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Article
Publication date: 4 October 2022

Gang Zhao, Xin Yu and Kailun Ni

The findings suggest that reducing information processing costs as a result of better transportation is an important ingredient in promoting the pricing of firm-specific…

Abstract

Purpose

The findings suggest that reducing information processing costs as a result of better transportation is an important ingredient in promoting the pricing of firm-specific information. This study aims to discuss the aforementioned issue.

Design/methodology/approach

The authors adopt a difference-in-difference (DID) research design to examine the impact of information processing costs on stock price synchronicity with a sample of firms listed in the Chinese A-share market during 2007 and 2017.

Findings

This paper shows that the launch of the high-speed railway (hereafter HSR) in China is associated with lower stock price synchronicity, consistent with the theory that the HSR reduces investors’ information processing costs (cost of monitoring, acquiring and analyzing firm disclosures). This effect is more pronounced for companies located in remote areas than for those located in large cities. Further tests show that the negative association between the launch of HSR and stock price synchronicity is stronger for companies with higher information asymmetries, proxied by higher equity concentration, higher complexity and lower internal control quality.

Originality/value

This study contributes to the literature in the following three ways. First, prior literature relates the effects of geographic distance to information transmission and information asymmetry between insiders and outside investors (e.g. Coval and Moskowitz, 2001; Kang and Kim, 2008; Malloy, 2005). The authors supplement the literature by providing new empirical evidence from an exogenous shock (natural experiment), that is, the launch of HSR, that facilitates transportation and reduces information transmission costs. Second, prior studies have shown that new airline routes that facilitate transportation improve investment and productivity (e.g. Bernstein et al., 2016; Giroud, 2013). The authors extend this stream of studies by showing that the development of HSR networks reduces information processing costs, and promotes the incorporation of firm-specific information in the asset pricing. More importantly, in this study, the authors explicitly incorporate disclosure processing costs theory into our framework thus enhancing our understanding of how and why improvements in transport relate to better market outcomes.

Details

Asian Review of Accounting, vol. 31 no. 1
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 29 March 2022

Jun Yao, Ruochen Ding, Kailun Li, Baorui Du, Lu Zhao and Yixiang Yuan

The purpose of this paper is to identify the energy absorption characteristics of arch micro-strut (ARCH) lattice structure (different from traditional straight…

Abstract

Purpose

The purpose of this paper is to identify the energy absorption characteristics of arch micro-strut (ARCH) lattice structure (different from traditional straight micro-strut lattice structure) under high-speed impact, and promote the development of special-shaped micro-strut lattice structure.

Design/methodology/approach

The study serves to study the anti-impact and energy absorption characteristics of ARCH lattice structure under different strain rates and different unit layers of lattice structure. In this paper, quasi-static compression and Hopkinson compression bar experiments are used for comparative analysis.

Findings

The results show that the ARCH lattice structure has obvious strain rate effect. When the strain rate is low, the number of layers of lattice structure has a great influence on the mechanical properties. With the increase of strain rate, the influence of the number of layers on the mechanical properties gradually weakens. So the ARCH lattice structure with fewer layers (less than five layers) should be selected as the impact energy absorbing materials at lower impact rate, while at higher impact rate, the number of layers can be selected according to the actual requirements of components or devices space size.

Originality/value

This study shows that Arch lattice structure has excellent energy absorption performance, and provides a theoretical reference for the application of ARCH lattice structure in energy-absorbing materials. ARCH lattice structure is expected to be applied to a variety of energy absorption and anti-impact components or devices, such as aircraft black box fall buffer components, impact resistant layer of bulletproof and landing buffer device.

Details

Rapid Prototyping Journal, vol. 28 no. 8
Type: Research Article
ISSN: 1355-2546

Keywords

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