The Budget Execution Quality of Related Party Transactions: Evidence from Hong Kong

This paper proposes to use the related party transactions’(RPT)budget completion ratio(BCR)as indicator of RPT’s execution quality.This paper studies BCR by defining budget ceiling through RPTs announcement and comparing the amount disclosed in annual report as budget execution result.Through statistical analysis of 285 RPT announcements,we classify RPT’s BCR into four benchmark grades.This paper sums up the BCR of RPT from the samples,and deduces moral obligation and moral judgement curve(OJ curve)in terms of BCR.OJ curve is the real dynamic equilibrium after the struggle agency problems.From our statistical results,we verified that Weitzman’s ratchet effect exists in the budget formulation of RPTs,and it is a solid proof of Weitzman’s ratchet effect applied to real business scenarios.The empirical results show ratchet effect exists in BCR of RPTs before and after the change from GEM board listing to main board listing in Hong Kong(Transfer).This paper also finds that it is significant to find the estimated actual amount in the coming year through the budget completion ratio(BCR)of RPT from last year.This paper is a pioneer to examine the execution quality of RPT by the means of(i)Weitzman’s Truth Inducing Model,(ii)BCR,and(iii)SGR as well as(iv)estimated actual amount.

Related party transactions and firm value: The moderating role of corporate social responsibility reporting

This study investigates the influence of related party transactions(RPTs)on firm value.Further,it examines whether a firm’s corporate social responsibility(CSR)reporting reflects its corporate values and ethical concerns,therefore mitigating the value-destroying effects of RPTs.Based on 274 observations from publicly listed firms in Indonesia,our results show that RPTs(i.e.,related party sales)are negatively related to firm value.Further,we find that in the presence of better CSR reporting,the relationship between RPTs and firm value becomes more positive.This is in line with the view that CSR reporting,which reflects firms’ethical concerns,may serve as a mechanism against managers’opportunism.However,we find that related party payables have a positive relationship with firm value.Further investigation reveals that,although certain RPTs show a short-term,value-enhancing effect,these transactions seem to result in subsequent tunneling activities,suggesting managerial opportunism in the long term.

The Relationship Between the Communist Party of China and the Japanese Communist Party During the War of Resistance Against Japanese Aggression

It is important to clarify the historical facts and summarize the characteristics of the communication and cooperation between the CPC and the JCP during the War of Resistance against Japanese Aggression, as it holds historical and contemporary relevance. The research findings indicate that the Comintern played a crucial role as the key intermediary in facilitating the establishment of connections between the CPC and the JCP and in driving the deepening of their relationship. During their exchanges, both parties adhered to a flexible and multi-layered friendship based on the unified values of patriotism and internationalism. Their efforts played a significant role in the establishment of an international anti-fascist front in the East.

The Relationship Between the Communist Party of China and the Japanese Communist Party During the War of Resistance Against Japanese Aggression

It is important to clarify the historical facts and summarize the characteristics of the communication and cooperation between the CPC and the JCP during the War of Resistance against Japanese Aggression,as it holds historical and contemporary relevance.The research findings indicate that the Comintern played a crucial role as the key intermediary in facilitating the establishment of connections between the CPC and the JCP and in driving the deepening of their relationship.During their exchanges,both parties adhered to a flexible and multi-layered friendship based on the unified values of patriotism and internationalism.Their efforts played a significant role in the establishment of an international anti-fascist front in the East.

Inquiry Letters and Tax Aggressiveness

This study examined the impact of inquiry letters on corporate tax aggressiveness based on the special inquiry system in Chinese stock exchanges.It found that the receipt of inquiry letters significantly inhibited tax aggressiveness.The channel through which inquiry letters worked involved a monitoring effect on related-party transactions.The disincentive effect of inquiry letters on corporate tax aggressiveness was mainly found in firms with overseas operations,low-quality of internal control,and weak tax enforcement.Examining the textual information in inquiry letters,the results show that more questions and the demand for a specific opinion from the auditor led to a greater disincentive effect.The level of detail in firms'reply letters weakened this disincentive effect.Finally,the disincentive effect of tax aggressiveness was more pronounced when inquiry letters pointed to tax-related issues.