We examine the association of self-presentational causal disclosures on earnings-related outcomes in the prospectus of Chinese IPO firms and short-term IPO valuation (offer price-based valuation and IPO first-day underpricing). Using detailed content analysis of causal explanations in the...

This paper examines the effect of corporate risk-taking on the opportunistic earnings management and corporate opacity. Using a large sample of Chinese stocks spanning the period 2007-2015, we find that corporate risk-taking is positively related to both accrual based - and real...

In the past decade, a sizable body of literature has built up on the concept and characteristics of corporate social responsibility (CSR) in Western countries, where it has also been referred to as sustainability. More recently, attention has grown for CSR in emerging countries. Remarkably,...

Nonviable 'zombie' firms have become a key concern in China. Using novel firm-level industrial survey data, this paper illustrates the central role of zombies and their strong linkages with state owned enterprises (SOEs) in contributing to debt vulnerabilities and low productivity. As a group,...

The multitask principal-agent theory argues that incentive devices for the agent tend to be complementary due to the need for balanced allocation of effort among the tasks. A growing body of empirical literature appears to support this notion. However, when there can be several signals for each...

The multitask agency theory argues that incentive devices for the agent need to be viewed as a system to induce balanced allocation of effort among the tasks. This important insight has not been incorporated into the empirical study of CEO compensation. Since there can be several measures for...

This paper examines whether competition pressures enhance firms' incentives to hide profits. By developing a novel empirical procedure to trace out the extent of profit hiding at firm level and applying it to a database that covers more than 20,000 large-and-medium-sized industrial firms in...

The aim of this paper is to examine the relationship between supply network position and firm performance. A-share manufacturing companies listed from 2013 to 2015 are chosen as the initial samples, and large sample supply networks are constructed with relational embeddedness and structural...

Enterprise risk management (ERM) has gradually become a celebrated risk management practice by corporations in the U.S. and worldwide. However, evidence on the value of ERM was mostly from U.S. insurers and other financial institutions. We provide some of the first evidence for the value of ERM...

Of many psychological biases, overconfidence has been described as one of the most powerful. Few studies have focused on collective overconfidence in team decision-making by boards of directors since boards are typically "black boxes". Based on the shared cognition and trickle-down effect, we...