Search results

This paper provides evidence on the impact of regulatory environment on financial reporting quality of transitional economies. This study compares the financial reporting quality of Hong Kong firms which are cross-listed in mainland China with those of Hong Kong firms cross-listed in China using specific earnings management metrics (earnings smoothing, timely loss recognition, value relevance and managing towards earnings targets) under pre- and post-IFRS regimes.

The financial reporting quality of Chinese A-share companies and Hong Kong listed companies are examined using earnings management measures. Using 2007 as base year, the study used a cumulative of −5 and +5 years of convergence experience which provide a total of 3,000 firm-year observations. In addition to regression analyses, we used the difference-in-difference analysis to check for the impact of regulatory environments on earnings management.

Through the lens of contingency theory, our results indicate that the adoption of the new substantially IFRS-convergent accounting standards in China results in better financial reporting quality evidenced by less earning management. The empirical results further shows that accounting data are more value relevant for Hong Kong listed firms, and that firms listed in China are more likely to engage in accrual-based earnings management than in real earnings management activities. We established that different earnings management practices that are seemingly tolerable in one country may not be tolerable in another due to level of differences in the regulatory environments.

The findings show that Hong Kong listed companies’ exhibit higher level of financial reporting quality than Chinese listed companies, which implies that the financial reporting quality under IFRS can be significantly different in regions with different institutional, economic and regulatory environments. The results imply that contingent factors such as country’s institutional structures, its extent of regulation and the strength of its investor protection environments impact on financial reporting quality particularly in transitional and emerging economies. As such, these factors need to be given appropriate considerations by financial reporting regulators and policy-makers interested in controlling earnings management practices among their corporations.

This study is a high impact study considering that China plays a significant role in today’s globalised economy. This study is unique as it the first, that we are aware of, to compare real earnings activities against accrual-based earnings management in pre- and post-IFRS adoption periods within the Chinese and Hong Kong financial reporting environments, distinguishing between cross-listed and non-cross-listed firms.

Universities are expected to operate with high efficiency, with ever-growing expectations from a rising number of stakeholders in society. From a theoretical perspective economic science does provide frameworks and methods in order to tackle this, with the cornerstone of defining efficiency as a simple relation of a quantity of inputs toward a quantity of outputs. For the practice of university management and policy this does not answer the crucial questions of which inputs and which outputs to measure, and how to ensure the quality aspect of such management approaches. Higher education research can contribute to answering these questions. This chapter outlines a sector-specific framework for efficiency analysis and management, including suggestions regarding how to implement efficiency-improving measures in university settings.

Misconduct allegations have been found to not only affect the alleged firm but also other, unalleged firms in form of reputational and financial spillover effects. It has remained unexplored, however, how the number of prior allegations against other firms matters for an individual firm currently facing an allegation. Building on behavioral decision theory, we argue that the relationship between allegation prevalence among other firms and investor reaction to a focal allegation is inverted U-shaped. The inverted U-shaped effect is theorized to emerge from the combination of two effects: In the absence of prior allegations against other firms, investors fail to anticipate the focal allegation, and hence react particularly negatively (“anticipation effect”). In the case of many prior allegations against other firms, investors also react particularly negatively because investors perceive the focal allegation as more warranted (“evaluation effect”). The multi-industry, empirical analysis of 8,802 misconduct allegations against US firms between 2007 and 2017 provides support for our predicted, inverted U-shaped effect. Our study complements recent misconduct research on spillover effects by highlighting that not only a current allegation against an individual firm can “contaminate” other, unalleged firms but that also prior allegations against other firms can “contaminate” investor reaction to a focal allegation against an individual firm.

This study analyses the effect of fuel efficiency increase on travel demand in the city of Berlin. Vehicle technologies such as advanced driver assistance systems can help drivers to save fuel and thus lower exhaust emissions on a network level. In order to obtain high political endorsement among different stakeholders, the analysis of such effects which have an impact on overall fuel and emission savings are highly relevant. Recent testing of so called advanced driver assistance systems showed their ability to reduce fuel consumption and lower traffic emissions by giving driving recommendations to drivers.

Two effects on driving were simulated using a travel demand model: the increase in fuel prices which will take place in the coming years and a possible increase in vehicle fuel efficiency. Comparing these scenarios allowed us to calculate the effect of price change and the rebound effect of fuel efficiency gains using standard methods for transport elasticities. The simulation was run with the travel demand model TAPAS and the city of Berlin was the network used as a case study.

As fuel prices increase over time, driving tends to decrease. Driving increases, however, if vehicles become more fuel efficient and the result is the observed rebound effect. On a city network level, this also translates to lower emission savings than expected from the vehicle fuel efficiency gains. The rebound effect which we estimated matches similar findings in the literature, specifically in terms of their magnitude.

We used a simulation to compare scenarios of city travel demand. The result allowed us to estimate changes to the desired variables of fuel efficiency and fuel prices. For those interested in the effects of vehicle efficiency gains on city level these results are highly recommended for consideration.

The proposed framework for analysing rebound effects helped to assess the impacts of energy efficiency technologies on a city level.