Does exposure to foreign competition affect stock liquidity? Evidence from industry-level import data

Atawnah, Nader; Balachandran, Balasingham; Duong, Huu Nhan; Podolski, Edward J.

doi:10.1016/j.finmar.2017.12.002

Cited by 41 publications

(7 citation statements)

References 67 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Finally, external corporate governance mechanisms-institutional ownership and takeover susceptibility-have a dampening effect on the link between risk-taking and REM. These results are consistent with the fact that external monitoring curbs the ability of managers to reduce the quality of information disclosed to the market (Chung et al 2002;Atawnah et al 2018).…”

Section: Introductionsupporting

confidence: 84%

Uncovering Real Earnings Management: Pay Attention to Risk-Taking Behavior

Alharbi

Mamun

Atawnah

2021

IJFS

Self Cite

View full text Add to dashboard Cite

We examine the impact of corporate risk-taking on firm-level real earnings management. We find that firms with higher risk-taking engage in higher real earnings management. Our results are robust to a series of robustness tests, including simultaneous least squares approach, firm fixed effect, change analysis, and pseudo difference-in-difference analysis. Additional analyses reveal that the impact of risk-taking on real earnings management is more pronounced among firms that experience prior-year loss and are run by top-echelons who are risk lovers. Sarbanes-Oxley Act (SOX) regulation does not attenuate the positive effect of risk-taking on real earnings management. However, external monitoring by institutional investors and takeover susceptibility curb the relation between risk-taking and real earnings management. Our study highlights that outsider, such as investors and regulators, should pay close attention to a firm’s risk-taking behavior to unravel the extent of real earnings management in the firm.

show abstract

Section: Introductionsupporting

confidence: 84%

Uncovering Real Earnings Management: Pay Attention to Risk-Taking Behavior

Alharbi

Mamun

Atawnah

2021

IJFS

Self Cite

View full text Add to dashboard Cite

show abstract

“…Considering this notion, we include the top 10 shareholder ownership ratio (

Tsh

), percentage of independent directors (

IND

), and duality (

Duality

) in our model. Finally, as returns on tangible assets are easily observed, which can improve information transparency (Atawnah et al, 2018), we also control for the proportion of tangible assets (

Tangible

). Descriptive statistics are displayed in Table 1, and a description of all variables is given in Table A1.…”

Section: Methodsmentioning

confidence: 99%

“…Finally, the coefficient of

Tangible

is also significantly positive. We believe that the returns on tangible assets are easily observable and increase information transparency (Atawnah et al, 2018). Overall, the signs of the control variables are generally consistent with our expectations, thereby suggesting that our model setup is reasonable.…”

Section: Green Innovation and Stock Liquiditymentioning

confidence: 99%

Corporate green innovation and stock liquidity in China

Chen

Xiao

Jiang

2022

Accounting & Finance

View full text Add to dashboard Cite

Utilising data from listed companies in China from 2007 to 2020, we first examine whether and how corporate green innovation affects stock liquidity. We demonstrate that corporate green innovation, especially green invention innovation, significantly increases stock liquidity. This promotion effect is stronger in small enterprises, enterprises in cities with serious air pollution, and enterprises in regions with strict environmental regulations. The mechanism analysis suggests that green innovation reduces information asymmetry and improves the financial performance of enterprises. Finally, we explore what types of investors prefer green innovation, and confirm that corporate green innovation is favoured by green investors.

show abstract

“…For example, Nadeem (2021) argues that misbehaving firms face customer boycotts and public outcry—all of which results in significant financial hardships. Among the costs associated with misconduct are legal expenses in the form of fines and settling lawsuits, and expenses associated with implementing new monitoring practices and reputational penalties—all of which eventually undermine a firm's market value (Atawnah et al., 2018; Karpoff et al., 2008; Nadeem, 2021; Zaman, Bahadar et al., 2021). Prior studies provide empirical evidence that managerial risk‐taking increases the likelihood of corporate misconduct, which prompts poorer business performance (Nadeem et al., 2021; Schnatterly et al., 2018; Zahra et al., 2005).…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Do liquid assets lure managers? Evidence from corporate misconduct

Zaman

Atawnah

Nadeem

et al. 2022

Business Fin & Account

Self Cite

View full text Add to dashboard Cite

We examine the effect of asset redeployability on corporate misconduct and find a significant positive relationship.Utilizing a large sample of public US firms for the period of 2001 to 2015, we find that a one standard deviation (SD) increase in the proportion of redeployable assets leads to a 7.2% increase in corporate fines. We also find that the positive association between asset redeployability and corporate misconduct varies across types of misconduct and industrial heterogeneity. In our channel analysis, we find that managerial risk-taking is a potential mechanism through which asset redeployability is associated with misconduct.Additional tests reveal that corporate misconduct associated with asset redeployability leads to lower firm value. Our results remained robust in a series of sensitivity tests and continue to hold after accounting for potential endogeneity concerns. Our paper contributes to the ongoing discourse on the costs and benefits of asset redeployability.

show abstract

Does exposure to foreign competition affect stock liquidity? Evidence from industry-level import data

Cited by 41 publications

References 67 publications

Uncovering Real Earnings Management: Pay Attention to Risk-Taking Behavior

Uncovering Real Earnings Management: Pay Attention to Risk-Taking Behavior

Corporate green innovation and stock liquidity in China

Do liquid assets lure managers? Evidence from corporate misconduct

Contact Info

Product

Resources

About