companies and earnings management Abstract: This paper studies the real effect of the party organization of Communist Party of China (hereafter, CPCPO) on the privately controlled listed companies’ governance from the perspective of earnings management. We find a significantly negative relationship between the party organisation activities and earnings management. The possible mechanisms are to encourage controllers of those firms to participate in the activities of CPCPO and even serve as the secretaries, and to make directors whom are CPC party member enter audit committee. Furthermore, this relationship is more pronounced when the chairman or CEO is a CPC member, has political connections, and when the time is politically sensitive period. The relationship is also more pronounced in companies with higher agency costs, weaker information environments, and greater financing constraints. Different from previous literature focusing on the role of CPCPO in state-owned enterprises, this paper explores the governance role of CPCPO in privately controlled firms. Journal: China Journal of Accounting Studies Pages: 270-291 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/21697213.2019.1676050 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1676050 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:2:p:270-291 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1676044_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chuntao Li Author-X-Name-First: Chuntao Author-X-Name-Last: Li Author-Name: Hongmei Xu Author-X-Name-First: Hongmei Author-X-Name-Last: Xu Author-Name: Liwei Wang Author-X-Name-First: Liwei Author-X-Name-Last: Wang Author-Name: Peng Zhou Author-X-Name-First: Peng Author-X-Name-Last: Zhou Title: Short-selling and corporate innovation: evidence from the Chinese market Abstract: Short selling has been demonstrated as an important external corporate governance mechanism, which can discipline managerial behaviours and mitigate principle-agent conflicts in developed markets. With a data set of Chinese public companies, we examine the governance effect of short selling on corporate innovation in China. We find that short selling has a significantly positive effect on corporate innovation regarding both innovation quantity and quality. Our cross-sectional tests show that the positive effect of short-selling is more pronounced for firms with weaker internal and external corporate governance. Lastly, we document that short-selling improves corporate innovation through lowering firms’ information asymmetry and improving the efficiency of managerial contract. Our results indicate that short-selling is a necessary complementary mechanism of firms’ corporate governance system in China. Journal: China Journal of Accounting Studies Pages: 293-316 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/21697213.2019.1676044 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1676044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:3:p:293-316 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1695948_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jingjing LI Author-X-Name-First: Jingjing Author-X-Name-Last: LI Author-Name: Yingwen GUO Author-X-Name-First: Yingwen Author-X-Name-Last: GUO Author-Name: Minghai WEI Author-X-Name-First: Minghai Author-X-Name-Last: WEI Title: Performance commitment in M&As and stock price crash risk Abstract: This paper investigates the impact of performance commitment in M&A transactions on acquiring firms’ future crash risk. We find a positive relation between performance commitment and acquiring firms’ future crash risk, and this result is more pronounced in related-party M&A deals. These findings are consistent with our prediction that performance commitment regulation may bring about negative consequences by providing the parties with private information an opportunity to overstate the values of inferior target assets; the stock price will suddenly drop when the accumulated hidden bad news release to the market. We further systematically discuss the shortcomings in the theories and regulation related to performance commitment in M&As. We document that the current performance commitment contract is designed as a costless promise with low default cost, resulting in the information insiders make use of the regulation loopholes to aggressively expropriate from less-informed minority shareholders. Journal: China Journal of Accounting Studies Pages: 317-344 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/21697213.2019.1695948 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1695948 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:3:p:317-344 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1701252_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yin Xingqiang Author-X-Name-First: Yin Author-X-Name-Last: Xingqiang Author-Name: Hu Ning Author-X-Name-First: Hu Author-X-Name-Last: Ning Author-Name: Zhang Limin Author-X-Name-First: Zhang Author-X-Name-Last: Limin Title: Is the national talent project effective? Evidence from the Chinese academic accounting leading talents project Abstract: Based on the list of re-examination and selection of the two sessions of China’s Academic Accounting Leading Talent Project of the Ministry of Finance, we directly evaluate the policy effect of the talent project with a Difference-in-Difference approach. We find that, compared with the talents who are not selected in the project, the chosen talents publish more papers after being selected (18.2% higher), and more articles signed as the first author. The incremental downloads and citation rates of these papers after the selection are also more significant than those of the unselected ones. A series of sensitivity test also supports our main findings. Additional research finds that the results of the talent project are more significant for scholars who published fewer papers in the past and for scholars who got doctorates degree from ‘non-985’ universities. The above findings document that Chinese government projects aimed at the selection and cultivation of talent have a significantly positive effect. Journal: China Journal of Accounting Studies Pages: 345-363 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/21697213.2019.1701252 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1701252 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:3:p:345-363 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1701260_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Li Jianqiang Author-X-Name-First: Li Author-X-Name-Last: Jianqiang Author-Name: Ye Yunlong Author-X-Name-First: Ye Author-X-Name-Last: Yunlong Author-Name: Yu Yuxiao Author-X-Name-First: Yu Author-X-Name-Last: Yuxiao Author-Name: Wang Hongjian Author-X-Name-First: Wang Author-X-Name-Last: Hongjian Title: The labour contract law, profit shock and corporate short-term responses -based on the perspective of corporation earnings management Abstract: This paper has employed a difference-in-differences method to examine the impact of the Labour Contract Law on firm’s profit, and to investigate companies on how to cope with it by using earning management. It finds that, (1) the Labour Contract Law has led to labour-intensive enterprises to use earnings management to cope with profit shock in the short term; (2) in the long run, earnings management effect gradually weakens, and reverses in the fifth year; (3) because they can use advanced technology to replace the expensive labour force, innovative enterprises have stronger ability to cope with the impact of the Labour Contract Law in the future and more significant motivation to conduct earnings management in the short term. Based on the context that the labour contract influences labour-intensive enterprises’ profit, the study shows the short-term effect of earnings management to cope with the impact and enriches the research on the Labour Contract Law and the micro-enterprise behaviours. Journal: China Journal of Accounting Studies Pages: 364-384 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/21697213.2019.1701260 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1701260 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:3:p:364-384 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1703391_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chao Dou Author-X-Name-First: Chao Author-X-Name-Last: Dou Author-Name: Man Yuan Author-X-Name-First: Man Author-X-Name-Last: Yuan Author-Name: Xiao Chen Author-X-Name-First: Xiao Author-X-Name-Last: Chen Title: Government-background customers, audit risk and audit fee Abstract: Based on the 2007–2015 customer data of listed firms, this paper studies the impact in China of customers with a government background on the audit fee from the perspective of supply chain. It is claimed to be the first time this impact has been studied. The results indicate that the presence of a government-background customer helps to reduce the audit fee significantly. Moreover, the relationship is more evident when the customer is stable or comes from the central government, and we can also observe a stronger relationship under high financial constraints. Finally, the paper also shows that the existence of a government-background customer can effectively alleviate an enterprises’ audit risk, thus reducing the audit fee. Journal: China Journal of Accounting Studies Pages: 385-406 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/21697213.2019.1703391 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1703391 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:3:p:385-406 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1701259_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Xu Author-X-Name-First: Wei Author-X-Name-Last: Xu Author-Name: Zhenye Yao Author-X-Name-First: Zhenye Author-X-Name-Last: Yao Author-Name: Donghua Chen Author-X-Name-First: Donghua Author-X-Name-Last: Chen Title: Chinese annual report readability: measurement and test Abstract: Among existing researches, readability is an important research direction as a text feature of annual reports. But almost all relevant studies are based on English. In fact, readability in Chinese environment may be a problem worth studying from the perspective of motive and consequence. Accordingly, based on the analysis of the readability indexes of Chinese and English annual reports, this paper constructs three readability indexes and conducts empirical tests. Results show the average word number of each clause, the proportion of adverbs and conjunctions in each sentence, and the arithmetic mean of them are probably a reasonable set of measures. As measures aforementioned, they better meet theoretical expectation and are consistent with relevant research results. Further examinations of other text features found that length of text and count of numbers and tables may not be good measures. Work in this paper provide some basic reference for subsequent researches. Journal: China Journal of Accounting Studies Pages: 407-437 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/21697213.2019.1701259 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1701259 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:3:p:407-437 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1729580_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fei Teng Author-X-Name-First: Fei Author-X-Name-Last: Teng Author-Name: Yu Xin Author-X-Name-First: Yu Author-X-Name-Last: Xin Author-Name: Qian Shu Author-X-Name-First: Qian Author-X-Name-Last: Shu Author-Name: Liping Xu Author-X-Name-First: Liping Author-X-Name-Last: Xu Title: The helping hand: stock price crash risk and government subsidy Abstract: This study examines a channel of the government’s helping hand, the government subsidies for firms exposed to stock price crash risk. Using data on China’s A-share non-financial listed companies from 2008 to 2016, we find that higher crash risk exposure induces more government subsidy. Compared with non-state-controlled companies, state-controlled companies receive government subsidies in a more timely manner. Further study finds that companies with closer relationships with the government, located in regions with a more cordial politics-business environment, and are pivotal to the regional economy, receive more government subsidies facing stock price risk exposure. The study also finds that companies mainly receive economic development-oriented government subsidies; and the government subsidy, in turn, helps to mitigate the negative impact of the stock price risk exposure on their borrowing capacity. This paper enriches the studies on the economic consequences of crash risk and expands the research on interactions between the government and the market. Journal: China Journal of Accounting Studies Pages: 439-466 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1729580 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1729580 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:439-466 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1755945_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zuji Liu Author-X-Name-First: Zuji Author-X-Name-Last: Liu Author-Name: Shuwei Sun Author-X-Name-First: Shuwei Author-X-Name-Last: Sun Author-Name: Xun Hu Author-X-Name-First: Xun Author-X-Name-Last: Hu Author-Name: Xianjie He Author-X-Name-First: Xianjie Author-X-Name-Last: He Title: Socialized charitable foundations and accounting information quality Abstract: Separating the functions of the government from those of charitable foundations is a common concern of regulators and scholars. Taking the foundations from 2006 to 2014 as a sample, we investigated the economic consequences of socialising charitable foundations from the perspective of accounting information quality. Empirical results show that the accounting information quality of socialised foundations is higher than that of non-socialised ones. It is still tenable after endogeneity is taken into account. The results of cross-sectional test indicate that the difference between the accounting information quality of socialised and non-socialised foundations becomes more significant when their regional institutional environment is relatively bad, when they are local foundations, when they raise funds publicly, and when they fail to engage top-100 accounting firms in audits. The conclusion provides empirical support for China to improve the information disclosure systems of charitable foundations and to promote their socialising transformation. Journal: China Journal of Accounting Studies Pages: 467-488 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1755945 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1755945 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:467-488 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1745996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wang Yuwei Author-X-Name-First: Wang Author-X-Name-Last: Yuwei Author-Name: Li Hanshu Author-X-Name-First: Li Author-X-Name-Last: Hanshu Title: Banking structure and SMEs financing – evidence from micro and macro database Abstract: This paper uses micro- and macro-level data to prove that U-shaped relationship exists between SME financing and banking structure, that is, as the proportion of small banks increases, the financing difficulty of SMEs declines at the beginning, then rises. Further studies find that the regional marketisation, the activity of small and medium-sized enterprises, and the increase in the density of large bank outlets will lead to a flatter U-shaped curve, representing a smaller influence of the banking structure on SME financing. It can be seen that the banking structure is not necessarily one of the most important factors to alleviate the SME financing difficulty. The government should further promote market-oriented reforms, improve the business environment for SMEs, and promote their own development. In this way, the information cost difference between enterprises of different scales can be narrowed, and the financing environment of SMEs can be fundamentally improved. Journal: China Journal of Accounting Studies Pages: 489-503 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1745996 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1745996 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:489-503 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1745998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiongyuan Wang Author-X-Name-First: Xiongyuan Author-X-Name-Last: Wang Author-Name: Jianhua Tan Author-X-Name-First: Jianhua Author-X-Name-Last: Tan Title: Does logistics service standardization matter for corporate investment? Abstract: By promoting the logistics services standardisation, China has reduced circulation costs and improved circulation efficiency, thereby helping economic growth. We explore how logistics service standardisation affects corporate investment behaviour. Firstly, logistics services standardisation significantly promotes corporate investment. Secondly, the logistics services standardisation has improved the level of investment of enterprises by improving the growth and alleviating financial constraints. Thirdly, the grouping tests based on the circulation efficiency, production efficiency, and geographical distance of the supply chain show that the above promotion effects mainly exist in enterprises with lower circulation efficiency, lower production efficiency, and longer geographical distances in the supply chain. This study reveals the role of logistics standardisation in promoting corporate investment and its impact mechanism in the context of the circulation system reform, and expands the study of the effects of institutional influence on investment and standardisation on economic growth. Journal: China Journal of Accounting Studies Pages: 504-523 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1745998 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1745998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:504-523 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1748837_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Pan Author-X-Name-First: Jun Author-X-Name-Last: Pan Author-Name: Yipin Yu Author-X-Name-First: Yipin Author-X-Name-Last: Yu Author-Name: Liangliang Wang Author-X-Name-First: Liangliang Author-X-Name-Last: Wang Author-Name: Xuefeng Jing Author-X-Name-First: Xuefeng Author-X-Name-Last: Jing Title: Monetary policy, differences among issuing agencies, and the pricing of local government bonds Abstract: Based on a sample of local government bonds from 2015 to 2018, this paper examines the impact of monetary policy on the pricing of local government bonds. Furthermore, this paper explores how the differences among issuing agencies affect this relationship. The empirical results show that loose monetary policy can reduce the spread of local government bonds. The degree of fiscal decentralisation and the governance ability of the government could moderate the impact of monetary policy on the spread of local government bond issuance, the debt risk of local government might increase the impact of monetary policy on the spread of local government bond issuance. In addition, tests on the intermediary mechanism by which monetary policy affects local government bond pricing show that loose monetary policy can reduce the spread of local government bond issuance by increasing the supply of market capital and improving the financial status of local governments. Journal: China Journal of Accounting Studies Pages: 524-541 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1748837 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1748837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:524-541 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1748910_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xintu Lei Author-X-Name-First: Xintu Author-X-Name-Last: Lei Author-Name: Honghua Wang Author-X-Name-First: Honghua Author-X-Name-Last: Wang Title: Does the government’s anti-corruption storm improve the quality of corporate earnings? — Evidence from Chinese listed companies Abstract: This paper uses A-share listed companies as a sample to examine the impact of the exogenous event of the 18th National Congress of the Communist Party of China(CPC) on the substitution effect of three types of earnings management behaviors. Under the impact of the anti-corruption storm, while reducing accrual earnings management behaviors, enterprises switch to more hidden earnings management behaviors,such as real earnings management and classification shifting earnings management. The substitution effect of three types of earnings management behaviors also exists in non-SOEs. However, compared with non-SOEs, the decline in accrual earnings management adopted by state-owned enterprises(SOEs), and the increase in real earnings management and classification shifting earnings management are significantly larger than those of non-SOEs. Further research finds that the significant reduction of corporate political connections after the anti-corruption storm is an important way to generate the substitution effect of earnings management behaviors. Journal: China Journal of Accounting Studies Pages: 542-566 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1748910 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1748910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:542-566 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1706932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Correction Journal: China Journal of Accounting Studies Pages: 567-567 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/21697213.2019.1706932 File-URL: http://hdl.handle.net/10.1080/21697213.2019.1706932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:7:y:2019:i:4:p:567-567 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1764200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Ding Author-X-Name-First: Xin Author-X-Name-Last: Ding Author-Name: Zhonghai Yang Author-X-Name-First: Zhonghai Author-X-Name-Last: Yang Title: Monetary policy tightening, accounting information comparability and bank borrowing Abstract: This paper empirically tests the effect of accounting information comparability quality characteristic on the scale, the cost and the credit term structure of bank borrowing of the listed companies as well as whether accounting information comparability can affect the bank credit financing of the listed companies in the period of monetary policy tightening by utilising the data during 2005 to 2015 in Chinese Ａ -share market. This study finds that: Firstly, the higher of the accounting information comparability, the more of the scale of bank borrowing acquired, the lower of the cost of bank borrowing; Secondly, agent cost hypothesis and the signal transmission hypothesis exist simultaneously in the credit term structure of listed companies in China. For the listed companies with short-term credit structure, improving accounting information comparability will help extending that credit term structure, supporting the agent cost hypothesis. For the listed companies with long-term credit term structure, improving accounting information comparability will reduce that credit term structure, which provides the empirical evidence of the signal transmission hypothesis. Thirdly, in the monetary tightening period, improving accounting information comparability could effectively increase the amount of bank borrowing acquired, reduce the cost of bank borrowing and extend credit term structure (the listed companies with short-term credit structure). For the listed companies with long-term credit term structure, the listed companies with much higher accounting information comparability will weaken the motivation of releasing the ‘higher quality’ signal to the capital market, that is to say, the signal transmission effect is very likely to be constrained in the monetary tightening period. The conclusions of this paper enrich the economic consequences research of the accounting information comparability and expand the research on the interaction between macroeconomic policies and micro-financial behaviour of the corporate. Our results open up new horizons for the banks, the financial decision of listed companies and government department making decision. Journal: China Journal of Accounting Studies Pages: 1-34 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1764200 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1764200 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:1-34 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822023_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qianwei Ying Author-X-Name-First: Qianwei Author-X-Name-Last: Ying Author-Name: Siyi He Author-X-Name-First: Siyi Author-X-Name-Last: He Title: Is the CEOs’ financial and accounting education experience valuable? Evidence from the perspective of M&A performance Abstract: Using the manually collected data of CEOs’ financial and accounting education experience from A-share listed companies during 2008 to 2016, we find in this paper that CEOs who had received financial and accounting education could play a professional role in M&A decision-making and improve M&A performance. The positive effect of CEOs’ financial and accounting education experience on M&A performance is more significant in non-SOEs, especially those with stronger supervision and incentives to CEOs. Further tests show that CEOs with financial and accounting education experience improve the efficiency of M&A by reducing the premium, shortening the duration and promoting the synergistic effect of M&A. From the perspective of M&A performance, this paper provides empirical evidence for the economic value of financial and accounting education. Journal: China Journal of Accounting Studies Pages: 35-65 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1822023 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:35-65 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1813968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bofu Deng Author-X-Name-First: Bofu Author-X-Name-Last: Deng Author-Name: Jiawei Liu Author-X-Name-First: Jiawei Author-X-Name-Last: Liu Author-Name: Li Ji Author-X-Name-First: Li Author-X-Name-Last: Ji Title: Corporate awards and executive compensation: empirical evidence from Chinese A-Share listed companies Abstract: From the perspective of non-financial performance, this study investigates the effect of corporate awards on executive compensation. We find that as a measure of non-financial performance, corporate awards help increase executive compensation by demonstrating the company’s status in the industry through the efforts of executives. In addition, corporate awards play an important role in supplementing the financial performance of a firm to improve executives’ pay-performance sensitivity. Our empirical evidence also reveals that corporate awards are included as a subjective indicator to evaluate the non-financial performance of state-owned enterprises (SOEs) in China: the increase in compensation and the stickiness of this compensation for financial performance based on corporate awards in SOEs are both stronger than in non-SOEs. Moreover, when managers cannot fully obtain other forms of incentives (such as perk consumption or equity incentives), the effect of corporate awards on managers’ monetary remuneration is more significant. Journal: China Journal of Accounting Studies Pages: 66-96 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1813968 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1813968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:66-96 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1813969_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ning Hu Author-X-Name-First: Ning Author-X-Name-Last: Hu Author-Name: Yanan Cao Author-X-Name-First: Yanan Author-X-Name-Last: Cao Author-Name: Nan Zhou Author-X-Name-First: Nan Author-X-Name-Last: Zhou Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Title: Disclosure of regulatory information and creditor pricing decision: evidence from Chinese comment letters Abstract: Using Chinese comment letters data, we investigate the impact of the disclosure of comment letters on the cost of debt financing. Empirical results show that when the comment letters are publicly disclosed, creditors charge borrowers significantly higher cost of debt financing. Furthermore, when more questions or risk factors are contained in the comment letters or when professional opinions from a third party are requested to issue, the cost of debt financing is further higher. However, when the comment letters are not publicly disclosed, the cost of debt financing is not affected. In cross-sectional test, we find that the degree of regional market development and the characteristics of debtor both affect the relationship between cost of debt financing and comment letters. Our research not only supplements the literature on the economic consequences of comment letters from the perspective of information effect, but also reveals the importance of public disclosure of regulatory information in semi-strong efficient market. Journal: China Journal of Accounting Studies Pages: 97-120 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1813969 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1813969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:97-120 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1813970_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yilin Luo Author-X-Name-First: Yilin Author-X-Name-Last: Luo Author-Name: Jianqiao Hong Author-X-Name-First: Jianqiao Author-X-Name-Last: Hong Author-Name: Chenkai Ni Author-X-Name-First: Chenkai Author-X-Name-Last: Ni Author-Name: Guochen Wang Author-X-Name-First: Guochen Author-X-Name-Last: Wang Title: Can individual investors identify economic links? Evidence from initial quarterly earnings announcements within industries Abstract: We examine whether individual investors in China have the ability to acquire and process the information of industry peers. We exploit the initial earnings announcement within each industry-quarter during 2015-2017 and use the frequency of investors’ daily discussions on the Xue Qiu platform to capture their information acquisition activities. We find that non-announcing firms’ investors exhibit a significant increase in their discussion frequency around the initial earnings announcement within an industry. These increased discussions facilitate the information transfer from the announcing firm to its non-announcing peers, manifested by the latter’s reactions in share prices and trading volume to the former’s unexpected earnings. In the cross-section, investors’ acquisition and processing of peer information are more pronounced when non-announcing firms exhibit a worse information environment or a stronger economic link with the announcing firm. Collectively, individual investors in China exhibit some rationality in acquiring and utilizing information of economically linked firms. Journal: China Journal of Accounting Studies Pages: 121-153 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1813970 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1813970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:121-153 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822497_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 154-154 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1822497 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822497 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:154-154 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822498_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2019 Journal: China Journal of Accounting Studies Pages: 1-2 Issue: 1 Volume: 8 Year: 2020 Month: 01 X-DOI: 10.1080/21697213.2020.1822498 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822498 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822026_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jian Chu Author-X-Name-First: Jian Author-X-Name-Last: Chu Author-Name: Junxiong Fang Author-X-Name-First: Junxiong Author-X-Name-Last: Fang Title: Punish one, teach a hundred? A study on the failure of the indirect deterrence effects of regulatory punishments Abstract: The supervision of listed firms plays an important role in improving the quality of listed firms and the efficiency of resource allocation in the capital market. We study the effectiveness and realisation mechanisms of the indirect deterrence effects of regulatory punishments from the perspective of executives’ interlock. We find that the financial misstatement decreases for punished firms while increases for innocent firms which interlock with punished ones through punished executives after regulatory punishments. Further analyses indicate that punished executives are more likely to leave these innocent firms after being punished. But independent directors actively saying ‘no’ are more likely to resign from these innocent firms and auditors do not make adjustment to audit decisions for the rising engagement risk. Therefore, the aforementioned negative adjustments exceeding positive adjustments of corporate governance results in the failure of the indirect deterrence effects of regulatory punishments, finally leading to these innocent firms’ value being impaired. Journal: China Journal of Accounting Studies Pages: 155-182 Issue: 2 Volume: 8 Year: 2020 Month: 04 X-DOI: 10.1080/21697213.2020.1822026 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:2:p:155-182 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822028_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongqi Yuan Author-X-Name-First: Hongqi Author-X-Name-Last: Yuan Author-Name: Chong Gao Author-X-Name-First: Chong Author-X-Name-Last: Gao Author-Name: Haina Shi Author-X-Name-First: Haina Author-X-Name-Last: Shi Title: Failure in performance commitment and goodwill impairment: evidence from M&As Abstract: We examine whether and how the failure in performance commitment by an acquiree affects the acquirers’ recognition of goodwill impairment. Based on a sample of A-share-listed firms during 2008–2016, we document the following evidence. First, both the likelihood and amounts of goodwill impairment increase significantly if an acquiree fails to meet the performance commitment. The results are robust to alternative measures of failed commitment and alternative sampling. Second, the relation is more pronounced (i) in the bear markets than in the bull markets, and (ii) for voluntary adoption of commitment terms than for mandatory ones. Third, the likelihood of goodwill impairment in the post-commitment period increases if an acquiree successfully met the commitment, especially if the acquiree met the commitment through earnings management. Last but not least, timely recognition of goodwill impairment for failed commitments leads to a reduction of future stock price crash risk. Journal: China Journal of Accounting Studies Pages: 183-213 Issue: 2 Volume: 8 Year: 2020 Month: 04 X-DOI: 10.1080/21697213.2020.1822028 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:2:p:183-213 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822025_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jianqiao Yu Author-X-Name-First: Jianqiao Author-X-Name-Last: Yu Author-Name: Ting Luo Author-X-Name-First: Ting Author-X-Name-Last: Luo Title: Top executives’ school-tie connections and management forecast disclosure Abstract: This paper investigates whether top executives’ dependence on social connections has an impact on the information environment of listed companies. Specifically, this paper explores the role of school ties between firms’ and suppliers’ top executives on management earnings forecasts, an important channel of public information disclosure. We find a negative relation between a firm’s school ties with its suppliers and the likelihood/frequency to issue management forecasts, indicating that top executives’ school ties in a way substitute management forecasts and become the information channel along the supply chain. Further, we find the association is stronger when the firm faces higher proprietary cost or operational uncertainty, but the association becomes weaker when suppliers have bargaining advantage over the firm. Finally, we find the decrease in management forecast disclosure driven by school-tie connections weakens the access of firm-specific information for external information users, which may put individual investors in a more vulnerable position. Journal: China Journal of Accounting Studies Pages: 214-248 Issue: 2 Volume: 8 Year: 2020 Month: 04 X-DOI: 10.1080/21697213.2020.1822025 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:2:p:214-248 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Bai Author-X-Name-First: Jun Author-X-Name-Last: Bai Author-Name: Xiaoyun Gong Author-X-Name-First: Xiaoyun Author-X-Name-Last: Gong Author-Name: Xiangfang Zhao Author-X-Name-First: Xiangfang Author-X-Name-Last: Zhao Title: Credit mismatch and non-financial firms’ shadow banking activities —evidence based on entrusted loan activities Abstract: When governments opt for financial repression policies, credit mismatch becomes more prevalent. This may lead some non-financial firms with excessive loans to financialize their operations and undertake shadow banking activities, that is, entrusted loans. Using all listed Chinese firm's financial data and entrusted loans data from 2008 to 2016, this study investigates the impact of credit mismatch on firm's entrusted loans. Results show that, the more credit mismatch, the higher the tendency and the size of firm's entrusted loans. Above the relationship is more significant when under some certain backgrounds, such as a higher degree of government intervention, tighter monetary policy as well as lack of investment opportunities, and state-owned enterprises. Further analysis reveals that a firm's engagement in entrusted loans can harm its main business activities. This study intends to enhance our understanding of the shadow banking activities as means of funds reallocation within China's financial system. Journal: China Journal of Accounting Studies Pages: 249-271 Issue: 2 Volume: 8 Year: 2020 Month: 04 X-DOI: 10.1080/21697213.2020.1822027 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:2:p:249-271 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1822024_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhi Jin Author-X-Name-First: Zhi Author-X-Name-Last: Jin Author-Name: Liguang Zhang Author-X-Name-First: Liguang Author-X-Name-Last: Zhang Author-Name: Qingquan Xin Author-X-Name-First: Qingquan Author-X-Name-Last: Xin Title: Transportation infrastructure and resource allocation of capital market: evidence from high-speed rail opening and company going public Abstract: Using the high-speed rail opening of each city in China as a natural experiment, we apply the difference-in-differences model to investigate how the transportation infrastructure in a region affects the behaviour of local company going public. We find that after high-speed rail runs through a city, the number of local company going public increases significantly, and the approval probability of going public is improved significantly. Further mechanism analysis shows that the high-speed rail opening reduces the cost of obtaining private information about local companies, making it easier for them to absorb venture capital and hire high-quality intermediary institutions. In addition, the decline of information cost both enables external stakeholders to select better companies and lowers the financing cost of these companies. This paper shows that the improvement of transportation infrastructure can improve corporate financing efficiency and optimise the efficiency of resource allocation in capital markets. Journal: China Journal of Accounting Studies Pages: 272-297 Issue: 2 Volume: 8 Year: 2020 Month: 04 X-DOI: 10.1080/21697213.2020.1822024 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1822024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:2:p:272-297 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1859251_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guochao Yang Author-X-Name-First: Guochao Author-X-Name-Last: Yang Author-Name: Yuzhen Kuang Author-X-Name-First: Yuzhen Author-X-Name-Last: Kuang Author-Name: Bingcheng Li Author-X-Name-First: Bingcheng Author-X-Name-Last: Li Title: Staying idle or investing in prevention: the short-term and long-term impact of cost stickiness on firm value Abstract: Current theories about cost stickiness explain the phenomenon from the perspectives of adjustment cost, optimistic management expectations, and agency costs. However, the economic implications implied by different theories are different. We find that, in general, cost stickiness will reduce firm value in the short-term, but increase it in the long-term. That is, cost stickiness has an intertemporal heterogeneous impact on firm value. Furthermore, we found that the intertemporal heterogeneous effect of cost stickiness on firm value is mainly manifested in enterprises with higher adjustment cost, more optimistic manager’s expectations, and lower agent costs. The above findings suggest that cost stickiness is a rational choice made after weighing its short-term costs and long-term benefits. The results of the threshold regression model show that rapid adjustment of costs (anti-stickiness) in the short-term will reduce the firm value, while maintaining a modest cost stickiness can increase the firm value in the long run. Journal: China Journal of Accounting Studies Pages: 298-329 Issue: 2 Volume: 8 Year: 2020 Month: 04 X-DOI: 10.1080/21697213.2020.1859251 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1859251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:2:p:298-329 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1921975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liangyin Chen Author-X-Name-First: Liangyin Author-X-Name-Last: Chen Author-Name: Jun Huang Author-X-Name-First: Jun Author-X-Name-Last: Huang Author-Name: Xinyuan Chen Author-X-Name-First: Xinyuan Author-X-Name-Last: Chen Title: Mixed-ownership reform and auditor choice: evidence from listed state-owned enterprises Abstract: Based on data of state-owned enterprises listed on the Shanghai and Shenzhen Stock Exchanges from 2003 to 2017, this study examines how mixed-ownership reform affects a company’s auditor choice from the perspectives of ownership structure and governance. We find that the higher the degree of mixed-ownership reform of state-owned enterprises, the more inclined they are to choose international ‘big four’ accounting firms as auditors. Further, this effect is more pronounced for firms in high competition industries, in low marketisation regions and with low information transparency. Notably, mixed-ownership reform increases financial constraints of state-owned enterprises. The results of a mediation test suggest that mixed-ownership reform improves the accounting information quality of state-owned enterprises through the choice of auditors. Our study enriches the literature of mixed-ownership reform and auditor choice and provides empirical evidence of the economic consequences of mixed-ownership reform, which is relevant for guiding future state-owned enterprises reform. Journal: China Journal of Accounting Studies Pages: 435-469 Issue: 3 Volume: 8 Year: 2020 Month: 07 X-DOI: 10.1080/21697213.2021.1921975 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1921975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:3:p:435-469 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1881277_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Lin Author-X-Name-First: Yan Author-X-Name-Last: Lin Author-Name: Yihuan Mao Author-X-Name-First: Yihuan Author-X-Name-Last: Mao Author-Name: Hongtao Tan Author-X-Name-First: Hongtao Author-X-Name-Last: Tan Title: Political connections and corporate environmental protection-related investment: setting a benchmark or shrinking back? Abstract: Protecting environment has become a vital responsibility for corporations. Based on manually collected data of China’s A-share listed companies from 2010 to 2017, this study investigates the effìct of corporate political connections (PCs) on corporate environmental protection-related investment (EPI). Our findings suggest that PCs negatively influenc#206; firms’ EPI. Specifically, the more politically connected top executives are hired or the higher the political hierarchy of such executives, the lower would be the firm’s EPI. We further find that the negative influence on EPI originates from the executives-related PCs compared with directors-related PCs. Additional tests first reveal that firms’ EPI fails to prompt up corporate value. Second, the establishment of committees under the board could alleviate the negative influence of PCs on EPI. Finally, government regulation mitigates the negative effects of PCs on EPI. Journal: China Journal of Accounting Studies Pages: 349-379 Issue: 3 Volume: 8 Year: 2020 Month: 07 X-DOI: 10.1080/21697213.2021.1881277 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1881277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:3:p:349-379 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1881276_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jing Chen Author-X-Name-First: Jing Author-X-Name-Last: Chen Author-Name: Junxiong Fang Author-X-Name-First: Junxiong Author-X-Name-Last: Fang Title: Reclassification of income statement items and weight adjustment of compensation performance indicators Abstract: The selection and weighting of performance indicators are of vital importance for an effective compensation contract. We examine the effect of the reclassification of income statement items, caused by China’s new Accounting Standards for Business Enterprises (ASBE) in 2007 on the weight adjustment of compensation performance indicators. The results show that the sensitivity of executive pay and investment income increases significantly after ASBE moves investment income in the income statement from below-the-line of operating income to above-the-line, which indicates that the disclosure position of income statement items is directly related to the weight of compensation performance indicators. We also find that the earnings persistence of investment income increases significantly after ASBE, which implies that the reclassification of investment income conforms to business practice and also performs well. However, the increased sensitivity of executive pay and investment income may induce management’s opportunistic investment in financial assets. Journal: China Journal of Accounting Studies Pages: 410-434 Issue: 3 Volume: 8 Year: 2020 Month: 07 X-DOI: 10.1080/21697213.2021.1881276 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1881276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:3:p:410-434 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1847981_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhiying Hu Author-X-Name-First: Zhiying Author-X-Name-Last: Hu Author-Name: Menglu Tong Author-X-Name-First: Menglu Author-X-Name-Last: Tong Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Title: Anti-takeover provisions and executive excess compensation: evidence from China Abstract: This article examines the effect of anti-takeover provisions on executive excess compensation and find a positive association. Five further findings are as follows. First, among specific provisions, the anti-takeover provisions mainly used to delay the takeover process have a stronger effect on executive excess compensation. Second, the positive effect of anti-takeover provisions on excess compensation is more significant in firms with higher executive power, less independent boards, and higher managerial myopia. Third, anti-takeover provisions have less effect on executive excess compensation in state-owned enterprises compared with non-state-owned enterprises. Fourth, the impact of the ownership structure on the anti-takeover provisions and excess compensation is non-linear. Fifth, the anti-takeover provisions decrease firm value, especially in those firms with more executive excess compensation. This article complements the literature on the anti-takeover provisions and executive compensation, which has great significance for the improvement of corporate governance. Journal: China Journal of Accounting Studies Pages: 380-409 Issue: 3 Volume: 8 Year: 2020 Month: 07 X-DOI: 10.1080/21697213.2020.1847981 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1847981 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:3:p:380-409 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1889775_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Wang Author-X-Name-First: Jun Author-X-Name-Last: Wang Author-Name: Ying Qiu Author-X-Name-First: Ying Author-X-Name-Last: Qiu Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Title: Professional liability insurance contracts for auditors: differential pricing and the audit quality effect Abstract: In recent years, the Chinese government and the public accounting profession have advocated the audit practitioners’ use of professional liability insurance (PLI). As a tool to divert audit firms’ business risk, PLI contracts could decrease auditors’ diligence in conducting audits, which might harm audit quality. Insurance companies might perceive the transfer of audit risks, thus having an incentive to monitor risky audit firms to mitigate potential economic losses related to audit failures. We use proprietary  PLI contract data and find that insurance companies charge smaller audit firms a significantly higher price and show a lower tendency to offer favourable indemnity clauses. The difference-in-differences analysis reveals that the magnitude of audit adjustments significantly increases after small audit firms purchase PLI and the effect is dominated by income-decreasing audit adjustments. Our evidence supports the notion that insurance contracts play a governance role for audit intermediaries with a higher risk profile. Journal: China Journal of Accounting Studies Pages: 331-348 Issue: 3 Volume: 8 Year: 2020 Month: 07 X-DOI: 10.1080/21697213.2020.1889775 File-URL: http://hdl.handle.net/10.1080/21697213.2020.1889775 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:3:p:331-348 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1926412_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xinyi Zhang Author-X-Name-First: Xinyi Author-X-Name-Last: Zhang Author-Name: Chenyu Cui Author-X-Name-First: Chenyu Author-X-Name-Last: Cui Author-Name: Deren Xie Author-X-Name-First: Deren Author-X-Name-Last: Xie Title: Are Dividends All for Rewarding Investors? Evidence from Payouts Induced by Return on Equity Targets Abstract: Dividends have long been perceived as a way for firms to reward investors. However, managers are likely to inflate return on equity (ROE) by paying out dividends because doing so reduces owners’ equity. We utilise performance-vesting equity incentive plans that adopt ROE as the performance measure to examine this possibility. We find that firms with pre-dividend ROE slightly below the vesting target are more likely to pay dividends and are associated with larger payout ratios than others. Because weighted average ROE’s computation assigns more weight to earlier paid dividends, we also find that these firms are more likely to pay dividends earlier and have larger time-weighted payout ratios. Further investigations show that dividends substitute for accrual and real earnings management in inflating ROE. Finally, we obtain evidence that ROE-induced dividends reduce firm value in the long run. Overall, our evidence reveals that dividends may be induced by managers’ incentives to meet ROE targets. This phenomenon deserves more attention, as nowadays regulators often take an exclusively positive view of dividends. Journal: China Journal of Accounting Studies Pages: 470-494 Issue: 3 Volume: 8 Year: 2020 Month: 07 X-DOI: 10.1080/21697213.2021.1926412 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1926412 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:3:p:470-494 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1966178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hualing Yang Author-X-Name-First: Hualing Author-X-Name-Last: Yang Author-Name: Yunbiao Ma Author-X-Name-First: Yunbiao Author-X-Name-Last: Ma Title: Does insider selling affect audit fees? Abstract: Using a sample of Chinese A-share listed companies from 2006 to 2016, this paper examines the impact of insider selling on audit fees. The results show that auditors of clients with higher insider selling tend to charge higher fees. Mechanism tests show that the presence of insider selling is associated with a higher level of audit risk, which in turn increases audit fees. Further tests show that, the positive relation between insider selling and audit fees is stronger for non-SOEs and BIG4 audited firms; auditors only charge higher audit fees for share selling of large shareholders and directors. These results indicate that auditors can identify the risk of insider selling and charge higher audit fees, and provide new insight into the economic consequence of insider selling and a new determinant of audit fees. Journal: China Journal of Accounting Studies Pages: 556-574 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/21697213.2021.1966178 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1966178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:4:p:556-574 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1966177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiao Zheng Author-X-Name-First: Qiao Author-X-Name-Last: Zheng Author-Name: Junsheng Zhang Author-X-Name-First: Junsheng Author-X-Name-Last: Zhang Author-Name: Yue Qi Author-X-Name-First: Yue Author-X-Name-Last: Qi Title: Joint and several liability, litigation preconditions and audit quality Abstract: The paper examines the economic effects of the trial judgement of joint and several liability on BDO China. Our study has the following findings: first, the capital market regarded the judgement as a signal to strengthen investor protection; second, the judgement pushed the auditors to enhance their prudence; third, the clients’ financial reporting quality are improved after the judgment; fourth, the above phenomena are more pronounced in areas where administrative penalties or criminal convictions are not the litigation preconditions for civil proceedings for false statements. The study denies Simunic et al. (2017)’s assertion that the legal system in China makes the recovery of damages from auditors is difficult. Journal: China Journal of Accounting Studies Pages: 575-598 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/21697213.2021.1966177 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1966177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:4:p:575-598 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1966173_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiang Cao Author-X-Name-First: Qiang Author-X-Name-Last: Cao Author-Name: Nanwei Hu Author-X-Name-First: Nanwei Author-X-Name-Last: Hu Title: Does gender discrimination exist in the promotion of CPAs? - Evidence based on the CPA firm transformation Abstract: In this paper, we examine the gender discrimination issue in the promotion process of CPAs under the background of CPA firms’ organizational transformation in China. We find that there are significant gender differences when CPAs are promoted to the partner position. We further explore whether the economic contribution of a CPA, his/her audit quality, and the psychological difference among different genders could explain the above gender differences. However, we did not find any supporting evidence. We even find that the female candidates provide significantly higher audit quality than their male competitors in the promotion year. Our empirical evidence indicates that females face higher promotion standards than male CPAs when they are promoted to the partner position. There is significant gender discrimination during the promotion process in CPA firms. Our paper contributes to the study of CPA promotion mechanism, and provides empirical evidence on the gender discrimination in promotion. Journal: China Journal of Accounting Studies Pages: 635-663 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/21697213.2021.1966173 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1966173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:4:p:635-663 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1966174_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Xu Author-X-Name-First: Wei Author-X-Name-Last: Xu Author-Name: Wenyun Yao Author-X-Name-First: Wenyun Author-X-Name-Last: Yao Author-Name: Mengying You Author-X-Name-First: Mengying Author-X-Name-Last: You Title: Does the personal characteristics of the public offering committee members affect the issuance quality? An empirical study based on gender characteristics Abstract: The Public Offering Review Committee plays a significant role in China’s capital market, in which the individual determines whether the company can be listed or not, then affect the issuance quality. Most of the previous research take the ‘social connect’ as committee members’ personal characteristics, This paper tests the relationship between the committee members’ gender characteristics and the quality of the issuance. We found that the participation of female committee members significantly lowers the pass rate of applicant companies, and the accounting performance and market performance of listed companies approved by the female committee members are better than those of the listed companies approved by an all-male Committee. In theory, these findings may contribute to the understanding of the decision-making mechanism of the committee members and the role of women in organizational economic decision-making, and may provide certain policy reference in the reform of the offering system and the elimination of gender discrimination. Journal: China Journal of Accounting Studies Pages: 599-634 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/21697213.2021.1966174 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1966174 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:4:p:599-634 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1966176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Youfu Yao Author-X-Name-First: Youfu Author-X-Name-Last: Yao Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Author-Name: Tong Sun Author-X-Name-First: Tong Author-X-Name-Last: Sun Title: Do comment letters from the stock exchanges have governance effect on R&D manipulation? Abstract: As an important reform of supervision, the comment letter mechanism adopted by the Shanghai Stock Exchange and the Shenzhen Stock Exchange has been paid much attention by regulators and academics. Taking Chinese A-share listed firms from 2015 to 2018 as our samples, this paper investigates the impact of comment letters on companies’ R&D manipulation. Our empirical results show that R&D-related comment letters can effectively reduce companies’ R&D manipulation. Further tests show that the more timely the comment letters and responses letters, or the stronger the intensity of comment letters, the higher the governance effect of comment letters on R&D manipulations. Specifically, when R&D-related comment letters involve the questions of R&D manipulation directly, the governance effect is pronounced. The governance effect of R&D-related comment letters is stronger for firms which are punished following the receipt of comment letters or firms which are paid more market attention. Finally, from the perspective of motivations of R&D manipulation, the governance effect of R&D-related comment letters is more pronounced in samples with strong tax-reducing incentives. After employing PSM-DID to control endogeneity, the main results are still held. To sum up, our findings enrich the growing body of research on the effectiveness of the comment letter mechanism and provide important implications for improving the resources allocation in R&D. Journal: China Journal of Accounting Studies Pages: 528-555 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/21697213.2021.1966176 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1966176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:4:p:528-555 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1966175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xingqiang Du Author-X-Name-First: Xingqiang Author-X-Name-Last: Du Author-Name: Jingwei Yin Author-X-Name-First: Jingwei Author-X-Name-Last: Yin Author-Name: Ying Zhang Author-X-Name-First: Ying Author-X-Name-Last: Zhang Author-Name: Yingjie Du Author-X-Name-First: Yingjie Author-X-Name-Last: Du Title: The globalised board of directors and corporate environmental performance: evidence from China Abstract: This study examines the association between the globalised board of directors and corporate environmental performance, and then investigates the moderating effect of regional green development on the above association. Using a sample from the Chinese stock market during the period of 2008–2016, the findings reveal that the globalised board of directors is significantly positively associated with corporate environmental performance, suggesting that the globalised board of directors can play an important role in strengthening the moral and strategic motivations of corporate environmental responsibility, and enhance corporate environmental performance. Further, regional green development attenuates the positive relation between the globalised board of directors and corporate environmental performance. Above findings are robust to a variety of sensitivity tests and our main conclusions are still valid after controlling for the potential endogeneity between the globalised board of directors and corporate environmental performance. Interestingly, additional tests reveal that the positive effect of foreign directors on corporate environmental performance is more pronounced for those from the countries (regions) with shorter time zone difference, stronger investor protection and better performance in environmental responsibilities. Journal: China Journal of Accounting Studies Pages: 495-527 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/21697213.2021.1966175 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1966175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:8:y:2020:i:4:p:495-527 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1977890_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zheng Huo Author-X-Name-First: Zheng Author-X-Name-Last: Huo Author-Name: Junsheng Zhang Author-X-Name-First: Junsheng Author-X-Name-Last: Zhang Author-Name: Mingming Huang Author-X-Name-First: Mingming Author-X-Name-Last: Huang Title: The Motivation and Consequences of Golden Parachute Provisions: A Case Study of TBEA Co., Ltd. Abstract: The paper examines the motivation and consequences of Golden Parachute (GP) contracts in the context of TBEA, a Chinese company whose GP payment was 1,000 times executive annual salary and which rescinded its GP provision in 2019. We find that for TBEA, whose ownership is dispersed, anti-takeover was the main motivation for the adoption of GPs, and that managerial power was the key factor in designing GPs with payment of high monetary value. We also find that such GPs may induce higher excess executive compensation, lower shareholder participation, and reduce firm value, and that market reaction to the rescinding of GPs is positive. These results show that emerging capital markets should beware of the negative effect of GPs on firm value. Journal: China Journal of Accounting Studies Pages: 54-80 Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1977890 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1977890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:54-80 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1977892_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xuehang Yu Author-X-Name-First: Xuehang Author-X-Name-Last: Yu Author-Name: Junxiong Fang Author-X-Name-First: Junxiong Author-X-Name-Last: Fang Title: Discretionary stock halt and analyst forecast Abstract: The increasing number of discretionary stock halts, has attracted the attention of regulatory authorities and scholars. They have also become a significant obstacle to the internationalization of China's capital market. This article systematically examines the impact of discretionary halts on the information environment from the perspective of analysts. The study finds that discretionary halts lead to a decrease in the number of analysts following, a decline in analysts' forecast accuracy, and an increase in analysts' forecast dispersion. Further research finds that reducing the amount and the decline of the quality of information disclosure are two crucial channels for discretionary stock halts deteriorating the information environment. Cross-sectional tests show that the impact of discretionary stock halts is more pronounced in samples with lower investor protection and higher agency costs. Above results indicate that the discretionary halt deteriorates the company's information environment, which provides important policy implications for China's capital market reform. Journal: China Journal of Accounting Studies Pages: 24-53 Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1977892 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1977892 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:24-53 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1977893_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yang Han Author-X-Name-First: Yang Author-X-Name-Last: Han Author-Name: Xi Wu Author-X-Name-First: Xi Author-X-Name-Last: Wu Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Title: Killing two birds with one stone? Auditor choice in merger & acquisitions and subsequent auditor assurance quality Abstract: Listed companies commonly appoint their incumbent annual auditors to audit a target company during a merger and acquisition (M&A). However, some companies choose an alternative auditor to perform the M&A audit. To understand the consequences of this apparently unconventional auditor choice, we argue that the acquiring company introduces competition between the M&A auditor and the annual auditor, which makes the M&A auditor incentivised to compete for the annual audit engagement, whereas the annual auditor is motivated to protect her business from rivalry. This game facilitates corporate management to gain favourable treatment from auditors both in the annual audit and in the performance commitment attestation for post-M&A periods. Using data from Chinese M&A market from 2008 to 2017, we find evidence consistent with our hypotheses. Our findings suggest that an audit client is capable of compromising external auditors’ monitoring by employing multiple auditors on various assurance services. Journal: China Journal of Accounting Studies Pages: 1-23 Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1977893 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1977893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1927769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xueyan Dong Author-X-Name-First: Xueyan Author-X-Name-Last: Dong Author-Name: Yijing Cui Author-X-Name-First: Yijing Author-X-Name-Last: Cui Author-Name: Jingyu Gao Author-X-Name-First: Jingyu Author-X-Name-Last: Gao Title: Strategic deviance and auditor selection Abstract: Using data of Chinese A-share non-financial listed companies spanning years 2003–2018, we examine whether a firm’s business strategy that deviates from industry conventions influences corporate governance mechanisms, particularly the probability of choosing high-quality external auditors. We document a significantly positive correlation between a firm’s strategic deviance and high-quality auditor engagement. The exacerbation of agency conflict is an important driver for firms with strategic deviance to hire high-quality auditors. Moreover, we find evidence that hiring Big 4 auditors can curb earnings management and capital occupation of major shareholders in firms with a deviant strategy. We conclude that strategically deviant firms hire high-quality auditors due to agency conflicts. Journal: China Journal of Accounting Studies Pages: 81-112 Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1927769 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1927769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:81-112 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1997370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 142-142 Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1997370 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1997370 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:142-142 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1927770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongjian Wang Author-X-Name-First: Hongjian Author-X-Name-Last: Wang Author-Name: Song Chen Author-X-Name-First: Song Author-X-Name-Last: Chen Title: Credit availability, signalling and auditor choice Abstract: Taken the cancellation of the upper limit of loan interest rates as a quasinatural experiment and based on the signal theory of auditor demand, this paper investigates how the improvement of credit availability affects the choice of auditors. Results show that, compared with low-risk enterprises, high-risk enterprises tend to choose high-quality audits because of the increased loan availability after the liberalisation of the loan interest rate ceiling, and this tendency is more pronounced in the corporations with higher financing constraints. The above results are still valid after a series of robustness tests. Further analysis reveals that high-risk companies choosing high-quality auditors do obtain more long-term loans after the loan interest rate ceiling was lifted. This study identifies the causal relationship between credit availability and auditor choice, and also provides empirical evidence for the signal function of high-quality auditors in China’s credit market. Journal: China Journal of Accounting Studies Pages: 113-141 Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1927770 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1927770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:113-141 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1998870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2020 Journal: China Journal of Accounting Studies Pages: x-xiii Issue: 1 Volume: 9 Year: 2021 Month: 01 X-DOI: 10.1080/21697213.2021.1998870 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1998870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:1:p:x-xiii Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1980956_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Honghui Zhang Author-X-Name-First: Honghui Author-X-Name-Last: Zhang Author-Name: Haojun Xiong Author-X-Name-First: Haojun Author-X-Name-Last: Xiong Author-Name: Linyi Zhang Author-X-Name-First: Linyi Author-X-Name-Last: Zhang Title: The downside of absence of controlling shareholders: evidence from management trading abnormal return Abstract: More and more Chinese-listed companies report the loss of controlling shareholders in recent years. This seems to be a boon to the Chinese capital market, which is plagued by tunnelling from controlling shareholders. Employing the absence of controlling shareholders as a novel event, this study analyzes its influence on management rent-seeking behaviour, as measured by management trading abnormal return. The results show that absence of controlling shareholders will lead to higher abnormal returns for management on share transactions. A channel analysis shows that information asymmetry and equity incentives are two moderators in the association between absence of controlling shareholders and management trading abnormal return. The results also show that the effect is less pronounced for companies with a high equity concentration and a high level of analysts following, and for companies facing a highly developed financial environment. Thus, although the type-II agency problem disappears when companies lose controlling shareholders, the type-I agency problem could be worse. Journal: China Journal of Accounting Studies Pages: 221-246 Issue: 2 Volume: 9 Year: 2021 Month: 04 X-DOI: 10.1080/21697213.2021.1980956 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1980956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:2:p:221-246 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1992938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liguang Zhang Author-X-Name-First: Liguang Author-X-Name-Last: Zhang Author-Name: Liao Peng Author-X-Name-First: Liao Author-X-Name-Last: Peng Author-Name: Kang He Author-X-Name-First: Kang Author-X-Name-Last: He Title: Does air pollution affect executive pay? Abstract: Senior talents are the source and driving force of sustained economic growth, so attracting and retaining senior talents is crucial to local economic development. From the perspective of senior talents – executives, using a sample of publicly traded A-share listed companies during 2005–2018 in China, we examine the impact of air pollution on executive compensation. We find that air pollution level is significantly and positively correlated with executive compensation. This effect is more prominent for firms have less bargaining power, firms where executives have more bargaining power and executives are younger. Further studies show that air pollution inhibits the accumulation of local executive talent. Finally, adjusting executive compensation according to air pollution levels can improve future firm performance. All in all, from the perspective of listed firms’ decision makers, this paper enriches and expands the literature about economic outcomes of air pollution and further reveals the micro mechanism of air pollution negatively influencing macro economic development, providing the empirical evidence for local government policy making of talent introduction, improving the environmental governance capacity and finally promoting high quality economic development. Journal: China Journal of Accounting Studies Pages: 247-267 Issue: 2 Volume: 9 Year: 2021 Month: 04 X-DOI: 10.1080/21697213.2021.1992938 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1992938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:2:p:247-267 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1992937_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bo Peng Author-X-Name-First: Bo Author-X-Name-Last: Peng Author-Name: Chen He Author-X-Name-First: Chen Author-X-Name-Last: He Title: Does ‘Internet+Sales’ business model help managers improve earnings forecast quality? – Based on the data of e-commerce platforms Abstract: Based on the data of firms opening stores on e-commerce platforms and DID regression model, we investigate the impacts of ‘Internet+Sales’ on management forecasts. In the view of accounting information transmission efficiency, ‘Internet+Sales’ can upgrade firms’ information technology and enhance managers’ ability to obtain earnings information, which help improve the timeliness of forecasts. However, in the view of sales uncertainty, ‘Internet+Sales’ will impact firms’ traditional sales activity and raise the difficulty for managers to estimate future earnings performance, which causes a decrease in the accuracy of forecasts. Moreover, we also find a decrease in customer concentration in these firms, and a better performance in forecast accuracy in the e-commerce platforms with less sales uncertainty policy, indicating that uncertainty can affect forecast accuracy. This paper provides specific evidence on how ‘Internet+’ affects management disclosure, and can help stakeholders have a better understanding of ‘Internet+Sales’ business model. Journal: China Journal of Accounting Studies Pages: 268-288 Issue: 2 Volume: 9 Year: 2021 Month: 04 X-DOI: 10.1080/21697213.2021.1992937 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1992937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:2:p:268-288 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1992936_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Wang Author-X-Name-First: Yan Author-X-Name-Last: Wang Author-Name: Tao Li Author-X-Name-First: Tao Author-X-Name-Last: Li Author-Name: Deli Wang Author-X-Name-First: Deli Author-X-Name-Last: Wang Author-Name: Kun Liu Author-X-Name-First: Kun Author-X-Name-Last: Liu Title: Has damage from goodwill impairment grown in China? Analysis and response Abstract: From the perspective of high-quality acquirers (with generated goodwill), this study analyses the conflicting issues in the formation, recognition and subsequent measurement of goodwill and finds that good enterprises are not willing to make a timely provision for goodwill impairment, and the reaction of investors implies a low value relevance of goodwill impairment disclosure. Further, trends in the market-to-book ratio indicate that the market has absorbed goodwill impairment information before its disclosure. This paper finds that listed companies may abuse goodwill and goodwill impairment standards by delaying the recognition and disclosure of goodwill impairment, which could lead to a sharp decline in the companies’ future performance. Overall, this study tends to provide some useful suggestions about how to disclose and refine goodwill impairment information under the current goodwill framework and offer suggestions to improve impairment testing, mergers and acquisitions (M&A) transactions, off-balance sheet information disclosure and corporate governance. Journal: China Journal of Accounting Studies Pages: 168-194 Issue: 2 Volume: 9 Year: 2021 Month: 04 X-DOI: 10.1080/21697213.2021.1992936 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1992936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:2:p:168-194 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1980955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuang Xue Author-X-Name-First: Shuang Author-X-Name-Last: Xue Author-Name: Peiji Xu Author-X-Name-First: Peiji Author-X-Name-Last: Xu Title: Can analysts see through goodwill bubbles? The impact of goodwill on analysts’ forecasts Abstract: In recent years, the amount of goodwill has been increased dramatically and become one of the difficult problems in academic and accounting practice. This paper focuses on the impact of goodwill on analysts’ forecasts. It is found that goodwill can increase the optimism and decrease the accuracy of analysts’ forecasts because of its low quality. Goodwill recognised initially in bull market or from the M&A without founder-chairman or founder-CEO contains more bubbles and tends to be lower quality. The more the bubbles, the larger the optimism or the errors of analysts’ forecasts. In order to exclude the alternative explanations, we also, respectively, take cross-sectional tests to control the number of analysts, the number of star analysts, and whether there is M&A in year t, and then further examine the dynamic changes between goodwill and analysts’ forecasts. Journal: China Journal of Accounting Studies Pages: 195-220 Issue: 2 Volume: 9 Year: 2021 Month: 04 X-DOI: 10.1080/21697213.2021.1980955 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1980955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:2:p:195-220 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_1980954_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tingting Zhang Author-X-Name-First: Tingting Author-X-Name-Last: Zhang Author-Name: Xinmin Zhang Author-X-Name-First: Xinmin Author-X-Name-Last: Zhang Author-Name: Daoguang Yang Author-X-Name-First: Daoguang Author-X-Name-Last: Yang Title: Does industrial policy suppress corporate tax avoidance? —— a study on the perspective of provincial industrial policy Abstract: Will industrial policy affect corporate tax avoidance? Based on China’s listed corporations which are in the current stage of industrial transformation and upgrading, this paper investigates how the provincial industrial policy impact corporate tax avoidance. The results show that provincial industrial policy can suppress corporate’s incentive to avoid tax and this relationship is stronger in non-SOE group. Further study finds that the release of provincial policy enhances the prospect of influenced industries, leading the improvement of firm performance, helping firms obtain more government subsidies and bank loans and finally suppress corporate tax avoidance. On the other hand, industrial policy is a crucial channel through which listed firms can build political connections with local government. To maintain the relationship with local government, the affected firms are willing to suppress corporate tax avoidance. Journal: China Journal of Accounting Studies Pages: 143-167 Issue: 2 Volume: 9 Year: 2021 Month: 04 X-DOI: 10.1080/21697213.2021.1980954 File-URL: http://hdl.handle.net/10.1080/21697213.2021.1980954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:2:p:143-167 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2009175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jing Du Author-X-Name-First: Jing Author-X-Name-Last: Du Author-Name: Wanfu Li Author-X-Name-First: Wanfu Author-X-Name-Last: Li Author-Name: Bin Lin Author-X-Name-First: Bin Author-X-Name-Last: Lin Author-Name: Donghui Wu Author-X-Name-First: Donghui Author-X-Name-Last: Wu Title: Financial ecological environment and internal audit outsourcing: evidence from survey in China Abstract: This paper examines the determinants of internal audit outsourcing from the macro perspective of financial ecological environment. We find that in regions with a poor financial ecological environment, firms are more likely to outsource internal audit and more inclined to outsource to other service providers than to accounting firms that provide financial report audit services for them. Furthermore, those firms with high financing constraints and non-state-owned firms are more likely to outsource internal audit in poor financial ecological environments. Firms outsourcing internal audit in poor financial ecological environments will have low debt financing costs. These results suggest firms in weak financial ecological environments tend to use internal audit outsourcing to enhance investor confidence and reduce financing costs. This paper helps expand the literature related to the determinants of internal audit outsourcing from a macro perspective, and provide a reference for improving the resource-allocation efficiency of the governance-oriented internal audit. Journal: China Journal of Accounting Studies Pages: 289-310 Issue: 3 Volume: 9 Year: 2021 Month: 07 X-DOI: 10.1080/21697213.2021.2009175 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2009175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:3:p:289-310 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2009177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiangyan Shi Author-X-Name-First: Xiangyan Author-X-Name-Last: Shi Author-Name: Danlu Bu Author-X-Name-First: Danlu Author-X-Name-Last: Bu Author-Name: Caihong Wen Author-X-Name-First: Caihong Author-X-Name-Last: Wen Author-Name: Zong Lan Author-X-Name-First: Zong Author-X-Name-Last: Lan Title: Financial background of controlling shareholder and corporate financialization Abstract: This paper studies the effect of the controlling shareholder’s financial background on the corporate financialization. We find that controlling shareholder’s financial background has a significant positive impact on corporate financialization, and the positive impact is more obvious in credit advantage firms and firms with poor institutional environment and real investment environment. Firms with financial controlling shareholders will increase long-term value reserving financial investment, and firms’ financialization trend with lower financing constraints is more sensitive to controlling shareholders’ financial background, suggesting that speculating is the essential motivation of firms’ financialization, rather than precautionary saving. The mechanism test shows that controlling shareholder’s financial background mainly promotes corporate financialization by increasing the financial long-term equity investments at the parent company level. Finally, there is an inverted U relationship between corporate financialization and investment efficiency, and the marginal effect of corporate financialization on investment efficiency is greater in firms with financial shareholders. Journal: China Journal of Accounting Studies Pages: 383-407 Issue: 3 Volume: 9 Year: 2021 Month: 07 X-DOI: 10.1080/21697213.2021.2009177 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2009177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:3:p:383-407 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2009178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiong Wang Author-X-Name-First: Qiong Author-X-Name-Last: Wang Author-Name: Kemin Wang Author-X-Name-First: Kemin Author-X-Name-Last: Wang Title: Does high-speed rail stimulate shareholder activism by small investors in China? Abstract: This study investigates the effects of high-speed rail (HSR) introduction in China on small investors’ on-site participation in shareholders’ general meetings, which is used to measure the ‘inverse distance–participation syndrome’. We find that HSR introductionhas a significantly positive effect on small investors’ on-site attendance. The poorer the transportation infrastructure connecting other cities before HSR introduction, the shorter the distance between HSR station and the firm’s headquarters after HSR introduction, and the more nonlocal investors the firm has, the higher the attendance rate. Small shareholder activism that arises with HSR introduction results in a higher likelihood of proposal rejection, fewer tunnelling by large shareholders, and less earnings manipulation. Overall, our results show that HSR introduction reduces monitoring costs for small shareholders and increases their on-site participation. Our findings provide important implications for policymakers on encouraging small shareholder activism. Journal: China Journal of Accounting Studies Pages: 408-431 Issue: 3 Volume: 9 Year: 2021 Month: 07 X-DOI: 10.1080/21697213.2021.2009178 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2009178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:3:p:408-431 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2009179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuwei Sun Author-X-Name-First: Shuwei Author-X-Name-Last: Sun Author-Name: Tusheng Xiao Author-X-Name-First: Tusheng Author-X-Name-Last: Xiao Author-Name: Yulong Yang Author-X-Name-First: Yulong Author-X-Name-Last: Yang Author-Name: Xincheng Wang Author-X-Name-First: Xincheng Author-X-Name-Last: Wang Title: Inter-regional M&As, home bias and the post-merger performance Abstract: The under-performance of mergers and acquisitions (M&As) resulting from impairment of goodwill is of great interest to regulators and investors. This study investigates the performance of M&As from the perspective of home bias. The results indicate that (1) Post-merger performance is worse when purchased companies are in high-level executives’ hometowns. (2) When located in the executives’ hometown, listed companies pay higher premiums, and further loss of goodwill occurs in the following years. Integration efficiency after M&As is lower, as reflected in the higher degree of excess employees. (3) Cross-sectional analyses indicate that M&A under-performance only occurs when the province has a low level of market development, listed companies are non-state-owned enterprises, or listed companies’ executives are older. (4) Interactive effect test results suggest that fund holding, analyst following and media coverage can alleviate the negative impact of home bias on long-term performance. Journal: China Journal of Accounting Studies Pages: 360-382 Issue: 3 Volume: 9 Year: 2021 Month: 07 X-DOI: 10.1080/21697213.2021.2009179 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2009179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:3:p:360-382 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2009180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiongyuan Wang Author-X-Name-First: Xiongyuan Author-X-Name-Last: Wang Author-Name: Luofan Bu Author-X-Name-First: Luofan Author-X-Name-Last: Bu Author-Name: Xuan Peng Author-X-Name-First: Xuan Author-X-Name-Last: Peng Title: Internet of things adoption, earnings management, and resource allocation efficiency Abstract: This study aims at addressing the economic consequences of the adoption of the Internet of Things (IoT) in China. As the fundamental technology for the next-generation information technology, IoT is supposed to have the most profound and comprehensive influence on both business operation and accounting information environment. By using a difference-in-differences method, our findings focusing on earnings management activities in China-listed firms around the adoption of IoT confirm the conjecture that such technology effectively deters accrual-based and real earnings management. The results are also robust to dynamic analysis, instrumental variable approach, PSM analysis, placebo tests and other robustness tests. Furthermore, we also document that the reduction in real earnings management due to IoT adoption has positive implications on the capital market, financing and investment activities and long-term operational efficiency. Taken together, we reveal the promising prospects of IoT adoption on corporate accounting information and establish the association between information technology and efficiency of resource allocation. Journal: China Journal of Accounting Studies Pages: 333-359 Issue: 3 Volume: 9 Year: 2021 Month: 07 X-DOI: 10.1080/21697213.2021.2009180 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2009180 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:3:p:333-359 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2009176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liangliang Wang Author-X-Name-First: Liangliang Author-X-Name-Last: Wang Author-Name: Haiyang Zhang Author-X-Name-First: Haiyang Author-X-Name-Last: Zhang Author-Name: Lu Zhang Author-X-Name-First: Lu Author-X-Name-Last: Zhang Author-Name: Xiru Guo Author-X-Name-First: Xiru Author-X-Name-Last: Guo Title: Dividend from subsidiaries and the agency cost of business groups Abstract: The subsidiary’s profit distribution results in the cash transfer from the subsidiary to the parent company. We investigate the effect of this cash transfer on the business group’s agency cost. Using the sample of A-share listed companies in China from 2006 to 2017, we find that the profits distributed by subsidiaries lead to the decrease of the agency costs of the business group as a whole. The channel analysis reveals that the profits are transferred to parent company whose governance efficiency is relatively higher and the total free cash flows are reduced. Further research finds that the agency cost reduced effect is more significant in business groups with higher subsidiary business importance and subsidiary debt financing importance, and in groups with lower growth of the subsidiary. Finally, we report that the subsidiary’s profit distribution has value-added effect. This paper generates new insights into the “black box” of the internal operation of business groups and provides comprehensive implications for policy makers. Journal: China Journal of Accounting Studies Pages: 311-332 Issue: 3 Volume: 9 Year: 2021 Month: 07 X-DOI: 10.1080/21697213.2021.2009176 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2009176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:3:p:311-332 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082718_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Quan Author-X-Name-First: Yi Author-X-Name-Last: Quan Author-Name: Cong Zhou Author-X-Name-First: Cong Author-X-Name-Last: Zhou Author-Name: Rongjiang Bao Author-X-Name-First: Rongjiang Author-X-Name-Last: Bao Author-Name: Li Long Author-X-Name-First: Li Author-X-Name-Last: Long Title: Do board secretaries with financial expertise reduce regulatory inquiries? Empirical evidence based on the China stock exchange’s annual report comment letter Abstract: The number of annual report comment letters (ARCLs) has been increasing over the years with the stock exchanges continuously strengthening ex-post supervision. Focusing on the financial expertise of board secretaries, who are directly responsible for disclosure, we thoroughly explore whether such expertise can impact regulatory inquiries. We document that financial expert board secretaries significantly reduces the likelihood, frequency, and characters of firms’ receipt of ARCLs and the likelihood of firms’ delay of responses to ARCLs. Further, we find that the influence of financial expert board secretaries on ARCLs mainly exists in the non-state-owned enterprises, enterprises with a poor governance environment, and enterprises in which board secretaries enjoy a higher organizational status. The mechanism test results show that financial expert board secretaries can reduce the accrual-based earnings management. Overall, this research reveals board secretaries’ disciplinary effects on regulatory inquiries and provides detailed analysis helping understand board secretaries’ role in disclosure. Journal: China Journal of Accounting Studies Pages: 571-592 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/21697213.2022.2082718 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082718 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:571-592 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2023725_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yunlong Ye Author-X-Name-First: Yunlong Author-X-Name-Last: Ye Author-Name: Song Chen Author-X-Name-First: Song Author-X-Name-Last: Chen Author-Name: Yuqiang Cao Author-X-Name-First: Yuqiang Author-X-Name-Last: Cao Author-Name: Hongjian Wang Author-X-Name-First: Hongjian Author-X-Name-Last: Wang Title: The cost shock, margin gap and enterprise financialization: An exogenous shock based on minimum wage Abstract: This study examines the exogenous institutional impact of minimum wage policy on enterprise financialization in China. Empirical results show that an increased minimum wage significantly promotes the financialization of real enterprises. Moreover, the impact is more pronounced in enterprises characterised by a more significant profit margin gap between tangible and financial assets and higher degrees of labour-intensiveness. Further tests reveal that the promotional effect of the minimum wage on the financialization of labour-intensive enterprises tends to be more substantial under the following circumstances: (i) a smaller gap exists between an enterprise’s average wage and the local minimum wage; (ii) an enterprise finds it more challenging to pass on costs to the market; (iii) following the implementation of the Labour Contract Law. Further investigation indicates that raising the minimum wage exacerbates the adverse effects of enterprise financialization on corporate value. Journal: China Journal of Accounting Studies Pages: 490-525 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/21697213.2021.2023725 File-URL: http://hdl.handle.net/10.1080/21697213.2021.2023725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:490-525 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Bai Author-X-Name-First: Jun Author-X-Name-Last: Bai Author-Name: Chuang Li Author-X-Name-First: Chuang Author-X-Name-Last: Li Author-Name: Shasha Li Author-X-Name-First: Shasha Author-X-Name-Last: Li Author-Name: Weiting Luo Author-X-Name-First: Weiting Author-X-Name-Last: Luo Title: Compensation regulation and political promotion of executives of state-owned enterprises——Quasi-natural experiment based on the reform of compensation regulation in China Abstract: Using a sample of listed state-owned enterprises in China from 2013 to 2018, this paper focuses on the impacts of compensation regulation policy on the changes of incentive mode for SOE executives. We find that after the policy, the compensation incentive channel for highly-paid executives has been replaced by political promotion as an alternative incentive mechanism. Further analysis shows that ingratiatory behaviour has become the main channel for SOE executives to seek promotion after the policy. Our results provide support for the relationship hypothesis relating to the political promotion of SOE executives, and such effects are more pronounced within younger SOE executives with lower enterprise level and marketisation degree. Finally, we find that the existence of alternative benefit acquisition channels such as equity incentive, perquisite consumption and the degree of mixed ownership reform of SOE has weakened the relationship between compensation regulation and political promotion of SOE executives. Journal: China Journal of Accounting Studies Pages: 549-570 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/21697213.2022.2082719 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:549-570 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2078271_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Changli Zeng Author-X-Name-First: Changli Author-X-Name-Last: Zeng Author-Name: Jiangtao Li Author-X-Name-First: Jiangtao Author-X-Name-Last: Li Author-Name: Haoran Xu Author-X-Name-First: Haoran Author-X-Name-Last: Xu Author-Name: Mian Zhang Author-X-Name-First: Mian Author-X-Name-Last: Zhang Title: The power of belief: party organization construction of accounting firms and audit quality Abstract: We examine the impact of party organisation construction of accounting firms on audit quality. We find that although there is no relationship between the party membership status of auditors and audit quality, the audit quality of party-member auditors significantly improves after accounting firms strengthen party organisation construction. Additional analyses show that the positive impact of auditor party membership on audit quality does not generate a contagious effect in the presence of party organisation construction. Moreover, cross-section results show that the impact of party organisation construction on audit quality is more pronounced in Non-Big4 audit firms, and in audit firms having a higher proportion of party-member partners/employees. Finally, we find that party organisation construction of accounting firms plays a more significant role in improving audit quality in state-owned firms. We believe our paper to be the first to investigate the governance role of party organisation construction in accounting firms. Journal: China Journal of Accounting Studies Pages: 433-468 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/21697213.2022.2078271 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2078271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:433-468 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2053375_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhi Jin Author-X-Name-First: Zhi Author-X-Name-Last: Jin Author-Name: Chenghao Huang Author-X-Name-First: Chenghao Author-X-Name-Last: Huang Title: Tax enforcement and corporate donations: evidence from Chinese ‘Golden Tax Phase III’ Abstract: Using the implementation of “Golden Tax Phase III” as a quasi-natural experiment, we take the difference-in-differences (DID) method to examine how changes in taxation technology affect firm donations. Specifically, “Golden Tax Phase III” has reduced the donation level of private enterprises (−21.6%). Moreover, the treatment effect is particularly pronounced in regions with low taxation capacity and enterprises with high tax avoidance. Additional tests show that enhanced tax enforcement decreases rent-seeking donations rather than squeezes out market-oriented donations, and the reduction of donations is not due to the deterioration of cash flow capacity. Overall, these results suggest that the improvement of taxation technology will restrict rent-seeking behaviour and regulate the corporate social responsibility activities of the enterprises. This study not only enriches the relevant research on tax enforcement and corporate social responsibility but also emphasises the significant impact of information infrastructure construction. Journal: China Journal of Accounting Studies Pages: 526-548 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/21697213.2022.2053375 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2053375 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:526-548 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2082717_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Author-Name: Yanfeng Jiang Author-X-Name-First: Yanfeng Author-X-Name-Last: Jiang Author-Name: Junli Yu Author-X-Name-First: Junli Author-X-Name-Last: Yu Author-Name: Wei Xu Author-X-Name-First: Wei Author-X-Name-Last: Xu Title: Large shareholders’ tunneling and stock price crash risk Abstract: Tunnelling by large shareholders is a problem representative of ownership concentration. Large shareholders may interfere with a firm’s information disclosure to support their tunnelling behaviour, causing a high stock price crash risk. Using listed companies in China from 2001 to 2019 as a sample, we find that more severe tunnelling can lead to a higher risk of stock price crashes. Moreover, we investigate potential factors such as internal control, operational performance, and split-share reforms, that may affect the aforementioned relationship. A high level of internal control and good operational performance will weaken the relationship, and the relationship is stronger before split-share reforms. The findings of this study contribute to a better understanding of the relationship given China’s institutional background and better investor protection. Journal: China Journal of Accounting Studies Pages: 469-489 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/21697213.2022.2082717 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2082717 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:469-489 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2202879_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Reviewers in 2022 Journal: China Journal of Accounting Studies Pages: xi-xii Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2202879 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2202879 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:xi-xii Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143687_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Xu Author-X-Name-First: Xin Author-X-Name-Last: Xu Author-Name: Fengying Ye Author-X-Name-First: Fengying Author-X-Name-Last: Ye Author-Name: Yasheng Chen Author-X-Name-First: Yasheng Author-X-Name-Last: Chen Title: The joint effect of investors’ trait scepticism and the familiarity and readability of key audit matters on the communicative value of audit reports Abstract: Accounting studies have inconsistent conclusions about whether including Key Audit Matters (KAM) improves the communicative value of audit reports. We experimentally investigate the joint effect of investors’ trait scepticism and the familiarity and readability of KAM on the communicative value of audit reports. Our results indicate that KAM readability enhances the communicative value of audit reports for less (more) sceptical investors when they are less (more) familiar with the issues discussed in the KAM. Additionally, using an eye-tracking device, we find that the communicative value of audit reports for nonprofessional investors depends on their visual attention paid to the KAM. These findings show that the positive effect of including KAM in audit reports is contingent on the user’s trait scepticism and the content and form of the KAM. Our conclusions should be of interest to regulators and auditors when considering what and how to communicate to different financial statement users. Journal: China Journal of Accounting Studies Pages: 1-28 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2022.2143687 File-URL: http://hdl.handle.net/10.1080/21697213.2022.2143687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:1-28 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2148952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shasha Liu Author-X-Name-First: Shasha Author-X-Name-Last: Liu Author-Name: Huixian Zhao Author-X-Name-First: Huixian Author-X-Name-Last: Zhao Author-Name: Gaowen Kong Author-X-Name-First: Gaowen Author-X-Name-Last: Kong Author-Name: Dongmin Kong Author-X-Name-First: Dongmin Author-X-Name-Last: Kong Title: Can the county to district reform in China restrain corporate earnings management? From the perspective of regional local protection Abstract: Under the strategic background of regional coordinated development, the County to District can remove administrative barriers and reduce local protection. Based on the matching data of Chinese A-share listed companies from 2000 to 2018 and the County to District Reforms, this paper empirically explores the influence of County to District Reforms on earnings management. We find the County to District Reform can effectively reduce earnings management, especially in areas with high local protection. Further mechanism analysis shows the County to District Reforms reduce local protection by increasing credit availability for enterprises, and ultimately restrain earnings management. Additional analysis shows the County to District Reforms increase the bank loans of enterprises in areas with higher local protection. This paper deepens the understanding of the County to District Reforms and enriches the literature on how government actions can affect corporate governance. Journal: China Journal of Accounting Studies Pages: 134-158 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2148952 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2148952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:134-158 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2148944_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiaoling Fang Author-X-Name-First: Qiaoling Author-X-Name-Last: Fang Author-Name: Nutao Yu Author-X-Name-First: Nutao Author-X-Name-Last: Yu Author-Name: Hui Xu Author-X-Name-First: Hui Author-X-Name-Last: Xu Title: Governance effects of digital transformation: from the perspective of accounting quality Abstract: With the rapid development of digital economy and technology in China, we research on whether corporate digital transformation in traditional industries can improve accounting quality as well as corporate governance. Our findings suggest that, firms proceeding more digital transformation have lower degree of earnings management and higher degree of accounting qualities. Digital transformation can improve accounting quality by reducing three types of agency costs. Specifically, digital transformation can improve corporate internal control, as well as attract more analyst tracking, to improve accounting qualities. Additional analysis suggests that, the governance effects of corporate digital transformation are more prevails in non-state firms, or weak information quality firms, as well as in long-term oriented firms. Corporate digital transformation can decrease real earnings management and stock price synchrony, increase accounting quality, reveals a positive governance effect. Journal: China Journal of Accounting Studies Pages: 77-107 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2148944 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2148944 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:77-107 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143691_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chao Dou Author-X-Name-First: Chao Author-X-Name-Last: Dou Author-Name: Xue Yang Author-X-Name-First: Xue Author-X-Name-Last: Yang Author-Name: Xuejin Bai Author-X-Name-First: Xuejin Author-X-Name-Last: Bai Author-Name: Rui Sun Author-X-Name-First: Rui Author-X-Name-Last: Sun Title: Microblog publicity and IPO underpricing Abstract: Based on many cases of publicity using social media in the market, this paper empirically examines the damage of microblog publicity to market efficiency by using the sample of IPO companies. The results show that the companies posting microblogs during the IPO publicity period have higher IPO underpricing, and the more the number of microblogs, the richer the content, the higher the proportion of microblogs in the operating activities, the higher the IPO underpricing. These relationships are stronger in the enterprises with higher degree of information asymmetry and management valuing social media more. Furthermore, microblogs posted during the IPO period mainly influence investor sentiment, especially small investors. In addition, the short-term stock market performance of the companies posting microblogs is significantly worse. This paper provides a theoretical basis for standardizing the information disclosure behavior of listed companies using social media. Journal: China Journal of Accounting Studies Pages: 184-205 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2143691 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2143691 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:184-205 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2148955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Minying Cheng Author-X-Name-First: Minying Author-X-Name-Last: Cheng Author-Name: Menglu Chen Author-X-Name-First: Menglu Author-X-Name-Last: Chen Author-Name: Jun Liu Author-X-Name-First: Jun Author-X-Name-Last: Liu Title: Confucianism and the altruistic behaviour in the succession of family firms: evidence from asset write-downs Abstract: This paper explores how Confucianism influences the altruistic behaviour during family firm successions. Using a sample of Chinese listed family firms which have transferred the power to family successors during 2005-2018, we find that family firms deeply influenced by Confucianism intend to take a big bath via asset write-downs in the year before the succession. Confucianism has stronger influence on altruism when the successor have closer blood relationship with the founder, when the successor is less educated, when the family have weaker control over the firm or when the firm is in a lower market position. When the board of directors is more independent or the auditor has higher reputation, the influence of Confucianism is weaker. Family firms with more asset write-downs have better short-term performance after the succession, but lower business reform and R&D inputs. These findings enrich the research on Confucianism and corporate governance of family firms. Journal: China Journal of Accounting Studies Pages: 29-54 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2148955 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2148955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:29-54 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2143689_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xing Liu Author-X-Name-First: Xing Author-X-Name-Last: Liu Author-Name: Xiaoyi Ren Author-X-Name-First: Xiaoyi Author-X-Name-Last: Ren Title: Does cash dividend smoothing affect the wealth management products purchased by listed companies? Abstract: Using the regulatory policy on cash dividends implemented in 2013 as the research context, this study develops a difference-in-difference (DID) model using the data of Chinese A-share non-financial listed companies from 2011–2019, and found that cash dividend smoothing reduces the wealth management products (WMPs) purchased by companies. Channel tests demonstrated that cash dividend smoothing reduces the company’s WMPs by increasing the financial leverage and attracting independent-type institutional investors to exert debt governance effect and institutional investor governance effect. Additional analysis found that cash dividend smoothing has a greater effect on WMPs when there are serious managerial agency problems within the firm, the nature of ownership is private, and in regions with dense branches of financial institutions. More importantly, cash dividend smoothing was found to alleviate the crowding-out effect of WMPs on industrial investment and help return the firms’ capital to industrial operations. Journal: China Journal of Accounting Studies Pages: 159-183 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2143689 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2143689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:159-183 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2175126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Notice of duplicate publication: Microblog Publicity and IPO Underpricing Journal: China Journal of Accounting Studies Pages: x-x Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2175126 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2175126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:x-x Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2148949_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dongdong Li Author-X-Name-First: Dongdong Author-X-Name-Last: Li Author-Name: Haijie Huang Author-X-Name-First: Haijie Author-X-Name-Last: Huang Author-Name: Kemin Wang Author-X-Name-First: Kemin Author-X-Name-Last: Wang Title: Information technology infrastructure and earnings management strategy: evidence from a quasi-natural experiment Abstract: Taking the ‘Broadband China’ programme as a quasi-natural experiment, we intend to explore the effect of information technology infrastructure (Hereinafter, ITI) on earnings management strategy. Our results show that with the office location city selected as the pilot city, the firm will strategically reduce the accrual-based earnings management and increase real earnings management. In addition, we find that ITI can reduce audit delay, decrease financial restatement, increase analyst coverage, improve analyst forecast accuracy, promote the media to release original news, and increase investor postings, which is consistent with the view that ITI can improve stakeholders’ monitoring efficiency. Cross-sectional analyses show that the impact of ITI on earnings management strategy is more pronounced for firms with low corporate governance efficiency. This study is helpful to further understand the externalities of ITI to firms’ behaviour. Journal: China Journal of Accounting Studies Pages: 108-133 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2148949 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2148949 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:108-133 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2148954_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jin-hui Luo Author-X-Name-First: Jin-hui Author-X-Name-Last: Luo Author-Name: Yue Liu Author-X-Name-First: Yue Author-X-Name-Last: Liu Author-Name: Chenchen Peng Author-X-Name-First: Chenchen Author-X-Name-Last: Peng Title: Which do second-generation heirs prefer in family firms: real investment or financial investment? Abstract: In recent years, the financial investment level of enterprises particularly family firms has increased rapidly. This phenomenon has drawn intense attention from both government regulators and academia. In this study, we argue that the second-generation succession is an important reason for family firms’ preference for financial investment. Using 9,701 firm-year observations of Chinese family listed firms from 2007 to 2018, we find that the second-generation succession has a positive effect on financial investment in family firms, while successors with professional background have less preference for financial investment. Further, the positive effect exists mainly in both preparation and epistasis stages of second-generation succession. The number of family founders’ children will enhance successors' preference for financial investment. Finally, financial investment especially long-term one reduces real investment, and damages future performance. Journal: China Journal of Accounting Studies Pages: 55-76 Issue: 1 Volume: 11 Year: 2023 Month: 01 X-DOI: 10.1080/21697213.2023.2148954 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2148954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:1:p:55-76 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fang Liu Author-X-Name-First: Fang Author-X-Name-Last: Liu Author-Name: Wen Wen Author-X-Name-First: Wen Author-X-Name-Last: Wen Title: Stock index constituent adjustments and corporate social responsibility: evidence from a quasi-natural experiment of CSI 300 index adjustments Abstract: The stock price index is a thermometer reflecting changes in the stock market, and can convey key information on capital market dynamics and trends to investors. This paper empirically investigates the impact of index adjustments on corporate social responsibility performance by employing the quasi-natural experiment of CSI 300 index adjustments. We find that index additions significantly promote corporate social responsibility performance. Mechanism analysis supports the shareholder value maximisation motivation that drives the fulfilment of corporate social responsibility. In addition, more analyst following and investor attention plays a significant mediating role in the promotion impact of stock index additions on corporate social responsibility. Further analyses show that the positive impact of the stock index additions on corporate social responsibility performance is more pronounced in industries with more competitive product market. However, index deletions do not significantly reduce corporate social responsibility performance, implying that index additions and index deletions have asymmetric effects. Journal: China Journal of Accounting Studies Pages: 300-331 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2239662 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:300-331 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239669_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yurou Liu Author-X-Name-First: Yurou Author-X-Name-Last: Liu Author-Name: Kangtao Ye Author-X-Name-First: Kangtao Author-X-Name-Last: Ye Author-Name: Jinyang Liu Author-X-Name-First: Jinyang Author-X-Name-Last: Liu Title: Major asset restructuring performance commitments and classification shifting through non-recurring items Abstract: We examine whether firms engage in classification shifting to meet performance targets during mergers and restructuring. Using a sample of listed firms that complete major asset restructuring and sign performance commitment agreements from 2008 to 2019, we find that during the commitment period, nearly 39% of firms ‘step on the line’ to achieve net income before non-recurring items, i.e., the realised performance slightly exceeds the promised performance target. Compared to control firms and non-commitment years, firms that ‘step on the line’ to meet the target are more likely to achieve this by misclassifying recurring expenses as non-operating losses. Furthermore, this effect is more pronounced in firms with larger committed amounts, firms using stock to compensate for non-performance, and firms audited by non-Big 4 auditors. Overall, our paper extends the research on incentives for classification shifting and has implications for regulators to strengthen the regulation of accounting treatment in performance commitments. Journal: China Journal of Accounting Studies Pages: 270-299 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2239669 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:270-299 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2270672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Best paper award announcement Journal: China Journal of Accounting Studies Pages: 463-463 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2270672 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2270672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:463-463 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Huan Dou Author-X-Name-First: Huan Author-X-Name-Last: Dou Author-Name: Sheng Fan Author-X-Name-First: Sheng Author-X-Name-Last: Fan Author-Name: Shangkun Liang Author-X-Name-First: Shangkun Author-X-Name-Last: Liang Title: Group Finance Companies and Dynamic Adjustment of Capital Structure of Related Listed Companies Abstract: Using the data of all A-share listed companies from 2009 to 2018, we find that the group finance companies inhibit the dynamic adjustment speed of capital structure to their optimal level of the related listed companies. The reason is that the controlling shareholders may occupy the related deposits of listed companies in the finance companies. We find that the inhibition effect is more significant when the controlling shareholders’ shareholding ratio is low and the related party transactions are high, and is weakened after the implementation of the deleveraging policy. Moreover, the inhibition effect is significant in both the upward and downward adjustment processes. In addition, the finance companies make the deviation of capital structure of listed companies larger, and this effect is mainly reflected in upward deviation. We also find that the functions of finance companies will affect the dynamic adjustment of capital structure of listed companies. Journal: China Journal of Accounting Studies Pages: 399-422 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2239671 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:399-422 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2167727_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jianying Weng Author-X-Name-First: Jianying Author-X-Name-Last: Weng Author-Name: Xingqiang Du Author-X-Name-First: Xingqiang Author-X-Name-Last: Du Author-Name: Qiao Lin Author-X-Name-First: Qiao Author-X-Name-Last: Lin Title: Does Merchant Guild Culture Reduce the Cost of Debt? Evidence from China Abstract: Using hand-collected data on merchant guild culture and a sample over 2003–2019, this study examines the effect of merchant guild culture on the cost of debt. Our findings reveal that merchant guild culture is negatively associated with the cost of debt, suggesting that merchant guild culture rooted in ancient China continuously affects corporate behaviour, builds the borrower-lender trust relationship by strengthening ethical standards of borrowers, and eventually reduces the cost of debt. The above findings are robust to a variety of sensitivity tests and using the PSM approach, two-stage IV regression procedures and regression discontinuity design to address the endogeneity. Moreover, channel tests show that merchant guild culture reduces the cost of debt by depressing the default risks. Furthermore, our main findings are more pronounced for firms in regions with lower extent of Marketisation and higher risk taking, firms with lower managerial ownership and lower ratio of independent directors. Journal: China Journal of Accounting Studies Pages: 207-246 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2167727 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2167727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:207-246 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239666_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuai Wang Author-X-Name-First: Shuai Author-X-Name-Last: Wang Author-Name: Haoran Wang Author-X-Name-First: Haoran Author-X-Name-Last: Wang Author-Name: Zejiang Zhou Author-X-Name-First: Zejiang Author-X-Name-Last: Zhou Title: Is the corporate social responsibility countercyclical? – evidence from Chinese listed companies Abstract: Whether the real performance of corporate social responsibility is related to social progress and development in the critical period of China’s economic transformation. It is crucially significant for improving social welfare and promoting high-quality economic development to clarify the relationship between the business cycle and corporate social responsibility. Choosing A-share listed companies in China’s capital market between 2011 and 2018 as a sample, we find corporate has a better social performance during business contraction, and social responsibility presents a counter-cyclical support effect, which is more obvious in non-state corporate. Public popularity, growth level and financial distress can significantly promote this counter-cyclical support effect. Further research finds that social responsibility in economic contraction can bring government subsidy, financing convenience and reputation return for corporate in the next year. Our study enriches the literature on business cycle and corporate social responsibility and promotes high-quality economic development. Journal: China Journal of Accounting Studies Pages: 332-353 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2239666 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239666 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:332-353 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2249035_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kun Luo Author-X-Name-First: Kun Author-X-Name-Last: Luo Author-Name: Tianyu Gao Author-X-Name-First: Tianyu Author-X-Name-Last: Gao Author-Name: Yixin Li Author-X-Name-First: Yixin Author-X-Name-Last: Li Title: Board authority culture, cultural diversity and corporate innovation Abstract: Culture is the core factor of corporate innovation, and board culture is the core embodiment of cultural factors in corporate governance. Board culture will have an important impact on corporate innovation, So what kind of board culture can Chinese boards build to better contribute to corporate innovation? Based on this core issue, this paper empirically explores the relationship between board authority culture, board cultural diversity and corporate innovation from the unique perspective of board culture. The results show that board authority culture is negatively related to corporate innovation; board cultural diversity can negatively regulate the relationship between board authority culture and corporate innovation, that is, the construction of diverse board culture of the Chinese board is more conducive to corporate innovation. The main reason why board authority culture inhibits corporate innovation is that board authority culture has obedience effect and inhibits corporate innovation through the path of increasing agency costs and weakening management risk preferences. Further research finds that the negative moderating effect of board culture diversity on the relationship between board authority culture and corporate innovation is more effective when the chairman has the highest authority directorship and has reputation authority but not political resource authority and organisation authority. Journal: China Journal of Accounting Studies Pages: 423-462 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2249035 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2249035 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:423-462 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yonggen Luo Author-X-Name-First: Yonggen Author-X-Name-Last: Luo Author-Name: Xiaoli Feng Author-X-Name-First: Xiaoli Author-X-Name-Last: Feng Author-Name: Jinyu Yang Author-X-Name-First: Jinyu Author-X-Name-Last: Yang Title: The real effect of innovation information disclosure: from the perspective of supplier innovation Abstract: This paper investigations the impact of customers’ innovation information discovery in management discussion and analysis (MD&A) on the innovation of suppliers. We find that the more innovation information disclosed in MD&A, the higher innovation level of the supplier, and the higher the similarity between the supplier’s patent and the customer’s patent. Further analysis shows that when the degree of information asymmetry between suppliers and customers is higher, innovation is more important to suppliers, suppliers are more dependent on customers, and customers discovery more forward-looking information, the role of customer innovation information discovery on supplier innovation investment is more obvious. The economic sequences test finds that the impact of customer innovation information discovery on supplier innovation significantly import the investment efficiency and enterprise value of enterprises. Our findings provide evidence on the influence of public textual information on the real economy from the perspective of supply chain and theoretical basis for the importance to intensify information discovery in the capital market. Journal: China Journal of Accounting Studies Pages: 354-398 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2239665 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239665 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:354-398 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2249041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Donghua Zhou Author-X-Name-First: Donghua Author-X-Name-Last: Zhou Author-Name: Yuxiu Huang Author-X-Name-First: Yuxiu Author-X-Name-Last: Huang Title: The environmental protection law and the zombie companies – evidence from a quasi-natural experimental method Abstract: This paper takes the public companies as a sample during 2012–2017, using DID analysis to test the relationship between 2015 new ‘Environmental Protection Law’ and zombie companies. The results show that the promulgation of the new environmental protection law has significantly negative with zombie enterprises. The strengthening of environmental regulation has accelerated of transformation and upgrading by assets restructuring and promoted technological innovation, which inhibiting the formation of zombie enterprises. Furthermore, this paper found that the negative relationship between environmental law and zombie companies mainly concentrate in non-state-owned enterprises, small-scale enterprises and enterprises with high regional environmental law enforcement intensity. Moreover, the promulgation of the new environmental law has a significant positive effect on corporate value in the medium and long term. This paper enriches the research literature in the field of zombie enterprises and economic consequences of environmental regulation. Journal: China Journal of Accounting Studies Pages: 247-269 Issue: 2 Volume: 11 Year: 2023 Month: 04 X-DOI: 10.1080/21697213.2023.2249041 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2249041 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:2:p:247-269 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239674_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Daoguang Yang Author-X-Name-First: Daoguang Author-X-Name-Last: Yang Author-Name: Hongling Han Author-X-Name-First: Hongling Author-X-Name-Last: Han Author-Name: Yidan Mao Author-X-Name-First: Yidan Author-X-Name-Last: Mao Author-Name: Siyi Liu Author-X-Name-First: Siyi Author-X-Name-Last: Liu Title: Special representative actions, the insurance value of audits, and investor protection: an empirical study based on the ruling against Kangmei Pharmaceutical Co. Ltd Abstract: The ruling against the Kangmei Pharmaceutical Co., Ltd’s financial fraud was the first special representative action under China’s new Securities Law, serving as a milestone in investor protection in China. Exploiting the natural experiment provided by the ruling, we empirically test the insurance value of audits and find a negative market reaction of the client firms audited by the accounting firms that were still being sued as of the date of Kangmei ruling (i.e., the sued accounting firms). Further, this reaction is weakened when the solvency of the sued accounting firms or the client firms is high, and is intensified when the client firms have high litigation risk. The ruling also eroded investors’ trust in the financial statements for the year 2020 that were audited by the sued accounting firms. Overall, we provide important evidence on the effect of special representative actions from the perspective of audit insurance hypothesis. Journal: China Journal of Accounting Studies Pages: 516-542 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2239674 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239674 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:516-542 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2167724_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Ceng Zeng Author-X-Name-First: Ceng Author-X-Name-Last: Zeng Author-Name: Song Tang Author-X-Name-First: Song Author-X-Name-Last: Tang Title: Does common analyst coverage improve suppliers’ investment efficiency? Abstract: This study examines the effect of common analysts covering both suppliers and their major customers on suppliers’ investment efficiency. Using a sample of A-share listed firms in China from 2007 to 2018, we find that suppliers with common analyst coverage exhibit higher investment efficiency. This effect is stronger when suppliers have greater demand for obtaining customer information from common analysts, for example, when suppliers have shorter relationships with and are smaller than their customers, and when their customers have more fluctuating earnings and poorer accounting information quality. It is also stronger when common analysts possess a distinct information advantage about customers, for example, when they have relatively higher customer industry specialisation, more information about customers’ competitors, more experience, and are star analysts. Taken together, our results suggest that suppliers can obtain prospective information about their customers from common analysts, which facilitates suppliers’ efficient investment. Journal: China Journal of Accounting Studies Pages: 602-630 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2167724 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2167724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:602-630 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239675_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Qingquan Xin Author-X-Name-First: Qingquan Author-X-Name-Last: Xin Author-Name: Yu Liu Author-X-Name-First: Yu Author-X-Name-Last: Liu Author-Name: Yiheng Tang Author-X-Name-First: Yiheng Author-X-Name-Last: Tang Title: China’s audit market competition and the competitive strategies of the international Big 4 audit firms Abstract: This study investigates the competitive strategies of the international Big 4 audit firms when faced with regional competition from the local Big 6 audit firms. We find that for the Big 4, competition reduces their audit fee premiums and forces them to recruit high-risk clients, while does not affect their audit quality. In further analyses, we find that competition led to greater changes for the Big 4 after the CICPA’s proposal in 2007 and when the local Big 6 are in leading positions. We also find that the local Big 6 compromise on audit quality in addition to audit fee premiums and client criteria when faced with competition from small local audit firms. Overall, this study reveals the competitive strategies of the Big 4 under competitive pressure from the local Big 6, which suggests that local audit firms can compete with international audit firms for audit services by scale development. Journal: China Journal of Accounting Studies Pages: 574-601 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2239675 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239675 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:574-601 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239668_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Dan Li Author-X-Name-First: Dan Author-X-Name-Last: Li Author-Name: Tusheng Xiao Author-X-Name-First: Tusheng Author-X-Name-Last: Xiao Author-Name: Chun Yuan Author-X-Name-First: Chun Author-X-Name-Last: Yuan Title: Cultural adaptation and corporate investment decisions: evidence from inter-regional investments Abstract: Corporate inter-regional investment is an important channel for building the domestic economic cycle. This paper explores the impact of firms’ adaptation to regional culture on inter-regional investment based on the sample of newly-established inter-province subsidiaries of A-share listed firms in China from 2006 to 2017. We find that (1) Firms’ low cultural adaptation to home region promote corporate inter-regional investment. (2) Firms are more likely to invest in regions with cultural environments that are more compatible with their own culture value (3) Firms have better investment performance when investing in more culturally adapted regions through better cooperating with new stakeholders and reducing management cost. (4) The impact of cultural adaptation on inter-regional investments is also affected by the state ownership and corresponding regional formal institutions. Our findings have implications for firms to make location choice during inter-regional investment and can help governments attract capital flows. Journal: China Journal of Accounting Studies Pages: 631-659 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2239668 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:631-659 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Meihua Zhou Author-X-Name-First: Meihua Author-X-Name-Last: Zhou Author-Name: Ruining Li Author-X-Name-First: Ruining Author-X-Name-Last: Li Author-Name: Jian Cao Author-X-Name-First: Jian Author-X-Name-Last: Cao Author-Name: Bin Lin Author-X-Name-First: Bin Author-X-Name-Last: Lin Title: Does CEO risk-taking entrepreneurial spirit matter in firm cash holdings? Abstract: The psychological factors of senior executives have an important impact on the firm’s financial policies. In this paper, we investigate the association between CEO risk-taking entrepreneurial spirit and firm cash holdings, and find that firms with higher CEO risk-taking entrepreneurial spirit have less cash holdings. Further, we find that financing constraints can mitigate the negative association between CEO risk-taking entrepreneurial spirit and firm cash holdings, whereas financing needs enhances the association between them. Mechanism test illustrates that CEO risk-taking entrepreneurial spirit affects firm cash holdings through corporate investment. Finally, the results reveal that CEO risk-taking entrepreneurial spirit not only promotes the value of cash holdings, but also is significantly positively associated with both accounting performance and market performance. Our findings shed lights on the impact of executive psychological factors on financial decisions and have important implications for cash-holding decisions of listed firms. Journal: China Journal of Accounting Studies Pages: 543-573 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2239667 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:543-573 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Guoyiming Zhu Author-X-Name-First: Guoyiming Author-X-Name-Last: Zhu Author-Name: Guangyong Lei Author-X-Name-First: Guangyong Author-X-Name-Last: Lei Author-Name: Jingjing Zuo Author-X-Name-First: Jingjing Author-X-Name-Last: Zuo Title: Clan culture and internal pay gap: evidence from listed family firms Abstract: Clan culture, as an enduring traditional culture in China, has a profound impact on the internal governance and sustainable development of family firms. This study reveals a significant positive relationship between regional clan culture and the pay gap within family firms. This relationship is primarily realised through the mechanism of internal trust. Moreover, the positive relationship is more pronounced in firms with local executives, same-name executives, and family members, as well as in regions with high marketing intensity, a thriving economic environment, and openness to the outside world. The study also suggests that the pay gap resulting from clan culture reinforces the conservative impact on the performance, market value, and productivity of family firms in economic sequences. By highlighting the negative effects of clan culture on family business, this research contributes to the literature on corporate governance within a cultural framework. Journal: China Journal of Accounting Studies Pages: 660-693 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2239664 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239664 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:660-693 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2167725_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Shanyun Qiu Author-X-Name-First: Shanyun Author-X-Name-Last: Qiu Author-Name: Qian Liu Author-X-Name-First: Qian Author-X-Name-Last: Liu Author-Name: Weiting Luo Author-X-Name-First: Weiting Author-X-Name-Last: Luo Author-Name: Jun Bai Author-X-Name-First: Jun Author-X-Name-Last: Bai Title: Does corporate social responsibility (CSR) have spillover effect?——Based on the binary relationship of supply chains in China Abstract: With data sampled from listed suppliers and customers in China from 2010 to 2017, the presenting work investigates how corporate social responsibility (CSR) is realised from the perspective of supply chains. Results found that socially responsible customers improved CSR performance of suppliers, revealing a significant CSR spillover effect among supply chains and further suggesting customers’ bargaining power as an important realisation path. In addition, both the CSR sensitivity of customers and the CSR fulfilment ability of suppliers strengthened CSR spillover effect in supply chains. More importantly, suppliers’ CSR performance is positive feedback to customers’ need rather than a publicity stunt to cater to customers. This paper expands current understanding on corporate behavioural coordination from the perspective of supply chains and provides insights for promoting CSR fulfilment in the Chinese scenario. Journal: China Journal of Accounting Studies Pages: 493-515 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2167725 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2167725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:493-515 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239670_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Yunjing Liu Author-X-Name-First: Yunjing Author-X-Name-Last: Liu Author-Name: Bin Wu Author-X-Name-First: Bin Author-X-Name-Last: Wu Author-Name: Min Zhang Author-X-Name-First: Min Author-X-Name-Last: Zhang Title: Can independent directors identify the company’s risk of financial fraud: Evidence from predicting financial fraud based on machine learning Abstract: Combining the company’s risk of financial fraud predicted by the machine learning method and unique Chinese data of board voting, this study investigates whether independent directors can identify the company’s risk of financial fraud. We find that independent directors are more likely to express dissenting opinions on board’s financial-related proposals when the company has a higher risk of financial fraud; this impact is more pronounced when independent directors have more financial backgrounds or higher reputations. Further study shows that companies with independent directors’ dissension have a lower risk of financial fraud in the future after controlling the risk of financial fraud in the current year. Our findings indicate that independent directors can identify the company’s risk of financial fraud and play as a supervisor, thereby reducing the probability of the company’s future financial fraud. Our findings provide direct empirical evidence for the effectiveness of the independent director system and enhance our understanding of independent directors’ actual voting behaviour. Journal: China Journal of Accounting Studies Pages: 465-492 Issue: 3 Volume: 11 Year: 2023 Month: 07 X-DOI: 10.1080/21697213.2023.2239670 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239670 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:3:p:465-492 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2298796_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Wen Wen Author-X-Name-First: Wen Author-X-Name-Last: Wen Author-Name: Xiaoqing Feng Author-X-Name-First: Xiaoqing Author-X-Name-Last: Feng Title: Multiple large shareholders and abnormal stock trading halts Abstract: Using a sample of Chinese A-share listed firms on Shanghai and Shenzhen stock exchanges from year 2003–2019, this paper examines the impact of multiple large shareholders (MLS) on abnormal stock trading halts. The results reveal that listed companies with MLS have a lower probability of abnormal stock trading halts. When the number and share percentage of non-controlling shareholders increase, their inhibitory effect on arbitrary stock trading halts is more significant. Channel tests suggest that MLS can restrain abnormal stock trading halts by reducing the tunnelling activities by controlling shareholders, increasing the proportion of dissenting votes on corporate board, and improving corporate information disclosure quality. The impact of MLS on abnormal stock trading halts is more pronounced in firms with lower quality of internal control and information transparency. Journal: China Journal of Accounting Studies Pages: 795-825 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2298796 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2298796 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:795-825 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2298785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Xiongyuan Wang Author-X-Name-First: Xiongyuan Author-X-Name-Last: Wang Author-Name: Fei Han Author-X-Name-First: Fei Author-X-Name-Last: Han Author-Name: Xuan Peng Author-X-Name-First: Xuan Author-X-Name-Last: Peng Title: Stable suppliers and real earnings management: empirical evidence from private placements Abstract: This study uses text analysis to extract stable supplier information from company annual reports and discusses its impact on the real earnings management strategies used during a private placement period. The results show that companies with stable suppliers conducted more downward real earnings management prior to a private placement than those without such suppliers to form collaborative relationships with suppliers for earnings management. The suppliers mainly assisted majority shareholders in tunnelling, conducting covert methods such as share price discounts and offering cash dividends. This could be driven by the prospect of obtaining more purchases from the company following the private placement. This study is the first to explore how stable suppliers assist companies in conducting real earnings management and majority shareholders with asset tunnelling. The findings contribute to the research on the economic consequences of supplier relationships and the influencing factors of equity financing and real earnings management. Journal: China Journal of Accounting Studies Pages: 756-794 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2298785 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2298785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:756-794 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Cunyu Xing Author-X-Name-First: Cunyu Author-X-Name-Last: Xing Author-Name: Huilan Yuwen Author-X-Name-First: Huilan Author-X-Name-Last: Yuwen Author-Name: Dan Yang Author-X-Name-First: Dan Author-X-Name-Last: Yang Title: Goodwill impairment, auditor dismissal and opinion shopping–evidence from China Abstract: Using listed companies from 2010 to 2019 in China, we investigate whether firms engage in opinion shopping activities when firms dismiss the auditors following a goodwill impairment. We find that firms tend to dismiss the incumbent auditors after receiving a goodwill impairment opinion and engage in opinion shopping with their successor auditors. Furthermore, the successor’s auditor quality is similar to the predecessor’s audit quality following a dismissal. Moreover, firms with low-quality internal control system and low analyst coverage level are more motivated to engage in opinion shopping subsequently after receiving a goodwill impairment opinion. Our findings would be of interest to corporate governance activists, auditors, investors and regulators. Journal: China Journal of Accounting Studies Pages: 864-896 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2239672 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:864-896 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2300289_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ceng Zeng Author-X-Name-First: Ceng Author-X-Name-Last: Zeng Author-Name: Weiguo Zhang Author-X-Name-First: Weiguo Author-X-Name-Last: Zhang Author-Name: Luo Zuo Author-X-Name-First: Luo Author-X-Name-Last: Zuo Title: Accounting for goodwill in China: a case study of two-step acquisitions Abstract: We use a case study to illustrate how different acquisition methods can result in different amounts of goodwill recognised on financial statements in China. China Merchants Bank adopted a two-step acquisition method: first, it acquired 53% of the shares of Hong Kong’s Wing Lung Bank to gain corporate control in 2008; second, it acquired the remaining 47% of shares in 2009. Using this method, China Merchants Bank recognised the acquisition premium as goodwill only in the first step and recognised the acquisition premium in the second step as a decrease in additional paid-in capital. This two-step acquisition method significantly reduces the amount of goodwill shown on financial statements and lowers the likelihood and amount of subsequent goodwill impairment. Different acquisition methods can lead to different amounts of goodwill initially recognised when accounting standards permit the partial goodwill method and regard the transactions between the parent and non-controlling shareholders as equity transactions. Journal: China Journal of Accounting Studies Pages: 695-718 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2300289 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2300289 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:695-718 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2284149_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Jinyang Liu Author-X-Name-First: Jinyang Author-X-Name-Last: Liu Title: CSRC’s supervision and corporate investment efficiency—based on the random inspection Abstract: The random inspection is an important innovation of CSRC’s regulatory initiatives. Using this quasi-natural experiment conducted by the CSRC, we examine the impact of the random inspection on corporate investment efficiency. The result shows that after the listed firms are inspected, the investment efficiency is significantly improved. Further analysis shows that the improvement of accounting information quality and corporate governance are two important channels through which random inspection affects corporate investment efficiency. Cross-sectional analysis finds that the effect is more pronounced in the group with low internal control and poor legal environment. Lastly, we find that secondary random inspection can significantly strengthen the positive association between random inspection and corporate investment efficiency. The conclusions support the positive significance of CSRC’s supervision. Journal: China Journal of Accounting Studies Pages: 897-920 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2284149 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2284149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:897-920 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239673_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Jian Chu Author-X-Name-First: Jian Author-X-Name-Last: Chu Title: Can the rotation of chief accountants improve the accounting information quality of state-owned enterprises? Abstract: This paper attempts to study the effect of the rotation of chief accountants of central SOEs. It is found that the rotation of chief accountants can improve the accounting information quality of SOEs. Mechanism analyses indicate that the above result is weakened when the tenure of chief accountants is long or after central SOEs carry out the pilot of establishing a standardised board or are audited by the National Audit Office. When further considering the types of rotation, the above result is only reflected when chief accountants come from SOEs in different industries or different cities or chief accountants are promoted. Economic consequence analyses indicate that the rotation of chief accountants alleviates the problem of over-investment and excess perks in SOEs by improving accounting information quality. In summary, the rotation of chief accountants can enhance their independence to improve the governance of SOEs and prevent the loss of state-owned assets. Journal: China Journal of Accounting Studies Pages: 921-945 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2239673 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239673 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:921-945 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2300294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Chuanhui Ma Author-X-Name-First: Chuanhui Author-X-Name-Last: Ma Author-Name: Junxiong Fang Author-X-Name-First: Junxiong Author-X-Name-Last: Fang Title: Does cross-industry loan diversification reduce bank systemic risk? Evidence from listed banks in China Abstract: Banking plays a crucial role as the most significant financial intermediary, and the effectiveness of its diversification strategy aimed at reducing individual bank systemic risk is a significant topic in both theory and practice. In this study, we investigate the impact of cross-industry loan diversification on bank systemic risk using data from listed banks, and reveal a significant positive correlation, indicating a clear‘diversification systemic risk’ effect. This effect remains robust across a series of robustness tests. Further research reveals the influence of cross-industry loan diversification on bank systemic risk operates primarily through the channel of interbank asset similarity. Additionally, we find the‘diversification systemic risk’ effect is particularly prominent among joint-stock banks, those with high interbank deposits，and those with high real estate loans. These findings hold important reference value for the ongoing reforms and practices in China aimed at preventing bank systemic risk. Journal: China Journal of Accounting Studies Pages: 719-755 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2300294 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2300294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:719-755 Template-Type: ReDIF-Article 1.0 # input file: RCJA_A_2239677_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Shuai Qin Author-X-Name-First: Shuai Author-X-Name-Last: Qin Author-Name: Jinsong Tan Author-X-Name-First: Jinsong Author-X-Name-Last: Tan Author-Name: Xiangting Kong Author-X-Name-First: Xiangting Author-X-Name-Last: Kong Title: Does the attendance of independent directors at shareholder meetings matter? The case of risk taking Abstract: Information is the basis for independent directors to make correct decisions. The study found that the participation of independent directors in the shareholder meetings would help them to obtain more real information and curb the excessive risk taking phenomenon of firms caused by agency problems. The mechanism is that independent directors make more stable decisions after obtaining more real information, have higher probability and frequency of dissenting opinions, and reduce the risk tolerance of the board. The diligent behavior of the independent directors who actively participated in the shareholder meetings has been rewarded by the labor market, and they will get more allowances and directorships in the future. The research of this paper has reference significance for the regulators to broaden the access to information of independent directors and improve the performance of independent directors. Journal: China Journal of Accounting Studies Pages: 826-863 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/21697213.2023.2239677 File-URL: http://hdl.handle.net/10.1080/21697213.2023.2239677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcjaxx:v:11:y:2023:i:4:p:826-863