An important factor influencing corporate finance and economic growth in China lies in its government sponsored industrial policies. Examining China's five-year plans during 1991–2010, we find that state-owned fi...An important factor influencing corporate finance and economic growth in China lies in its government sponsored industrial policies. Examining China's five-year plans during 1991–2010, we find that state-owned firms in government supported industries enjoy faster growth in initial public offerings and higher offer prices. Further, they enjoy faster growth in loans granted by major national banks. However, this preferential access to capital by state-owned firms appears to be achieved at the expense of non-state-owned firms which are crowded out. Government support induces more investment but also brings more overinvestment, which mainly comes from the non-state sector.Finally, supported industries have higher stock market returns and cash flow growth that dampen when state ownership increases.展开更多
We examine the association between network centrality and research using the accounting research community setting.We establish co-authorship network using papers published in the five top accounting journals from 198...We examine the association between network centrality and research using the accounting research community setting.We establish co-authorship network using papers published in the five top accounting journals from 1980 to 2016.We find that the co-authorship network in accounting is a“small world”with some most connected authors playing a key role in connecting others.We use machine learning to label published papers with multiple topics and find patterns in topics over time.More importantly,we find that co-authorship network centrality is positively associated with future research productivity and topic innovation and that the impact of centrality on productivity is higher with more senior authors.Further,centrality of an author’s co-authors also has an incrementally positive impact.We conclude that network centrality positively influences research output.展开更多
We examine the effectiveness of China’s IFRS adoption from the perspective of an important set of financial report users, foreign institutional investors. We find that foreign institutional investment does not increa...We examine the effectiveness of China’s IFRS adoption from the perspective of an important set of financial report users, foreign institutional investors. We find that foreign institutional investment does not increase after China’s IFRS adoption, and some evidence that it actually declines, particularly among firms with weaker incentives to credibly implement IFRS, or with greater ability to manipulate IFRS’s fair value provisions. We also find that the association between earnings and returns generally declines after IFRS adoption, consistent with reduced earnings quality. In addition, we find that foreign institutional investors’ returns decrease after China’s IFRS adoption. Finally, the decline in foreign institutional investment is greater among investors from countries with weak institutions that have also adopted IFRS. Taken together, our evidence suggests that the weak institutional infrastructure in China’s transitional economy impairs IFRS’s intended goal of attracting institutional investment through improved financial reporting quality. Further, financial information users’ home country institutions and IFRS adoption experience affect the effectiveness of IFRS adoption.展开更多
We study the effect of state control on capital allocation and investment in China, where the government screens prospective stock issuers. We find that state firms are more likely to obtain government approval to con...We study the effect of state control on capital allocation and investment in China, where the government screens prospective stock issuers. We find that state firms are more likely to obtain government approval to conduct seasoned equity offerings than non-state firms. Further, non-state firms exhibit greater sensitivities of subsequent investment and stock performance to regulatory decisions on stock issuances than state firms. Our work suggests that state control of capital access distorts resource allocation and impedes the growth of non-state firms. We also provide robust evidence that financial constraints cause underinvestment.展开更多
Starring from MM's theories,we discuss some important topics in capital market research in taxation.We use this article to introduce intuitions and techniques of capital market research in taxation to Chinese rese...Starring from MM's theories,we discuss some important topics in capital market research in taxation.We use this article to introduce intuitions and techniques of capital market research in taxation to Chinese researchers.While it is apparent that many Chinese researchers have already mastered these techniques,we hope that more researchers will be interested in this line of research.We believe that China provides fertile ground for capital market research in taxation.展开更多
基金a generous Tier 2 grant from the Ministry of Education of Singapore, # R-521-000-024-112National Natural Science Foundation of China, # 71372032
文摘An important factor influencing corporate finance and economic growth in China lies in its government sponsored industrial policies. Examining China's five-year plans during 1991–2010, we find that state-owned firms in government supported industries enjoy faster growth in initial public offerings and higher offer prices. Further, they enjoy faster growth in loans granted by major national banks. However, this preferential access to capital by state-owned firms appears to be achieved at the expense of non-state-owned firms which are crowded out. Government support induces more investment but also brings more overinvestment, which mainly comes from the non-state sector.Finally, supported industries have higher stock market returns and cash flow growth that dampen when state ownership increases.
文摘We examine the association between network centrality and research using the accounting research community setting.We establish co-authorship network using papers published in the five top accounting journals from 1980 to 2016.We find that the co-authorship network in accounting is a“small world”with some most connected authors playing a key role in connecting others.We use machine learning to label published papers with multiple topics and find patterns in topics over time.More importantly,we find that co-authorship network centrality is positively associated with future research productivity and topic innovation and that the impact of centrality on productivity is higher with more senior authors.Further,centrality of an author’s co-authors also has an incrementally positive impact.We conclude that network centrality positively influences research output.
文摘We examine the effectiveness of China’s IFRS adoption from the perspective of an important set of financial report users, foreign institutional investors. We find that foreign institutional investment does not increase after China’s IFRS adoption, and some evidence that it actually declines, particularly among firms with weaker incentives to credibly implement IFRS, or with greater ability to manipulate IFRS’s fair value provisions. We also find that the association between earnings and returns generally declines after IFRS adoption, consistent with reduced earnings quality. In addition, we find that foreign institutional investors’ returns decrease after China’s IFRS adoption. Finally, the decline in foreign institutional investment is greater among investors from countries with weak institutions that have also adopted IFRS. Taken together, our evidence suggests that the weak institutional infrastructure in China’s transitional economy impairs IFRS’s intended goal of attracting institutional investment through improved financial reporting quality. Further, financial information users’ home country institutions and IFRS adoption experience affect the effectiveness of IFRS adoption.
基金the City University of Hong Kong (Grant No. 7200080)
文摘We study the effect of state control on capital allocation and investment in China, where the government screens prospective stock issuers. We find that state firms are more likely to obtain government approval to conduct seasoned equity offerings than non-state firms. Further, non-state firms exhibit greater sensitivities of subsequent investment and stock performance to regulatory decisions on stock issuances than state firms. Our work suggests that state control of capital access distorts resource allocation and impedes the growth of non-state firms. We also provide robust evidence that financial constraints cause underinvestment.
文摘Starring from MM's theories,we discuss some important topics in capital market research in taxation.We use this article to introduce intuitions and techniques of capital market research in taxation to Chinese researchers.While it is apparent that many Chinese researchers have already mastered these techniques,we hope that more researchers will be interested in this line of research.We believe that China provides fertile ground for capital market research in taxation.
