Blockholders and real earnings management-the emerging markets context

Amin, Qazi Awais; Cumming, Douglas J.

doi:10.1016/j.intfin.2021.101434

Cited by 15 publications

(5 citation statements)

References 92 publications

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“…To verify our assumption, we construct the following regression model (2) and use ordinary least square to estimate:

T Q_{normali, normalt + 1} goodbreak= α_{0} goodbreak+ β_{1} P T_{normali, normalt} goodbreak+ β_{2} italicPenalt y_{i, t} goodbreak+ β_{3} italicControl s_{i, t} goodbreak+ λ goodbreak+ γ goodbreak+ ε

where TQ i,t + 1 indexes the Tobin's Q value of firm i in t + 1 year. Tobin's Q value is one of the most representative indicators to measure firm value (Amin & Cumming, 2023; Benkraiem et al, 2022; Dewaelheyns et al, 2023). Other variables are consistent with the above definition.…”

Section: Resultsmentioning

confidence: 99%

Administrative penalties and corporate CSR disclosure strategies

Duan,

Zhang,

Meng

2024

Manage Decis Econ

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Corporate social responsibility (CSR) disclosure is an important way for firms to achieve social goals. As stakeholders pay more attention to CSR performance, the CSR report strategy has attracted academic attention. Prior studies have stressed the important role of positive CSR disclosure strategies in a firm's reputation and market value, but our study shows different findings. Using a sample of China's A‐share listed firms from 2008 to 2019, we find a significant negative correlation between administrative penalties and the use of pictures and tables in CSR reports, which is more significant for firms being penalized rather than individuals in firms. Investor attention and agency costs provide a mechanism explanation. Heterogeneity analysis shows that in regions with a low level of legal institutions, the effects of administrative penalties on the use of pictures and tables in CSR reports are more significant. Nevertheless, the seemingly negative disclosure strategy ultimately contributes to corporate value.

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“…To verify our assumption, we construct the following regression model (2) and use ordinary least square to estimate:

T Q_{normali, normalt + 1} goodbreak= α_{0} goodbreak+ β_{1} P T_{normali, normalt} goodbreak+ β_{2} italicPenalt y_{i, t} goodbreak+ β_{3} italicControl s_{i, t} goodbreak+ λ goodbreak+ γ goodbreak+ ε

Section: Resultsmentioning

confidence: 99%

Administrative penalties and corporate CSR disclosure strategies

Duan,

Zhang,

Meng

2024

Manage Decis Econ

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“…Recently, Ref. [74] showed that in Singapore and Vietnam, firms that voluntarily adopted governance practices with better educated independent non-executive directors and optimal tenure significantly reduced earnings manipulation compared to firms required to adopt these practices with less educated directors and suboptimal tenure. Using a sample of Sub-Saharan Africa countries, Ref.…”

Section: Empirical Review and Hypotheses' Developmentsmentioning

confidence: 99%

The Operational Risk Disclosure Threshold Effect in the Earnings Management–Sustainability Firm Performance Nexus in Saudi Arabia: A Dynamic Panel Threshold Regression Model

Alsulami

2024

Sustainability

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Although the relationship between earnings management and firm performance has been well explored in the literature, sustainable performance has not yet been examined. Furthermore, the literature has not addressed the issue of nonlinearity between earnings management and firm performance. Therefore, this paper aims to examine the potential nonlinear relationship between earnings management and sustainable firm performance in Saudi Arabia using a sample of 70 listed firms over the 2015–2022 period. Specifically, it investigates the operational risk disclosure threshold effect in the earning management–sustainable firm performance nexus. To do so, the dynamic panel threshold regression model (DPTR) is performed. The result proves that there is a threshold effect of operational risk disclosure in the relationship between earning management and sustainable firm performance. Specifically, the threshold values of operational risk disclosure for the three models are estimated at 6 between the low- and the high-operational-risk-disclosure regimes. In the lower regime, firm performance decreases when earning management increases; however, in the higher regime, firm performance increases when earning management increases. These outcomes support the predictions of agency and positive accounting theories.

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“…Because the main profit source of the automobile industry is still the traditional enterprises, coupled with the investment risk brought by the technological change, enterprises are inclined to be opposed to new energy technology system reform. Although public subsidies have performed an irreplaceable role in improving R&D output for NEV firms, it cannot be denied that there still have been inevitable drawbacks during the subsidy policy [32]. These drawbacks include how public subsidies can crowd out an enterprise's original investment [33], and how some enterprises will send false signals, leading to the adverse choice of public subsidies [34].…”

Section: Firms' External Factormentioning

confidence: 99%

The Impact of Firm Heterogeneity and External Factor Change on Innovation: Evidence from the Vehicle Industry Sector

Feng

Zhao

et al. 2022

Sustainability

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We explore the connection between firms’ technological innovation capabilities and their internal and external factors. To empirically test this relationship, we use panel data for new energy vehicle (NEV) firms and traditional fuel vehicle firms in China from 2010 to 2020. Our findings show that public subsidies do have a positive impact on firms’ technology innovation capability, and there are consistent findings for both NEV and traditional fuel vehicle firms. Firms have a supportive effect on their innovative ability when they satisfy conditions of high profitability, low leverage, high equity concentration, and highly educated employees. The inability to maximize the effectiveness of public subsidies is due to an imbalance in the internal and external factors of firms. Therefore, we innovatively analyze the internal and external factors of NEV firms as an integrated system, taking into account the high correlation between them, rather than discussing them separately. The paper is not only of academic significance to the development of NEV firms to improve their technological innovation capability and the transformation of traditional fuel vehicle firms, but also of practical significance to the reduction of greenhouse gas emissions and the achievement of the “double carbon” goal.

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Blockholders and real earnings management-the emerging markets context

Cited by 15 publications

References 92 publications

Administrative penalties and corporate CSR disclosure strategies

Administrative penalties and corporate CSR disclosure strategies

The Operational Risk Disclosure Threshold Effect in the Earnings Management–Sustainability Firm Performance Nexus in Saudi Arabia: A Dynamic Panel Threshold Regression Model

The Impact of Firm Heterogeneity and External Factor Change on Innovation: Evidence from the Vehicle Industry Sector

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