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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Collecting large asset managers' capital market assumptions, we revisit the relationships between subjective equity premium expectations, equity valuations, and financial portfolios. In contrast to the well-documented extrapolative expectations of retail investors, asset managers' equity premium expectations are countercyclical: they are high (low) when valuations are low (high). We find that asset managers' portfolios reflect their heterogeneous expectations: allocation funds of asset managers with larger U.S. equity premium expectations invest significantly more in U.S. equities. The sensitivity of portfolios to expectations seems to be muted by investment mandates and is smaller than the one predicted by a standard portfolio choice model. [ABSTRACT FROM AUTHOR]

The literature provides conflicting arguments and mixed results regarding whether capital markets punish managerial myopia. Using managers cutting research and development (R&D) investments to meet short-term earnings goals as a research setting, this study reveals that capital markets penalize managerial myopia, especially for firms with high investor sophistication. Moreover, the negative market reactions to managerial myopia are weaker for firms with overinvestment problems than for those without such problems. Overall, the results support the notion that security markets are not shortsighted. In further analysis, we document that compensation, especially earnings-based compensation, may cause managers to behave myopically. Our study contributes to the literature, reconciling previously mixed findings by capturing managers' myopic behavior in a more targeted way and showing that markets punish myopic R&D cutting. [ABSTRACT FROM AUTHOR]

We examine the association between margin requirements and the market's efficiency in incorporating firm-specific and market-level public news. Combining the Fed's 22 changes in margin requirements with a hand-collected sample of earnings announcements between 1934 and 1975, we show that higher margin requirements induce greater delay in incorporating earnings information into prices. We draw similar conclusions when we analyze the Hou and Moskowitz (2005) price delay measure, as well as indirect measures of leverage constraints over recent years. Further tests suggest that, despite the Fed's expressed intent to curtail excess speculation, higher margin requirements restrict trading by arbitrageurs more than noise traders. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper considers how a manager decides to disclose or withhold segment information in a capital market setting. In particular, we develop a multi-period model in which a manager in each period decides how to allocate her effort between two businesses. The profit earned in each segment is determined by the manager's effort and ability as well as each segment's market profitability and inherent uncertainty. In this setting, in contrast to the expectation of segment disclosure being withheld due to conflicts of interest between managers and shareholders, we identify the conditions under which the manager rationally withholds segment information and achieves higher social welfare. In a setting where the manager is concerned about the current stock price, disclosing more disaggregated information to the stock market does not necessarily lead to more efficient monitoring. The capital market values various segment earnings differently, and in response to this valuation, a rational manager may greatly alter her behavior, leading to inefficient outcomes. [ABSTRACT FROM AUTHOR]

The pace of corporate digital transformation has been accelerating all over the world. This paper investigates the impact of digital transformation on corporate fraud with probit model in Chinese scenario. The results show that the digital transformation of enterprises can help curb the occurrence of fraud in general. However, the heterogeneity test results suggest that the application of digital technology may increase the possibility of some types of fraud as well. Considering possible endogeneity issues, this paper checks the results with the methods of Heckman two-step model and IV probit model and the conclusion remains robust. The empirical results suggest that accelerating the digital transformation of enterprises will help improve the quality of enterprises, optimize the capital market environment, but it is very important to guard against delayed disclosure in digitalization era. [ABSTRACT FROM AUTHOR]

Non-financial information disclosed by firms is an important channel for investors and analysts to understand the operating conditions of firms and a major source of information other than financial data. This study examines the impact of disclosure of forward-looking non-financial information content by listed companies on the information efficiency of the capital market. Using data from A-share listed companies in China's Shanghai and Shenzhen markets from 2007 to 2022, it is found that forward-looking non-financial information content has a positive impact on improving capital market information efficiency, while analysts' attention plays a moderating role. The mechanism study finds that non-financial information disclosure with forward-looking content affects the accuracy of analysts' earnings forecasts, the type of audit opinion, and the degree of financialisation of firms, which in turn have different impacts on the information efficiency of the capital market. The heterogeneity test finds that disclosure of non-financial information with forward-looking content will more significantly improve the information efficiency of the capital market if the listed company receives a high level of media attention, as well as listed companies with higher quality of internal control. This study explores the forward-looking characteristics of non-financial information in depth, enriches the study of information efficiency in the capital market, and provides theoretical suggestions for the content and direction of corporate non-financial information disclosure. [ABSTRACT FROM AUTHOR]

Today, with a growing emphasis on sustainable economic development, corporate environmental, social and governance (ESG) performance is attracting increasing attention and favor from investors. This triggers a question: can good ESG performance of listed companies mitigate the "up and down" of the stock market by drawing investor attention? This paper utilizes the data from China's A-share listed companies from 2011 to 2020, with investor attention as a mediating variable, to explore how the ESG performance of listed companies influences abnormal stock price volatility. The findings suggest that stronger ESG performance of listed companies significantly reduces abnormal stock price volatility, in which investor attention plays a partial mediating role. This paper confirms the robustness of the findings through multiple robustness and endogeneity tests. Heterogeneity analysis reveals that listed companies with good ESG performance during the growth period are more likely to significantly mitigate abnormal stock price volatility. Similarly, firms that maintain commendable ESG performance in bear markets significantly reduce abnormal stock price volatility. These findings enrich the theoretical research on the impact of ESG performance on abnormal stock price volatility, provide empirical evidence for listed companies to emphasize ESG investment and encourage investors to consider ESG ratings. Additionally, the study provides a new perspective for government agencies to utilize corporate ESG performance to maintain the sound development of the capital market. [ABSTRACT FROM AUTHOR]

Purpose: This study analyzes how political-economic events have affected the Brazilian capital market over 13 years by evaluating the abnormal returns of the five most liquid stocks (Top-5). Originality/value: This research proceeds from previous studies by analyzing various political-economic events that impacted, to some extent, the prices of companies listed on the Brazilian Stock Exchange over 13 years. Considering both favorable and opposing evidence to the efficient market hypothesis (EMH), this study provides an original and robust test to evaluate market efficiency, considering various events and companies. Design/methodology/approach: We used the event study methodology to measure the impact of each event on stock prices by using the day before and after the event analyzed. We performed capital asset pricing model (CAPM) estimations with 110 observations before the event to assess abnormal returns. To assess the research hypotheses, we used the average abnormal return test around the event (Window – 1.1). Findings: We found that the five major companies in the Brazilian stock market were efficient in the EMH semi-strong form test despite 13 years of extreme events. Their returns did not change significantly after the events, differentiating themselves from studies that question market efficiency. Therefore, market participants should not expect abnormal returns in similar events. [ABSTRACT FROM AUTHOR]

This study examines the impact of firms' earnings quality on stock price synchronicity, considering the foreign equity ownership to moderate such a relationship. This study argues that firms' earnings quality is firm-specific information that can enhance the stock price synchronicity in the market. The sample used is ASX200 firms in 2017–2019 period, excluding firms in Finance and Utility sectors. The data are collected from the databases FactSet and Morningstar. Using pooled regression analysis, this study shows that out of three market-based earnings quality attributes, timeliness significantly reduces information asymmetry, enhances transparency by impounding more firm-specific information in prices, and ultimately mitigates pricing errors in trading, hence lower stock price synchronicity. It supports prior studies showing that market impound the loss quicky. Meanwhile, conservatism and relevance show insignificant results, emphasizing the superiority of timeliness over other market-based earnings quality in the developed capital market. We discover that foreign equity ownership is not regarded as firm-specific information that reduce the stock price synchronicity. As a moderating variable, the foreign ownership level decreases the impact of timeliness on stock price synchronicity. [ABSTRACT FROM AUTHOR]

The registration-based initial public offering (IPO) system is a pivotal initiative in China's comprehensive capital market reform, but little is known about its effectiveness. Our study aims to explore the impact of the registration-based IPO reform on enterprises' environmental, social, and governance (ESG) greenwashing behaviors. Drawing on data from 2,490 enterprises listed on the Chinese growth enterprise market and the main board of the Shenzhen Stock Exchange during 2012-2022, we find that the registration-based IPO reform significantly aggravates ESG greenwashing with an effect of 0.1696. Building upon this evidence, we explore the underlying mechanism. Peer competition and retail investor sentiment play a partial mediating role and become two channels through which the registration-based IPO reform may aggravate enterprises' ESG greenwashing. Analysts' attention can alleviate the impact of registration-based IPO reform on enterprises' ESG greenwashing while management myopia intensifies it, and they both play a moderating role. Moreover, the aggravating effect of the registration-based IPO reform on ESG greenwashing is more pronounced in enterprises belonging to heavily polluting industries, in the Western region, and with low information transparency. Thus, our findings offer new insights into enterprises' ESG greenwashing behaviors in the context of the registration-based IPO reform. [ABSTRACT FROM AUTHOR]

Due to the unhealthy principal-agent relationships prevalent in state-owned enterprises (SOEs), these enterprises often lack transparency in financial reporting and other critical information. Drawing on signaling theory, this study examines the impact of mixed-ownership reform (MOR) on financial constraints in Chinese SOEs. Using data from listed manufacturing SOEs between 2009 and 2019, we find that every 0.1 increase in the proportion of non-state shareholders, a proxy for MOR intensity, is associated with an average 2.34 ‰ reduction in financial constraints. This mitigation in constraints primarily arises from decreased information asymmetry between enterprises and the external capital market. Specifically, MOR promotes corporate information disclosure, which sends quality signals to investors, while simultaneously reinforcing corporate governance, which projects intention signals to capital markets. Notably, the effectiveness of MOR in alleviating financial constraints is more significant in capital-intensive and information-sensitive industries, as well as in central SOEs. These findings not only highlight the critical role of MOR in alleviating information asymmetry within SOEs, but also provide valuable insights for similar reforms aimed at advancing sustainable development of SOEs in other countries. [ABSTRACT FROM AUTHOR]

The European Union's (EU) ambition is to encourage clearing at EU Central Counterparties (CCPs) and with EU clearing members (CMs). This is to reduce reliance on systemic non-EU CCPs, and to build a more attractive and robust EU clearing market. To achieve this, the European Market Infrastructure Regulation (EMIR) 3.0 requires EU CMs and clients subject to the clearing obligation to hold active accounts at EU CCPs. Although it is very unlikely that the watered-down compromise will fulfil the EU's ambition, more importantly it still risks diminishing the competitive position of EU companies, leading to EU clients who do not fall under the clearing obligation to use non-EU CMs, and directing non-EU clients' euro-denominated interest rate swaps trading activity towards non-EU dealers. This seems contradictory to the policy objective of building a strong EU Capital Markets Union (CMU). With regard to supervision, EMIR 3.0 is a missed opportunity for a centralised supervisory framework. Just enhancing the current decentralised supervision mechanism, which is based on cooperation and information sharing between National Competent Authorities (NCAs), is not enough. A European centralised supervisor will not only strengthen risk monitoring and (eventually) minimise systemic risks but will also reduce supervision costs, the number of procedures, divergent interpretations of EMIR rules and the exchange of data. Whereas the main focus with regard to EMIR 3.0 was geared towards the active account requirement and whether or not to centralise supervision of EU CCPs, regulators and market participants would be ill advised to let discussions over third-country CCP equivalence issues distract them from other important and persistent challenges in the derivatives clearing markets. There are currently three pressing issues that require attention: clearing access and capital rules, portability and clearing models, as well as liquidity and collateral optimisation. A failure to address them risks undermining the key driver for derivatives clearing, which is increasing financial stability. [ABSTRACT FROM AUTHOR]

The functions of the stock market such as investment exit mechanism (IPO), interest incentive and capital allocation are beneficial for corporate to engage in innovation activities with higher risk and longer cycle, but IPO underpricing will hinder the realization of such functions. This paper uses the fixed effect model for empirical analysis and finds that the long-term innovation performance of corporate s with IPO underpricing is poor. Mechanism analysis shows that IPO underpricing corporates will have management myopia, lack of R&D enthusiasm that inhibit corporate innovation. Further analysis shows that the improvement of corporate information transparency and institutional investor field research can alleviate this negative impact can alleviate this negative impact. The conclusion of this paper aims to improve efficiency of the capital market, promote the effective pricing of the capital market, and provide certain reference significance for the relevant policies of the capital market to support the high-quality development of the real economy. [ABSTRACT FROM AUTHOR]

This study examines the distributive and welfare effects of cross‐ownership by firms in a general equilibrium economy on the product and factor markets. The cross‐ownership of equities, such as collusion, tends to be anticompetitive, thereby narrowing the wage gap between skilled and unskilled labor in the short term with the existing number of firms. In the capital market, reducing capital cost through cross‐ownership causes new firms to enter the market in the long term. This firm‐entry effect induced by cross‐ownership through an increase in the number of competitors generates a competitive force that exacerbates wage inequality and reduces welfare in the economy. [ABSTRACT FROM AUTHOR]

General-purpose financial statements prepared under GAAP are for a consolidated reporting entity--a collection of legal entities that includes the parent and any subsidiaries it controls. This reporting model results in a loss of information about the individual legal entities within the consolidated reporting entity. Our study examines the role of parent-only balance sheet information in assessing the credit risk of the parent when it is a bank holding company. We obtain evidence from three trading platforms: credit default swaps (CDS), outstanding bonds, and new bonds. We find that parent-only leverage is useful for debtholders to assess the parent's credit risk even after considering consolidated leverage. Moreover, in CDS markets, parent-only leverage is more useful for firms without downstream guarantee than for firms with guarantee and is less useful for firms with a stronger internal capital market. Our study raises the awareness of parent-only financial information for credit risk assessments. [ABSTRACT FROM AUTHOR]

This paper examines the effect of economic policy uncertainty (EPU) on the Indian capital market using the generalized autoregressive conditional heteroscedastic mixed data sampling (GARCH-MIDAS) approach. This study also disintegrates the Global EPU (GEPU) on its components using identity functions such as up, down, and composite parts dependent on the adjustment in the heading of the EPU and GEPU and tests the linkages among these parameters and the Indian securities exchange instability. Our empirical study shows that GEPU positively and significantly impacts the Indian capital market's volatility. That indicates that the Indian capital exchange volatility will also be unstable when the global economic policy uncertainty is higher. Further, based on the dynamic directions of EPU and GEPU, our results show that, in diverse situations, directional GEPU may present differently in predicting the uncertainty in the Indian capital market. This is primarily so when EPU and GEPU climb in the same period when our approach can obtain more powerful prediction precision. [ABSTRACT FROM AUTHOR]

The innovation of defense industry base requires not only technological progress but also scientific organization and management and reasonable business model. Based on the data of A‐share listed companies related to defense industry base in China from 2013 to 2021, this paper employs panel‐probit model with instrumental variable to empirically test the relationship and influence mechanism of financing efficiency on non‐technological innovation. It is found that the financing efficiency of the defense industry base has a significantly positive effect on organizational innovation and market innovation, which is more prominent in state‐owned enterprises and military enterprises. The influence mechanism is mainly to improve information symmetry and reduce agency costs. Internally, the defense industry base should strengthen the management of financing and innovation activities; from the external point of view, the government needs to improve the construction of capital market, and financial institutions need to play the role of professional institutional investors and external supervisors, which is conducive to improving the non‐technical innovation ability of defense industry base. [ABSTRACT FROM AUTHOR]

We study a publicly traded firm that cares about its short-term stock market performance while collaborating with a privately owned firm in a business alliance. The firms each undertake a relation-specific investment and then bargain over the allocation of the joint surplus generated by the alliance. The public firm's myopic market concerns affect both the total size of the surplus and how the firms divide the surplus. While the public firm always becomes more aggressive and obtains more of the surplus, the total size of the surplus may become larger or smaller, due to the effect of myopic market concerns on the firms' investment incentives. We establish conditions under which the investment and the value of each firm increase or decrease with market concerns. The market concerns could mitigate or exacerbate the hold-up problem between the two firms and thus could either benefit or harm the whole business alliance. We also study two extensions with (i) the two investments being substitutes instead of complements and (ii) both firms being publicly listed. In both cases, the insights from our main model still hold. [ABSTRACT FROM AUTHOR]

We show that over the last two decades, India's effective tax rates (ETRs) have increased by 7.8 percent, which contrasts with the downward trend in ETRs for US firms documented by Dyreng et al. (2017). After controlling for changes in firm characteristics, macroeconomic factors, and tax policy changes, our findings show that ETRs increased by 0.37 percent per year during the sample period. Further, we examine the proposition that public firms are more likely to engage in non-conforming tax management than private firms. We observe a stronger upward trend in ETRs among private firms than public firms, consistent with the capital market pressure hypothesis. The permanent book-tax difference is the primary driver of the ETR trend for both private and public firms. Our findings contribute to the recent debate about the trend in ETRs by undermining concerns regarding rising corporate tax avoidance and reinforcing the argument that improved tax efficiency and economies of agglomeration in countries with large domestic markets contribute to higher ETRs. JEL Codes: G38, H25, H26, H32 [ABSTRACT FROM AUTHOR]

This study investigates the impact of significant wildfires from 2019 to 2022 on nine sectors within the US capital markets, utilizing a dataset encompassing 161 wildfires. Employing a combination of parametric and nonparametric tests, alongside regression analysis, the research scrutinizes how capital markets in distinct sectors respond to wildfire events, revealing nuanced effects. In sectors directly impacted, the insurance industry displays sensitivity to fire costs, with explicit country or event mentions correlating with sustained returns. Conversely, the real estate sector experiences diminished returns during prolonged wildfires, while the forestry and timber industry exhibits heightened sensitivity to fire costs, especially when ignited by lightning. Within indirect impact sectors, the health industry shows vulnerability to fire-related fatalities, with subsequent negative correlations with country mentions. In the food industry, fire costs contribute positively to returns, while duration and size yield negative effects. The transportation industry witnesses a gradual decline in returns, escalating with the number of fire days or associated costs. In resilience and mitigation sectors, utilities demonstrate recovery post-wildfires, contrasting with consistent declines in the energy sector. Among interconnected sectors, the travel and tourism industry sees increased returns tied to the number of victims, with events caused by human actions having a more pronounced impact. This research underscores the significance of tailored risk assessment and mitigation strategies, offering valuable insights for investors and policymakers navigating the intricate relationship between environmental events and financial markets. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between managerial tone in management discussion and analysis (MD&A) disclosures and stock price crash risk. We make a distinction between two types of tone—concave and convex—based on how managers' tone changes according to whether performance is good or bad. Tone is classified as 'concave' ('convex') when managers overstate (understate) bad news and understate (overstate) good news. Using data on Chinese listed firms from 2013 to 2018, we find that convex tone is positively associated with stock price crash risk, and negatively associated with future performance. The positive relationship between convex tone and stock price crash risk is more pronounced for firms with high free cash flow, opaque financial reporting, and non‐stated‐owned enterprises. These results suggest that the use of a convex tone in MD&A may have a negative impact on the capital market. [ABSTRACT FROM AUTHOR]

We investigate the role of financial analysts in product quality failures. Relying on information about product recalls, we first show that analyst coverage on average reduces product quality, particularly when managers face greater short-term pressure from institutional investors. However, after identifying a subgroup of analysts who raise questions on product-related issues in earnings conference calls, we find that coverage by these "product analysts" enhances rather than compromises product quality. Firms with greater product analyst coverage are also more likely to retire low-quality products. Additional analysis demonstrates that product analysts help safeguard product quality by further probing into product-related matters and issuing more timely recommendation downgrades after firms announce product deficiencies. [ABSTRACT FROM AUTHOR]

On 18 November 2021, Paytm, India's leading digital payments and financial services company, went public, but its shares were listed at a surprising 9% discount from the initial price. This underperformance of Paytm's highly anticipated ₹183 billion IPO, the largest in India, stunned the market despite the BSE Sensex index hitting an all-time high in October 2021 with a 50% increase over the previous year. While other unicorns like Zomato (thirty-eight times oversubscribed) and Nykaa (nearly eighty-two times oversubscribed) saw tremendous success in the capital market, Paytm struggled on the stock exchange. This raised questions about why a prominent brand with 3.33 billion customers could not effectively engage with stakeholders and failed to excite investors as Zomato and Nykaa did. Raghavendra Das, a communications consultant seeking to work with Paytm, assessed the company's communication strategy and shared insights with MD and CEO Vijay Shekhar Sharma. The big question now is, what steps should Paytm and Sharma take next? [ABSTRACT FROM AUTHOR]

We study the capital market effects of information centralization by exploiting the staggered implementation of digital storage and access platforms for regulated financial information (Officially Appointed Mechanisms, or OAMs) in the European Union. We find that the implementation of OAMs results in significant improvements in capital market liquidity, consistent with the notion that OAMs lower investors' processing costs. The findings are more pronounced when processing costs are high to begin with, that is, when firms (1) are small and receive low business press coverage and (2) have high levels of retail ownership. We then identify a mechanism through which centralization facilitates capital market effects: information spillovers. First, we find that liquidity improvements are larger when OAMs have features that easily allow investors to search for peer firm information. Second, liquidity improvements are larger for firms with a high share of industry peers operating on the same OAM and for firms with a high share of small, low‐coverage peers on that OAM. Third, around the annual report release dates of peer firms, focal‐firm liquidity improves and focal‐peer stock return synchronicity increases. Overall, our evidence suggests that, even in a modern information age, information centralization improves capital market liquidity and facilitates the acquisition and use of peer firm information. [ABSTRACT FROM AUTHOR]

Catastrophe bonds (cat bond in short) are an alternative risk‐transfer instrument used to transfer peril‐specific financial risk from governments, financial institutions, or (re)insurers, to the capital market. Current approaches for cat bond pricing are calibrated on seismic mainshocks, and thus do not account for potential effects induced by earthquake sequences. This simplifying assumption implies that damage arises from mainshocks only, while aftershocks yield no damage. Postearthquake field surveys reveal that this assumption is inaccurate. For example, in the 2011 Christchurch Earthquake sequence and 2016–2017 Central Italy Earthquake sequence, aftershocks were responsible for higher economic losses when compared to those caused by mainshocks. This article proposes a time‐dependent aggregate loss model that takes into account seismicity clustering and damage accumulation effects in the computation of damage. The model is calibrated on the seismic events recorded during the recent 2016–2017 Central Italy Earthquake sequence. Furthermore, the effects of earthquake sequence on cat bond pricing is explored by implementing the proposed model on five Italian municipalities. The investigation showed that neglecting time‐dependency may lead to higher difference (up to 45%) in the cat bond price when compared to standard approaches. [ABSTRACT FROM AUTHOR]

This study examines the supervision of notaries by the Financial Services Authority in Indonesia's capital market, its implementation, and proposes alternative solutions to strengthen the concept. It provides a comprehensive examination of current supervisory practices, highlighting the effectiveness and challenges of regulatory supervision. The research also proposes alternatives to strengthening the supervisory framework, potentially influencing policy improvements and enhancing governance and integrity of notarial practices. [ABSTRACT FROM AUTHOR]

Copyright of International Journal of Disciplines Economics & Administrative Scienves Studies is the property of International Journal of Disciplines in Economics & Administrative Sciences Studies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: In the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018 considering Capital Gain and Gain from Forex Market (as desirable outputs) and Slippage (as undesirable byproducts) simultaneously, along with Advances – a desirable output considered in the traditional banking performance assessment literature. This enables to have an assessment of performance (as captured by the measured efficiency scores) of Indian Banks following an alternative viewpoint about the banking activities. The authors also explain such efficiency scores in terms of bank-specific factors, banking industry competition scenario and interest rate channel. Design/methodology/approach: Using data envelopment analysis (DEA) method, the authors estimate six alternatives but interlinked operational efficiency scores (TES) of the Indian domestic commercial banks. In the second stage, they explain such TES in terms of bank-specific factors, banking industry competition scenario and interest rate channel. Findings: The authors observe that the private sector banks as a group outperform those under public ownership. Moreover, although the private sector banks could maintain somewhat consistency in their operational efficiency performance over the sample period, public sector banks clearly show a declining tendency. The second stage econometric estimation results show that the priority sector lending has a negative effect on efficiency. Interestingly, the authors get varying results for the relationship between maturity and efficiency score depending on banks' strategies on stressed assets management. Furthermore, the analyses result that banks are not so efficient in managing relatively larger-volume loans. It is also observed that banks' efficiency positively depends on the Credit-to-Deposit (CD) ratio. It is found that the overall operational efficiency of the banks to manage their credit risk portfolio improves with a reduction in the lending rate (LR). However, the interaction of lending activities and capital market shows that with the increase in LR, corporate borrowers may switch to capital market to explore for desired funds, which may induce the banking sector to investment in capital markets and create a positive market sentiment. Originality/value: Literature, although scanty, is there dealing stressed assets of a bank as some undesirable byproducts of its operational and business activities. However, such literature mostly done within the traditional framework of banking business activities and modern market-based business activities are almost absent in the literature. The authors have done it in the present study. [ABSTRACT FROM AUTHOR]

Following the implementation of capital market reforms, Saudi Arabia has opened up its stock market to international investors. This liberalisation has led to the inclusion of the stock exchange into leading global indices, which is expected to lead to an influx of foreign investment. Thus, it is important and timely to examine the efficiency of the Saudi stock market. To that end, this paper conducts a comprehensive investigation of the predictive ability and profitability of a popular trading rule, the moving average rule, using firm-level data for the Saudi stock market over the period 1st January 2008 to 31st December 2017. The results show that the moving average rule has predictive ability; the active rules for a majority of the sample companies outperformed the corresponding passive strategy. Furthermore, the results were economically significant as the rules were profitable even after the consideration of transaction costs. The results also showed that the most profitable moving average rules were those with short-moving average lengths, and that the introduction of a bandwidth, which serves to eliminate weak trading signals, had a positive impact on rule profitability. Importantly, the analysis showed that the most profitable component of the rule related to short selling as these trades resulted in higher profits than the long positions. A disaggregated analysis of sectors showed that the trading rules outperformed the buy-and-hold strategy in all seven industries considered, while the analysis of covariance revealed the importance of careful selection of filter size. Overall, the analysis documents significant inefficiencies in the Saudi stock market and suggests that the employment of a simple trading rule, based on past price data, can yield substantial profits across companies and sectors even in a costly trading environment. These findings suggest that the recent reforms that were implemented to improve the efficiency of the Saudi stock market have been suboptimal, and that further regulatory reform is required. [ABSTRACT FROM AUTHOR]

Copyright of Financial & Business Studies Journal / Maǧallaẗ Al-Dirāsāt Al-Māliyyaẗ wa Al-Tiǧāriyyaẗ is the property of Beni Suef University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The study analyses the impact of financial reputation on the cost of debt financing for Indian companies. In doing so, panel regression analysis is performed using firm-specific data on 395 Indian listed firms covering 2002–2017. The paper uses market capitalization as a benchmark of financial reputation. For robustness check, excess of market value over book value is also used as a proxy of financial reputation. The study found that the reputation of a firm in financial markets plays a vital role in determining the cost of financing. The results provide evidence supporting a significant negative relationship between financial reputation and the cost of debt. The findings provide motivation for corporate managers to invest in reputation-building activities to reduce the cost of borrowing. The relevance of reputation in lowering the cost of debt capital has garnered limited attention, especially in emerging economies like India. This study is a preliminary attempt to link two strands of research in the Indian context: financial reputation and the cost of debt. [ABSTRACT FROM AUTHOR]

Islamic finance (IF) holds significant potential for economic development and the enhancement of financial inclusion in Uzbekistan. Sukuk, as a key Islamic capital market instrument and Shari'ah-compliant investment alternative, plays an important role in this context. However, the demand for sukuk and its determinants are not well understood by policymakers and industry practitioners in Uzbekistan. This study aims to address this research gap by utilizing an ordinal logit model on primary data collected through a survey of 196 individuals from diverse demographic and professional backgrounds, with varying levels of IF and capital market knowledge and experience. The regression results indicate that factors such as prior investment experience, knowledge of sukuk, and a strong inclination toward Shari'ah-compliant investments positively influence an individual's intent to buy sukuk. Conversely, we found that residents of Tashkent (the capital city) are less likely to invest in sukuk compared to residents of other regions in Uzbekistan or those residing abroad. Based on this study's findings, several essential policy and practical recommendations are provided to relevant stakeholders. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We examine whether gender-diverse boards prioritize product market concerns over capital market incentives when proprietary costs are high. We argue that gender-diverse boards protect their firm's competitive edge and maximize long-term shareholder wealth by ethically and carefully maintaining the confidentiality of proprietary information. Due to the reduced disclosure of proprietary information, firms with gender-diverse boards are likely to face more adverse selection when proprietary costs are high. However, the reduced disclosure of proprietary information enables firms with gender-diverse boards to enhance and maintain their competitive edge and gain higher long-term returns. Using a matched sample of the United States-listed companies, we find that firms with gender-diverse boards, relative to similar firms with all-male boards, (1) are associated with higher adverse selection costs and (2) higher long-run stock returns when the firm faces high product market competition. Collectively, our results suggest that firms with gender-diverse boards, which initially experience higher adverse selection in a competitive environment, are rewarded with a net gain of about 10 percent of their stock price in three years. Our research contributes to the literature by highlighting the importance of board gender diversity in fostering the ethical redaction of proprietary information for proprietary cost-based motives as opposed to agency cost-based motives. Our findings have important implications for regulators, firms, and shareholders by identifying gender-diverse boards as an antecedent for the ethical redaction of proprietary information. [ABSTRACT FROM AUTHOR]

The current era is known as the “age of information,” and the capital market is built on information as the economy’s primary engine. The system of financial statements of corporations, which is the most significant source of information used in the capital market, produces an information system called accounting. Fraud and manipulation in these financial statements raise corporate risk, erode investor confidence, and cast doubt on the objectivity of accounting experts. Owing to the significance of fraud, this study aims to offer a way to foretell the likelihood of fraud in the financial statements of businesses admitted to the Tehran Stock Exchange between 2014 and 2021. 180 enterprises listed on the stock exchange make up the statistical sample (532 years of companies - suspected fraud years and 908 years - of non-fraudulent companies). According to the independent auditor’s assessment, the existence of dormant assets and items, the doubting of the assumption of continuity of activity, the presence of tax discrepancies with other tax areas, and the dearth of adequate performance tax reserves led to the selection of the companies suspected of fraud. 96 financial ratios have been compiled by examining the theoretical foundations and research. In this research, the supervised methods of support vector machine, K-nearest neighbor, Bayesian network, neural network, decision tree, logistic regression, random forest and the hybrid method (bagging) have been used. The results of the research showed that the performance evaluation criteria of precision, accuracy, sensitivity, and F-Measure and efficiency (ROC) and the accuracy result of the confusion matrix in the combined method (bagging) were 72.45, 61.21, 64.74, 62.93, 73.50, and 72.45 percent, respectively, which indicates the better performance and greater ability of this method to predict the possibility of fraud in financial statements compared to other proposed methods. [ABSTRACT FROM AUTHOR]

We introduce a new measure of the price charged by financial intermediaries for connecting mortgage borrowers with capital market investors. Based on administrative lender pricing data, we document that the price of intermediation reacts strongly to variation in demand, reflecting capacity constraints of mortgage originators. This positive comovement of price with quantity reduced the pass‐through of quantitative easing. We also find a notable upward trend in this price between 2008 and 2014, likely due to increased legal and regulatory burden in the mortgage market. The trend led to an implicit cost to borrowers of nearly $100 billion over this period. [ABSTRACT FROM AUTHOR]

This review systematically investigates the body of scientific knowledge on value relevance in accounting and reporting fields through a mixed method integrating bibliometric and systematic literature review (SLR) instruments. A dataset of 918 journal articles published from 1996 to 2020 was identified and processed by combining different bibliometric instruments. Findings highlight the most influential articles, journals, authors and countries and the most relevant thematic clusters: IFRS introduction and value relevance of accounting data; Capital market, earnings and equity book values; intangibles and non-financial information; Fair value accounting and goodwill. The main insights from the most relevant contributions were discussed for each cluster. Promising research areas and future research opportunities were also outlined. To the best of the authors' knowledge, this is the first study that integrates bibliometric and SLR instruments to provide a comprehensive outlook of the scientific debate originating from value relevance research. [ABSTRACT FROM AUTHOR]

Environmental, social, and governance (ESG) practices are increasingly recognized as critical for corporate sustainability and market competitiveness, driven by heightened expectations from investors, governments, and consumers. This study examines the evolution of ESG practices among companies listed on the Brazilian Stock Exchange's Corporate Sustainability Index (ISE B3) from 2005 to 2022. We analyzed the index portfolio's composition, focusing on changes in ESG dimensions over time. The only six long-lived companies in this index, from retail, banking, and energy sectors, were selected for in-depth analysis. We further evaluated the quality and consistency of ESG disclosures in company reports. Findings indicate relevant fluctuations in the number of companies included in the ISE B3 and variations in ESG scores for the companies. These variations may be attributed to the voluntary nature of ESG practices and the absence of standard disclosure. This study reveals a lack of homogeneity in ESG reporting, which could be addressed by establishing more straightforward guidelines and global standards. This research underscores Brazilian companies' challenges navigating diverse ESG frameworks to align with evolving societal and environmental expectations. [ABSTRACT FROM AUTHOR]

Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

AbstractSMEs play a crucial role for inclusive development, but their growth is often hampered by lacking access to finance. This paper explores whether capital markets can be harnessed to foster SME finance. Given the negligible use of market-based financing by SMEs, it is analysed to what extent capital market development indirectly alleviates SMEs’ financing constraints by improving their access to loans. Thus, the study builds on the theoretical model by Song and Thakor (2010), which consolidated the view that markets and banks are complementary and co-evolve. Using a modification of the analysis framework by Rajan and Zingales (1998) for 68,712 firm-level observations from 50 mostly low- and middle-income countries for 2006-2019, it empirically investigates the central prediction of Song and Thakor (2010) that capital market development is associated with an increase in bank lending, in particular, towards smaller and riskier firms. I find a positive and significant effect; in support of Song and Thakor (2010), the effect runs through increased capital market usage by financial institutions and expanded loan availability. The findings underline that markets and banks co-evolve and that the most important contribution of capital markets to SME finance is their indirect effect on bank lending and loan availability. [ABSTRACT FROM AUTHOR]

Purpose: This research seeks to identify the key factors influencing the quality of financial information within the context of globalisation and complex commercial transactions.Motivation: In today's globalised environment, trust in financial information is crucial for maintaining market stability and efficiency. Understanding these influencing factors is paramount for sound decision-making by firm managers.Design/Methodology/Approach: A Systematic Literature Review methodology is employed. The investigation examines 50 articles from the SCOPUS and Web of Science databases to identify the key determinants affecting financial information quality.Main findings: The investigation identifies critical factors at firm, country and international levels. Firm-level factors include corporate governance practices, incentives for transparent disclosure and bank monitoring. Country-level influences stem from regulatory frameworks and firm-agent dynamics. Finally, international factors involve competition within capital markets and the degree of a firm's internationalisation.Practical implications: The research provides key recommendations for both firm managers and regulatory bodies. Managers are advised to adopt transparent policies, implement rigorous audit processes and foster a culture of integrity and accuracy. Additionally, strengthening regulatory bodies and supervisory entities is crucial for effectively monitoring financial practices and penalising misconduct.Novelty/Contribution: This research represents a pioneering effort to systematically synthesise factors affecting financial information quality. It provides a comprehensive framework for academics and practitioners, promoting sustainable economic growth and informed decision-making. [ABSTRACT FROM AUTHOR]

Corporate inertia, stemming from a reluctance to adapt and innovate over time, poses significant challenges in the modern business landscape, particularly in capital markets. This study examines the impact of corporate inertia on information assymetry within the Iranian capital market. Employing a comprehensive research approach involving meta-synthesis, Delphi analysis, and questionnaire design, we assess corporate inertia. Questionnaires were distributed to managers of sampled companies, with 138 responses included in the statistical analysis. Information asymmetry is measured using three proxies: bid-ask spread, turnover, and the liquidity of the company's stock. The findings indicate a positive and significant relationship between corporate inertia and information assymetry. Our results suggest that corporate inertia fosters a managerial mindset characterized by insularity and resistance to change. This mindset prioritizes individual insights over stakeholder interests, resulting in a monopolistic control of information disclosure that exacerbates information assymetry in the market. [ABSTRACT FROM AUTHOR]

This paper empirically examines the representation of female venture capitalists (VCs) on boards and how they exert substantial influence on firm innovation performance in China. We first identify a positive association between female VCs' board participation and firm innovation, implying that Chinese female VCs contribute to growing resource commitments and greater success in innovation through quality board services in portfolio firms. We then show that firms with female VC board directors exhibit a lower adverse effect of managerial myopia, capital market pressure, and product market competition on innovation activities. These results are robust to the use of instrumental variable (IV) estimations, subsamples, and alternative variable definitions. [ABSTRACT FROM AUTHOR]

The rapid rise and widespread global adoption of cryptocurrencies in recent years has fundamentally transformed the international financial landscape, with digital assets increasingly being recognized for their potential to influence the stability and performance of traditional capital markets. Against this backdrop, this study aims to empirically investigate the impact of cryptocurrency returns on Islamic vs. conventional stock returns in Gulf Cooperation Council (GCC) countries. The salient distinctions between Islamic and conventional stock markets include fundamental differences in principles, investment allocations, and risk profiles, underscoring the importance of examining the impact of cryptocurrency returns on these distinct equity segments. Daily data were collected from stock indices in five GCC countries over the period 2016–2019, including two sub-periods: before and after the 2017 crypto crash. Pooled OLS, fixed effects, random effects, and generalized linear models (GLMs) were used to analyze the data collected during the study. With the GCC increasingly focusing on cryptocurrency markets, there is growing concern about these markets' potential impact on regional stocks. This study addresses the important questions of whether the impacts of the cryptocurrency market on Islamic vs. conventional stock markets differ throughout the GCC region and how these impacts have evolved since the crypto crash period. The findings reveal that cryptocurrency returns had a negative impact on both GCC Islamic and conventional stock market returns for the full sample period (2016–2019), and the negative effect was far more pronounced for conventional stocks. For the two sub-periods before and after the crash, only the cryptocurrency market and conventional GCC stocks remained negatively correlated, while the cryptocurrency market and the GCC Islamic stock markets became uncorrelated. Thus, for the calmer sub-periods before and after the crypto crash, the rise in cryptocurrency returns may have enticed GCC investors away from conventional stocks, perhaps resulting in a decline in their investment in these stocks. Meanwhile, those who invest in Islamic stocks may not be exposed to this temptation. [ABSTRACT FROM AUTHOR]