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This study aims to address the unanswered question of whether corporate sustainability has an impact on auditors’ overall judgment and to provide incremental evidence that corporate sustainability reporting has significant effect on financial auditors’ judgment.

Following prior research, the authors, respectively, apply auditors’ decisions on going-concern opinions and three discretionary accrual measures as proxies for auditor conservatism over financial risk and financial reporting risk. The authors collect corporate sustainability reporting and sustainability assurance data of U.S. firms from the global reporting initiative (GRI) database to construct and measure firms’ sustainability reporting activities.

The authors find that nonreporting firms are more likely to receive going-concern opinions than the reporting firms. In addition, reporting firms have a larger scale of discretionary accruals than their nonreporting counterparts. The authors also obtain consistent findings that sustainability assurance or accounting assurance providers strengthen the effect of sustainability reporting on auditors’ judgment.

First, using discretionary accruals as measures of auditor conservatism is controversial, as accruals are the joint product by auditors and clients. Second, binary variables as a measure of sustainability reporting activities limit the inference. Lastly, the findings based on limited samples may weaken the external validity.

The findings imply that firms engaging in sustainability activities are lower in financial or financial reporting risk. Firms can influence audit practitioners’ overall judgment through sustainability reports. Sustainability commitments and reporting have become a part of firms’ risk management.

The findings imply that sustainability reporting could become an integrated part of regulated corporate disclosure. Sustainability assurance reduces social costs by lending credibility to sustainability reports.

This paper provides incremental evidence that sustainability reports provide useful information and signals that influence auditors’ professional judgment. The findings also suggest that sustainability assurance strengthens auditors’ confidence in using sustainability information, thus amplifying the effect of sustainability reporting on auditors’ judgment.

The literature suggests that management discretion to adjust resources in response to changes in sales can create asymmetric cost behavior and management incentives to move stock prices can influence its decision to release management earnings forecasts (MEF). The purpose of this paper is to investigate the association between a firm’s degree of cost stickiness and its propensity to release MEF. The authors propose that both MEF and cost stickiness are influenced by management strategic choices and provide two possible explanations along with supportive evidence. First, when management is optimistic about future performance, it tends to increase both cost stickiness and is willing to disclose the optimistic expectations through MEF. Second, cost stickiness increases information asymmetry between management and investors, thus management tends to issue earnings forecast to mitigate the perceived information asymmetry.

The authors collect firm-level fundamental data from the COMPUSTAT database, and market data from the CRSP database during 2005 and 2016. The data used to measure variables related to institutional ownership and financial analysts are, respectively, obtained from the Thomson Reuters and the I/B/E/S databases. The quarterly MEF data are from two databases. The authors obtain the data before 2012 the from Thomson First Call’s Company Issued Guidance database and manually collect the data between 2012 and 2016 from the Bloomberg database for the largest 3,000 publicly traded US companies. The measurement of cost stickiness is based on the industry-level measurement developed by Anderson et al. (2003) and the firm-level measurements developed by Weiss (2010). The authors construct two measurements, management’s propensity to issue MEF and the frequency of MEF, to capture management’s voluntary disclosure strategy.

The analyses of a sample between year 2005 and 2016, indicate that the firm-level cost stickiness is positively associated with the firm’s propensity to issue MEF and the frequency of MEF. Moreover, the authors find that the level of cost stickiness is associated with more favorable earnings news forecasted by management. Additional tests suggest that both information asymmetry and managerial optimism may explain the relationship between cost stickiness and MEF. Finally, the authors find that the association between cost stickiness and MEF behaviors is more pronounced when the resource adjustment cost is high and when the firm efficiency is high. The results are robust after using alternative measurements of cost stickiness and MEF.

First, this paper attempts to build a bridge between managerial accounting and financial accounting by providing evidence of managerial incentives and discretions that affect both cost structure and earnings. The authors contribute to, and complement, prior studies that primarily disentangle the complicated accounting information system by focusing on either the internal information system or the external information system. Second, the paper complements prior studies that examine cost stickiness and its determinants of asymmetric cost behavior by providing additional evidence for the value-relevance of cost stickiness strategy and its link to MEF releases in mitigating information asymmetry. Third, the findings are also relevant to current debates among policymakers, academia and practitioners regarding modernization of mandatory and voluntary disclosures through discussing the managerial incentive behind the managerial disclosure strategies as reflected in MEF releases (SEC, 2013). Fourth, the authors provide evidence regarding management’s role in influencing cost asymmetry and MEF releases, which support the theoretical argument that management discretions affect the firms’ cost structure and MEF disclosures.

This chapter proposes that tax education, proxied by Master of Science in Taxation (MST) degree, has substantial influence on chief financial officers’ (CFOs) knowledge, skill sets, values, and cognitive preferences and further influences their decisions in tax reporting. By empirically examining the relation between CFOs with MST degree and their companies' tax compliance based on US data between 2004 and 2016, we find that CFOs with MST degree are associated with improved tax compliance, suggesting that US MST education, beyond general accounting education, cultivates graduates with higher levels of professionalism and ethics in the field of taxation. Moreover, we find that CFOs' tenure, age, and compensation influence the relation between tax education and tax compliance, suggesting company's compensation and employee policies influence executives' tax decisions. Finally, we find that pressures from financial reporting and CEOs with accounting educational background could alleviate the role of CFOs with accounting educational background in tax reporting, while institutional owners could strengthen the role of CFOs. This chapter provides evidence regarding the social implication of MST program and has important managerial implication to tax compliance, executive recruitment, and corporate governance.

The purpose of this paper is to examine the efficiency of current subsidized crop insurance products (SCIPs) in Miyun county, in northern China, by testing the existence of adverse selection.

The authors examine the efficiency of SCIPs from a farmers' point of view by testing the existence of adverse selection using nonparametric tests and logit regression on data from individual interviews in Miyun County. Due to adverse selection, producers with more risk should be more likely to buy crop insurance in pursuit of the benefits from SCIPs.

However, both methods conclude no existence of adverse selection, which indicates that the programs are inefficient. This may not be surprising based on the issues of concern cited above. The opportunities and challenges of a growing interest in weather index insurance are discussed toward the end of the paper.

This paper weaves together literature on traditional and weather index insurance, along with primary data from a survey, to examine the pros and cons of each type of insurance. Implications for policy makers are to compare the tradeoffs between concerns of the two types of insurance examined here, traditional and weather index insurance. Ultimately, the political goals might best determine which option is most desirable.

This study aims to investigate the cause of high-order wheel polygonization in a plateau high-speed electric multiple unit (EMU) train.

A series of field tests were conducted to measure the vibration accelerations of the axle box and bogie when the wheels of the EMU train passed through tracks with normal rail roughness after re-profiling. Additionally, the dynamic characteristics of the track, wheelset and bogie were also measured. These measurements provided insights into the mechanisms that lead to wheel polygonization.

The results of the field tests indicate that wheel polygonal wear in the EMU train primarily exhibits 14–16 and 25–27 harmonic orders. The passing frequencies of wheel polygonization were approximately 283–323 Hz and 505–545 Hz, which closely match the dominated frequencies of axle box and bogie vibrations. These findings suggest that the fixed-frequency vibrations originate from the natural modes of the wheelset and bogie, which can be excited by wheel/rail irregularities.

The study provides novel insights into the mechanisms of high-order wheel polygonization in plateau high-speed EMU trains. Futher, the results indicate that operating the EMU train on mixed lines at variable speeds could potentially mitigate high-order polygonal wear, providing practical value for improving the safety, performance and maintenance efficiency of high-speed EMU trains.

The purpose of this study is to investigate the effect of different infiltration heads on soil water movement using a free infiltration test for small-diameter tube outflow furrow irrigation under mulch film.

The test consisted of small-diameter tube outflow furrow irrigation under mulch film with three different infiltration heads (3, 4 and 5 cm) and furrow drip irrigation under mulch film using an infiltration head of 4 cm (CK).

During irrigation, the accumulated infiltration and migration distance of the wetting front increased with time. During the same infiltration time, both the accumulated infiltration and horizontal migration distance of the wetting front increased with the larger infiltration head, whereas the vertical migration distance of the wetting front gradually decreased. With increasing distance from the furrow center, soil moisture content declined, but the uniformity of its distribution increased as the infiltration head increased.

This study can provide scientific basis for the use of small-diameter tube outflow furrow irrigation under mulch film.

During metro construction using the shield method, the construction process's complexity, the construction environment's variability, and other factors can easily lead to tunnel construction accidents. This paper aims to explore the interconnections between risk factors and related accident types, as well as the risk chain formed between risk factors, and to analyze the key risk factors and vulnerabilities in shield tunnel construction through empirical data.

Based on the social network analysis theory, the connection of various risk factors in subway shield tunnel construction is explored, and the mechanism of multiple risk factors is studied. Through literature analysis, articles on safety risk factors in metro shield tunnel construction are organized and studied, and the identified safety risk factors can comprehensively reflect the significant risks that need to be concerned in metro shield tunnel construction.

The results show that a small world characterizes the SNA network of safety risk factors for metro shield tunnel construction: The frequency of association between the five risk factors “unsafe behavior,” “site management,” “safety supervision and inspection,” “safety education system” and “safety protection” is higher than that of other factors. Only a few risks, such as “site management,” “safety supervision and inspection,” and “rapid response capability,” directly lead to accidents. In addition, risk factors such as the “safety education system” and “safety protection” will indirectly cause unsafe behaviors of construction personnel.

During construction, the probability of occurrence of risk factors may vary with the construction phase and area and is not considered in this paper. In addition, although this paper identifies, determines and analyzes the risk factors affecting the safety of metro shield tunnel construction, including the importance of each risk factor and the connection between them, more detailed information before and after the accident could not be obtained based on the accident investigation report alone. Therefore, future research can collect the same accident case from more sources to obtain more information.

The theory of accident causation has been improved at the theoretical level. The identified safety risk factors can comprehensively reflect the significant risks that need to be paid attention to in metro shield tunnel construction. From a practical point of view, the results of the study provide a basis for the rational control of the risk factors in the construction of subway shield tunnels, which can help guide practitioners to do a good job of risk prevention before the construction of metro shield tunnels and reduce the probability of related accidents.

This study expands the application of social network analysis in the field of subway tunnel construction risk, quantitatively analyzes the key risk factors and vulnerabilities in shield method tunnel construction and proposes policy recommendations for future metro tunnel construction safety management.