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11 – 20 of over 13000Kun Wang and Zahid Iqbal
The purpose of this research is to provide further evidence on the association between the IPO signaling mechanisms (i.e. retained ownership, auditor choice, and earnings…
Abstract
Purpose
The purpose of this research is to provide further evidence on the association between the IPO signaling mechanisms (i.e. retained ownership, auditor choice, and earnings forecast) by using a less restrictive sample and by performing additional empirical tests.
Design/methodology/approach
Single equations are used as the baseline approach to estimate the three models. In addition, Copley and Douthett's 2002 simultaneous equation systems are applied to examine whether the results remain the same. Moreover, ranked values of the risk proxies of IPOs are derived and general least squares are run on these ranked variables.
Findings
Findings indicate that auditor reputation and retained ownership are not substitute signals. It is observed that as firm risk increases, entrepreneurs are more likely to retain higher ownership to signal firm value. In addition, contended that positive earnings disclosure before IPO is not associated with retained ownership in a significant manner. An analysis of the economic implication of the results suggests that findings are more representative.
Research limitations/implications
In this study the risk measures used (as well as those used in other studies) may not adequately proxy for offering firm risk. Additionally, the sample is restricted by missing values of the retained ownership variable. Further study can expand the sample using retained ownership obtained from other data sources. A study employing alternative approaches to control for the supply‐side effect of firm risk could be also productive.
Practical implications
Findings are of particular interest to firms that are planning to go to the public. They need to evaluate the benefit and cost of selecting a particular information system in signaling firm value to the market.
Originality/value
Using a larger sample, comprehensive testing periods, and ranked risk proxies contribute to the literature on evaluating singling mechanisms of IPOs.
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Abbas Ali Daryaei, Yasin Fattahi and Ali Aldbs
The purpose of this paper is to focus on exploring the mutual impact of accounting conservatism and corporate social responsibility (CSR).
Abstract
Purpose
The purpose of this paper is to focus on exploring the mutual impact of accounting conservatism and corporate social responsibility (CSR).
Design/methodology/approach
To empirically assess the theoretical arguments the authors estimate a simultaneous equations system for accounting conservatism and corporate social responsibility determination by two-stage least squares in a sample of 175 firms listed on the Tehran Stock Exchange (TSE) for the period 2009–2019.
Findings
The results of the present study showed that accountability in companies listed on the TSE has led to an increase in the use of conservative practices. Therefore arguably, companies that seek CSR activities are more conservative in preparing and presenting financial reports. Also, companies that engage in conservative practices for the benefit of stakeholders are better able to implement CSR activities to meet stakeholder obligations. These results show a two-way relationship between CSR and accounting conservatism.
Practical implications
According to the results obtained from this study and the elimination of conservatism from the qualitative features of financial reporting in International Accounting Standards, it is recommended for the trustees and authorities of national accounting standards to decide whether this qualitative feature is effective or not.
Originality/value
Furthermore, the findings of this study suggest that the application of corporate social responsibility theories calls for more inquiry.
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This paper attempts to investigate through empirical exercise how the chances of female employment opportunities rise in a developing country like India, against the backdrop of…
Abstract
Purpose
This paper attempts to investigate through empirical exercise how the chances of female employment opportunities rise in a developing country like India, against the backdrop of changes in institutions that are associated with globalization.
Design/methodology/approach
The paper develops a simultaneous equation model through a growth equation, gender equation and globalization equation to identify the factors impacting female labor market opportunities in India, based on annual time series data 1991–2019.
Findings
The major results of this study are as follows: (1) It is social globalization that positively impacts gender equality in employment opportunities apart from economic growth and trade diversification; (2) Evidence of “feminization of labor force” in the context of trade diversification is found; and (3) Equal gender opportunities reflect in equalizing outcomes in the labor market.
Practical implications
Growth strategies need to be constructed in such a way in India that it has redistributive implications and benefits women. The state agency needs to optimize the productive base of human resources and increase women's empowering capability through social and legal sanctions.
Originality/value
The uniqueness of the present paper lies in contributing to the existing literature on how gender inequality impacts trade diversification and how trade diversification impacts gender.
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Jun Zhang, Yixuan Ma, Zongjin Ren, Tao Bai, Peikai Hu and Zunhao Wang
The purpose of this paper is to improve the reliability of the force measurement system by determining the reliable test range of dynamometer.
Abstract
Purpose
The purpose of this paper is to improve the reliability of the force measurement system by determining the reliable test range of dynamometer.
Design/methodology/approach
Based on the principle of leverage and moment balance, a general force distribution model is applicable in where the test point is located either inside or outside the support region of four three-component force links of dynamometer is established. After corroborating the correctness of the model through verification experiments, the boundary conditions that each three-component force link should satisfy are analyzed by considering the characteristic of the dynamometer components comprehensively. Furthermore, the reliable test range of dynamometer is determined, followed by a calibration experiment to verify its rationality.
Findings
The relationships between the reliable test range and the tested force, the bolt pre-tightening force and the bearing capacity of quartz wafers are clarified. Further, the experimental calibration results show that when the test point is within the reliable test range, the three-directional output voltage of dynamometer has excellent linearity and repeatability. The nonlinearity and repeatability in X-, Y- and Z-directions are all less than 1.1%.
Originality/value
A general mathematical model of force distribution of four three-component force links is constructed, which provides a theoretical basic for the mechanical analysis of multi-sensors’ dynamometer. Comprehensively considering the performance of dynamometer components, the value of measured force and the pre-tightening force, the simultaneous equations of reliable test range are deduced, which limits the boundary of allowable test position of piezoelectric dynamometer.
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Claudio Felisoni de Angelo, Rangamohan V. Eunni and Nuno Manoel Martins Dias Fouto
The paper aims to evaluate the relative importance of various factors that influenced the flow of foreign direct investment (FDI) into Brazil in recent years. Analysis of…
Abstract
Purpose
The paper aims to evaluate the relative importance of various factors that influenced the flow of foreign direct investment (FDI) into Brazil in recent years. Analysis of empirical data indicates that evolution of the consumer market and strength of consumer sales are more important in explaining capital movements into Brazil than other frequently offered explanations such as exchange rates and country risk.
Design/methodology/approach
The paper uses two‐stage least squares regression to estimate the coefficients of a system of simultaneous equations relating FDI flows into Brazil to various influential factors.
Findings
The results indicate that internal market growth represented by aggregate consumer sales was a significant determinant of FDI into Brazil. Increase in interest rate on consumer financing was negatively related and the attractiveness of the Brazilian market had no impact on FDI flows during the captioned period.
Research limitations/implications
While factors such as inflation and exchange rates might be more important for smaller, less stable markets, in the case of larger emerging markets such as Brazil, multi‐national firms might be less concerned with short‐term fluctuations and more guided by internal market growth that affords greater opportunities to achieve economies of scale and scope.
Practical implications
The findings suggest that policy planners in big emerging markets should try to stimulate their internal markets rather than tweak fiscal and monetary policies to attract FDI.
Originality/value
The paper extends and expands the knowledge of international capital flows and provides a more nuanced understanding of the importance of internal market dynamism in attracting FDI into emerging markets.
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Yunsong Jiang, Chao Yuan and Jinyi Zhang
In this study, the authors demonstrate the inherent connections between bank risk-taking, performance and executive compensation in the banking sector of China by developing a…
Abstract
Purpose
In this study, the authors demonstrate the inherent connections between bank risk-taking, performance and executive compensation in the banking sector of China by developing a theoretical model and performing empirical tests with simultaneous equation models.
Design/methodology/approach
The authors construct a multi-task principal-agent model to capture agency problems in China, and the model can be extended to various cases. In empirical tests, simultaneous equation models are used to examine the theoretical predictions by eliminating endogenous concerns efficiently compared with the methods in the existing literature.
Findings
The results indicate that the regulator fails to provide bank managers with positive incentives to control risk, whereas the compensation guidance policy (2010) proposed by the CBRC alleviates this problem in China. Additionally, the authors established that shareholders reward bank managers for better and more stable performance. The authors propose the introduction of restricted stock options into the compensation design, as the existing compensation design fails to balance the performance and risk-taking of banks.
Research limitations/implications
First, the executive compensation structure and details in China are not available. In addition, the equity-based incentive compensation is forbidden. Therefore, this paper cannot provide more details about how the compensation structure affects bank manager behaviours. Secondly, the database consists only 25 listed commercial banks. Luckily, the assets of these banks could account for the vast majority of China's banking assets. The authors also expect that new methodologies such as machine learning and deep learning will be adopted in the research on bank risk management.
Practical implications
First, the regulator should optimise the compositions and payment rule of bank executive compensations. Secondly, it is advisable to adopt restricted deferred share reward or stock option compensation in due course. Thirdly, the regulator can require the banks that undertake excessive risks and troubled by moral hazard to increase the independent director proportion on the bank board according to the authors' empirical tests that higher independent proportion prevents the risk accumulations effectively. Fourthly, except for absolute compensation, the gap between executives' salary and average employee's income should be taken account.
Originality/value
This study provides a theoretical framework that incorporates the manager behaviours, executive compensation and bank regulations, and it provides empirical tests by solving endogenous concerns. Additionally, this study examines the effects of China's compensation guidelines issued in 2010. The authors believe that this study adds value to the existing literature by illustrating the compensation mechanism in China.
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– The purpose of this paper is to investigate the linkages between climate change, income dynamics and nutrition intake in rural China.
Abstract
Purpose
The purpose of this paper is to investigate the linkages between climate change, income dynamics and nutrition intake in rural China.
Design/methodology/approach
Using a system of simultaneous equations in a three-stage least squares model instrumented with carbohydrates, fats, proteins and farm income the authors found generally that the greatest impact on nutrition would be from changes in temperature.
Findings
The authors do not find that modest changes in precipitation affect nutrient intake, but extreme events such as drought do. Furthermore, the authors found a strong income effect and this income effect is opposite the heating effect. This may suggest that large swings in nutrient intake brought about by climate change may be countermanded by equivalent increases in income. The authors also found that in terms of general measures of elasticity that market effects, especially in the price of meats, can impact carbohydrate, fat and protein intake as much as global warming.
Originality/value
The authors believe that three aspects of this manuscript will make it interesting. First, in the short term, poorer households would be the most vulnerable and sensitive to climate change. However, in the long term, all households in rural China appear able to deal with changing climatic conditions through adaptation. Second, the authors do not find evidences to prove the existence of a poverty nutrition trap in rural China. Third, the results also indicate that, the nutrition intake of households in rural China is more prone to gradual changes, rather than extreme events.
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This paper describes a number of models used in bankruptcy studies to date. They arise from two basic model designs used in studies of financial distress: cross-sectional studies…
Abstract
This paper describes a number of models used in bankruptcy studies to date. They arise from two basic model designs used in studies of financial distress: cross-sectional studies that compare healthy and distressed firms, and time-series formulations that study the path to failure of (usually) distressed firms only. These two designs inherently foster different research objectives. Different instances of the most recent work taken from each of the above research groups, broadly categorized by design, are described here including new work by this author. It is argued that those that investigate the distress continuum with predominantly explanatory objectives are superior on a number of criteria to the studies that follow what is essentially a case-control structure and espouse prediction as their objective.
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Changjun Zheng, Tinghua Xu and Wanxia Liang
In order to improve banks' ability to fight against risks, China's financial regulatory authorities refer to the Basel Accord, and bank capital adequacy ratio is taken as an…
Abstract
Purpose
In order to improve banks' ability to fight against risks, China's financial regulatory authorities refer to the Basel Accord, and bank capital adequacy ratio is taken as an important means of control. The purpose of this paper is to investigate the internal mechanism between capital buffers and risk adjustment.
Design/methodology/approach
Based on the dynamic characteristics of a bank's continuing operations, the authors established an unbalanced panel of China's commercial bank balance‐sheet data from 1991 to 2009 and used the Generalized Method of Moments to examine the relationship between short‐term capital buffer and portfolio risk adjustments.
Findings
The authors' estimations show that the relationship between capital and risk adjustments for well capitalized banks is positive, indicating that they maintain their target level of capital by increasing (decreasing) risk when capital increases (decreases). In contrast, for banks with capital buffers approaching the minimum capital requirement, the relationship between adjustments in capital and risk is negative. That is, low capital banks either increase their buffers by reducing their risk, or gamble for resurrection by taking more risk as a means to rebuild the buffer. Moreover, the authors' estimations show that the management of short‐term adjustments in capital and risk is dependent on the size of the capital buffer.
Research limitations/implications
From the current research documents, there are few empirical researches on capital buffers and risk adjustment, and the research sample time limits of current papers are a little earlier. The researches did not reflect China's commercial banks' capital buffer and risk adjustment after the new Basel Accord.
Practical implications
Banks' adjustment speed of target level depends on the size of capital buffer, proving that the speed of adjusting capital buffer of banks with smaller capital buffer is significantly faster than their counterparts with larger capital buffers.
Originality/value
The paper uses the dynamic feature of banks' lasting operations as the logical starting point, which is ignored by the current researches, and investigates the internal mechanism between capital buffers and risk adjustment.
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