Search results
1 – 2 of 2Wanyi Chen, Weiyu Cai, Yingfan Hu, Yuke Zhang and Qinyuan Yu
This study explores the impact mechanism of corporate digital transformation (CDT) on the quality of accounting information.
Abstract
Purpose
This study explores the impact mechanism of corporate digital transformation (CDT) on the quality of accounting information.
Design/methodology/approach
Samples of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2020 are used as a research sample. The empirical analysis is based on the ordinary least squares regression model, and mediation and moderation effect models were used in further analysis.
Findings
This study finds that CDT enhances accounting information quality by alleviating the agency problem. This positive effect is more significant among firms that exhibit less media coverage, have low industry competition and are not subject to cyber-attack.
Originality/value
This study extends the economic consequences of CDT and enriches the literature on the factors that affect accounting information quality. Further, this study's findings guide the government to actively promote CDT, facilitate the digital upgrading of industries and improve accounting information quality and efficiency in capital markets.
Details
Keywords
Sarah Herwald, Simone Voigt and André Uhde
Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized…
Abstract
Purpose
Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized under the concentration-stability/fragility view. We provide empirical evidence that the mixed results are due to the difficulty of identifying reliable variables to measure concentration and market power.
Design/methodology/approach
Using data from 3,943 banks operating in the European Union (EU)-15 between 2013 and 2020, we employ linear regression models on panel data. Banking market concentration is measured by the Herfindahl–Hirschman Index (HHI), and market power is estimated by the product-specific Lerner Indices for the loan and deposit market, respectively.
Findings
Our analysis reveals a significantly stability-decreasing impact of market concentration (HHI) and a significantly stability-increasing effect of market power (Lerner Indices). In addition, we provide evidence for a weak (or even absent) empirical relationship between the (non)structural measures, challenging the validity of the structure-conduct-performance (SCP) paradigm. Our baseline findings remain robust, especially when controlling for a likely reverse causality.
Originality/value
Our results suggest that the HHI may reflect other factors beyond market power that influence banking stability. Thus, banking supervisors and competition authorities should investigate market concentration and market power simultaneously while considering their joint impact on banking stability.
Details