Abstract ：

© 2017 City University of Hong Kong and National Taiwan University We investigate the effects of articulation errors on audit opinions and fees, and moderating effects of the auditor size and different litigation regimes on the relationships between articulation errors on audit opinions and fees in China. We find that auditors are more likely to issue modified audit opinions (MAOs) and charge higher audit fees from their clients with higher absolute articulation errors, especially for big auditors and in high litigation risk regime. We also find that auditors who do not issue MAOs to clients with abnormal articulation errors receive higher fees than auditors who do issue MAOs.

Keyword ：

articulation errors audit fees Audit risk cash flow disclosures China

Cite：

Copy from the list or Export to your reference management。

Abstract ：

The mandatory dual-audit and dual-reporting system (DADRS) for mainland Chinese firms cross-listed in Hong Kong (AH firms) was abolished in 2010. This study quantifies a positive spillover effect from Hong Kong-based auditors in the DADRS and examines whether and to what extent this affects the audit quality of AH firms. We find that AH firms exposed to a stronger positive spillover effect have higher audit quality, and the loss of this effect drives the declining audit quality of AH firms after they cancelled the DADRS. This study is among the first empirical works on this research topic.

Keyword ：

Audit quality China Cross-listing Dual audit Positive spillover

Cite：

Copy from the list or Export to your reference management。

Abstract ：

Purpose The purpose of this paper is to investigate the relationships between different types of team goal orientations (team learning orientation, team prove orientation and team avoid orientation) and team performance in new product development (NPD) and how these relationships are mediated by team absorptive capacity. Design/methodology/approach Data were collected through two surveys from 71 NPD teams and analyzed by the confirmatory factor analysis, correlation and hierarchical regression analysis methods. Findings The authors find that both teams' learning and prove orientations are positively related to their absorptive capacity, which leads to increasing team performance in NPD. Further, the authors find support for the mediating role of team absorptive capacity in connecting team learning orientation and team prove orientation with team performance in NPD. Originality/value The explication of team absorptive capacity is as a key mechanism through which different goal orientations of NPD teams inform the ability to successfully develop new products. By integrating the concepts of team goal orientations, team absorptive capacity and team performance in NPD, the authors seek to gain a better understanding of why some firms are more likely to do better than others in NPD. Findings of this paper extend concept of the nomological network on how absorptive capacity may serve as a direct outcome of different goal orientations. This paper responds to how Chinese firms can increase their innovative performance by infusing their current knowledge bases with external knowledge and extends the literature on knowledge management and managerial ties on innovation.

Keyword ：

Absorptive capacity Goal orientations Mediating effects New product development Team performance

Cite：

Copy from the list or Export to your reference management。

Abstract ：

This study examines the influence of directors who are politically connected and/or have boardroom interlocking on private equity placements (PEPs) in Chinese listed firms. We document that interlocked directors can significantly influence the propensity to apply for PEPs and approval of PEPs and reduce the cost of PEPs while providing greater access to proceeds from PEPs through lowering information asymmetry and information cost. Although politically connected directors have a significant role in the approval of PEPs, they are more likely to reduce the monitoring effects and increase agency problems, which lead to increased cost of PEPs and reduced proceeds from PEPs. The results also reveal that political connection diminishes the benefits of interlocking directors for firms having directors with both interlocking and political ties.

Keyword ：

agency problem information asymmetry and monitoring effect interlocked directors politically connected directors private equity placements

Cite：

Copy from the list or Export to your reference management。

Abstract ：

This paper examines whether information conveyed by private equity placement decisions transfers to non-applying companies within the same industry. In particular, it investigates the impact of a company's announcements of the application for, withdrawal, rejection, approval and completion of private equity placement, while examining the cross-sectional differences of the market performance of their industry counterparts, both in the short- and long-term. It was found that an intra-industry reaction exists; competitors experience a decrease in stock prices in response to the announcement of the application for, approval and completion of private equity placement and an increase in stock prices around the announcement of the withdrawal or rejection of applications. Further, it was found that competitors experience a decrease in their long-term stock performance following private placements. A higher discount on private equity placement is detrimental for private equity (P.E.) issuing companies in the long-term. This study, therefore, provides evidence of the existence of a contagion effect in the long-term while a competitive effect dominates in the short-term.

Keyword ：

Announcement effect China competitive effects competitor firms contagion effects private equity placement regulations

Cite：

Copy from the list or Export to your reference management。

Abstract ：

© 2017, © Emerald Publishing Limited. Purpose: In China, private equity placement (PEP) has become the most important equity refinancing method because most listed firms issue new stocks in this method. However, previous literature has not paid much attention to the impact of political connections on PEP. In this paper, the authors aim to focus on the effect of ultimate ownership types and political connections on approval, approval time, approval results and proceeds of PEP. Besides that the authors also explore the influence of different types and levels of political connections on PEP. Design/methodology/approach: This study investigates the impact of ultimate ownership and political connections of private firms on the approval of PEPs. The authors obtain a final sample of 1,651 private placement events of Chinese-listed firms. To test the hypothesis that the authors developed in this paper, the authors use empirical models from the existing literature about political connections and corporate finance. They establish multiple linear regressions to test Hypothesis 1 and 3 and introduce a logit model to test Hypothesis 2. Findings: First, this study documents that state-owned firms have significant advantages over private firms in approval procedure. Second, political connections seem to help private firms obtain approval of placements from China Securities Regulatory Commission. Third, political connections through government officers are not useful for firms to obtain refinance resources, whereas the connections of being members of Chinese People’s Political Consultative Conference and People’s Congress are the two valuable types of political connections to help private firms obtain approval. Originality/value: This paper has three main contributions to the previous literature. The first contribution is to provide an evidence for the relation between political connections and PEP approval procedures. The second contribution is to provide a comparison between government officer’s connection and social title’s connection. The third contribution of this paper is to reveal the influence of non-disclosed political connection on PEP approval. All the three contributions are important for understanding the relation between political connections and firm refinancial policy.

Keyword ：

Informal mechanisms Political connection Private enterprises Private equity placement

Cite：

Copy from the list or Export to your reference management。

Abstract ：

In contrast with many other countries, Chinese listed firms must obtain approval to make private-equity placements (PEPs) from the Chinese Security Regulatory Commission (CSRC), a state bureau that regulates capital market financing. We analyse the role of political connection (PC) and ownership structures when accessing private equity (PE) market, while investigating the mechanisms through which political ties operate within the regulatory process of PEPs. The findings suggest that PCs do not contribute to the firm's decision to apply for PEPs, but firms with state-ownership demonstrate a higher propensity to apply for PEPs. PC and state-ownership appear to help firms to obtain approval from the CSRC, and these firms are treated more favourably than their rivals without such connections. Politically connected firms spend less time in managing bureaucracy, but PC and state-ownership negatively affect proceeds from the PE market in China. Firms with politically connected directors with professional business backgrounds tend to spend less time managing the CSRC, and these professionals positively affect proceeds from the PE market in China. This study provides important insights for policy-makers, investors, PE issuing firms and security market regulators.

Keyword ：

China ownership structure political connection private equity placement

Cite：

Copy from the list or Export to your reference management。

Abstract ：

This paper investigates the effect of both FS and HR slack together on firm performance and how different levels of these slack resources affect performance of private-owned enterprises (POEs) and state-owned enterprises (SOEs). Hypotheses are tested using a longitudinal data set of 11,985 listed Chinese companies from 2000 to 2009. Findings reveal that the unabsorbed-financial slack and HR slack show an inverse U shape relationship on firm performance for both POEs and SOEs. However, a less-negative interaction occurs for unabsorbed-financial and HR slacks for POEs. The absorbedfinancial and HR slacks also shows an inverse U shape relationship on performance and this relationship does not have a significant negative effect on SOE's performance. The article concludes with theoretical contributions and practical implications of the findings.

Cite：

Copy from the list or Export to your reference management。

Abstract ：

This paper investigates the effect of both FS and HR slack together on firm performance and how different levels of these slack resources affect performance of private-owned enterprises (POEs) and state-owned enterprises (SOEs). Hypotheses are tested using a longitudinal data set of 11,985 listed Chinese companies from 2000 to 2009. Findings reveal that the unabsorbed-financial slack and HR slack show an inverse U shape relationship on firm performance for both POEs and SOEs. However, a less-negative interaction occurs for unabsorbed-financial and HR slacks for POEs. The absorbed-financial and HR slacks also shows an inverse U shape relationship on performance and this relationship does not have a significant negative effect on SOE's performance. The article concludes with theoretical contributions and practical implications of the findings.

Cite：

Copy from the list or Export to your reference management。

Abstract ：

In response to the China Securities Regulatory Commission's regulation of private equity placements (PEP) in 2006, this study investigates the impact of the announcements of PEP applications, withdrawals, rejections, approvals, and completions on the returns of the firms that issue private equity (PE) and the factors that influence market reactions to these announcements. The results show that issuing firms experience stock price responses only to the announcements of PE applications, approvals, and completions. The announcement effect is positively related to the market discount, proceeds from private placements, and private institutional buying and ownership changes; and negatively related to government or government institutional buying and changes in the ownership of management buyers. (C) 2013 Elsevier B. V. All rights reserved.

Keyword ：

China Information effect Investor identity Ownership structure change Private equity placements

Cite：

Copy from the list or Export to your reference management。