scholarly journals Effect of Equity Incentive on Inefficient Investment in Chinese State-owned Enterprises

2016 ◽  
Vol 8 (8) ◽  
pp. 222 ◽  
Author(s):  
Liu Yan
Keyword(s):  
Stock Market ◽  
Listed Companies ◽  
Chinese Listed Companies ◽  
Chinese State ◽  
The Impact ◽  
Equity Incentive

<p>This study examines the impact of equity incentive on inefficient investment based on the sample of Chinese listed companies of Shanghai stock market. I show that: both of over-investment and under-investment are existed among state-owned enterprises, the level of under-investment is worse than the level of over-investment, equity incentive is not that popular among state-owned enterprises; equity incentive can limit over-investment as well as under-investment significantly, so universality of equity incentive among state-owned enterprises needs to be improved.</p>

The impact of shareholding structure on firm investment: Evidence from Chinese listed companies

2013 ◽  
Vol 25 ◽  
pp. 85-100 ◽  
Author(s):  
Alex A. Chen ◽  
Hong Cao ◽  
Dayong Zhang ◽  
David G. Dickinson
Keyword(s):  
Listed Companies ◽  
Firm Investment ◽  
Chinese Listed Companies ◽  
The Impact

Innovation-Supporting Effect of Government Versus Private Venture Capital: Evidence from Chinese Listed Companies

2020 ◽  
Vol 19 (3) ◽  
pp. 245-281
Author(s):  
Xiaohui Tao ◽  
Yang Li
Keyword(s):  
Venture Capital ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Threshold Effect ◽  
Listed Companies ◽  
Threshold Test ◽  
Chinese Listed Companies ◽  
Enterprise Innovation ◽  
Private Venture ◽  
The Impact

Abstract Venture capital (VC) can promote the innovation of invested enterprises through financial support, social networking, and intellectual capital. Based on data of Chinese listed companies from 2003 to 2016, this study, firstly, compares the impact of government and private VC on enterprise innovation using Possion regression, and applies the ITCV method and Negative Binomial Regression for Robustness Examination, then, explores the relationship between their shareholding percentage and enterprise innovation with threshold test. The results show that: the performance of private VC is significantly positive and in line. With the increasing shareholding percentage of private VC, the innovation of invested enterprises increases. The overall performance of government VC, however, is not significant, and the shareholding percentage of government VC also has no significant impact on the innovation of invested companies. Additional testing revealed that a “threshold effect” however exists in the impact of the shareholding percentage of government VC on innovation: within a certain range, the higher the shareholding percentage, the more significant the impact on innovations becomes, but beyond that range, the percentage is inversely related to innovation.

scholarly journals How Does A Firm’s Previous Social Network Position Affect Innovation? Evidence from Chinese Listed Companies

2019 ◽  
Vol 11 (4) ◽  
pp. 1191 ◽  
Author(s):  
Xuan Wei ◽  
Wei Chen
Keyword(s):  
Social Network ◽  
Time Lag ◽  
Listed Companies ◽  
Negative Binomial Regression Model ◽  
Short Term ◽  
Network Position ◽  
Chinese Listed Companies ◽  
Lag Structure ◽  
The Impact ◽  
Social Network Position

The impact of social network position on innovation has been widely confirmed in past studies. However, research on the time-lag structure of the impact is still insufficient. Within the time window 2010 to 2017, this study constructs a two-mode social network between Chinese listed companies and other participants. To analyze the lag structure of the effect of social network position on innovation, this study uses a panel negative binomial regression model transformed by the Almon polynomial. The results show that a firm does need an advantageous past social network position for innovation. Previous local and global centrality in a social network has a different influence on innovation. For the local centrality indices, degree centrality has a positive impact in the short-term, but has a negative impact in the long-term; the impact of betweenness centrality is not significant in the short-term and is negative in the long run. For the global centrality indices, closeness centrality has a positive influence that decreases with the increase of the time-lag. At the same time, using the method of necessary condition analysis (NCA), this study calculates the bottleneck for a given innovation level. Finally, based on these research conclusions, the theoretical implications and management practice implications are summarized.

scholarly journals The Impact of CSR and Financial Distress on Financial Performance—Evidence from Chinese Listed Companies of the Manufacturing Industry

2020 ◽  
Vol 12 (17) ◽  
pp. 6799 ◽  
Author(s):  
Liu Wu ◽  
Zhen Shao ◽  
Changhui Yang ◽  
Tao Ding ◽  
Wan Zhang
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Listed Companies ◽  
Research Database ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Corporate Social ◽  
The Impact

This paper explores the impact of corporate social responsibility (CSR) and financial distress on corporate financial performance (CFP) in Chinese listed companies of the manufacturing industry. Covering a total of 1445 manufacturing observations from 2013 to 2018 by matching the China Stock Market & Accounting Research Database (CSMAR) and Ranking CSR Ratings (RKS) database and regression models, we find that CSR has a significant positive impact on CFP, and the relationship is more pronounced for firms that are more stable. Further, the win-win relationship of CSR and CFP is also stronger in state-owned enterprises (SOEs). These empirical results suggest that enterprises should actively embrace CSR in response to the call of the country. At the same time, corporate stability should be increased to enhance the role of CSR in promoting CFP. We provide a quantitative analysis of the CSR, CFP, and financial distress of listed firms, and help to alleviate managers’ concern of CSR fulfillment and risk control.

An Empirical Study of Equity Incentive on the Stock Valuation of Tobacco Companies

2021 ◽  
Vol 7 (5) ◽  
pp. 2392-2400
Author(s):  
Chen Huaitao ◽  
Deng Yanhong
Keyword(s):  
Positive Impact ◽  
Reference Value ◽  
Listed Companies ◽  
Stock Valuation ◽  
Cross Sectional ◽  
Equity Incentives ◽  
Regulatory Commission ◽  
The Impact ◽  
Equity Incentive ◽  
A Share

Objectives: Since the China Securities Regulatory Commission (CSRC) issued the Measures for the Administration of Equity Incentives of Listed Companies, the equity incentives of A-share listed companies have become normalized, the discussion of the effect of the implementation of equity incentives on stock valuation can provide a reference for investors whether to choose listed companies with equity incentives for stock valuation. This paper uses python tool to select 30 A-share listed companies that formally started to implement equity incentives in 2018 and the proportion of equity incentives is between 4% and 6% as the sample, and uses cross-sectional data model for empirical analysis. The empirical results show that: first, the implementation of equity incentive in Chinese listed companies has a positive impact on stock valuation, and the impact of equity incentive on stock valuation is significantly better than that before implementation, and the incentive stocks have more investment value; Second, the conclusion is also suitable for Chinese tobacco related companies, which has important reference value for tobacco preference investors.

A financial restatement, media attention and stock idiosyncratic risk in the Chinese stock market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haiyuan Yin ◽  
Meng Sun
Keyword(s):  
Stock Market ◽  
Listed Companies ◽  
Idiosyncratic Risk ◽  
Content Type ◽  
Financial Restatement ◽  
Media Attention ◽  
Media Reports ◽  
The Impact ◽  
The Relationship ◽  
Accounting Errors

PurposeThis paper aims to enrich the scope of the influence of media reports on the stock risk, and it also provides a path to support the research on the relationship between media reports and idiosyncratic risks in the stock market.Design/methodology/approachThe authors select financial restatement samples of listed companies in China from Jan 2015 to Dec 2017 to explore the impact of the financial restatement on the idiosyncratic risk of stocks. Further, the financial restatement that has more media attention may play a more significant role in promoting the idiosyncratic risk.FindingsThe authors found that the financial restatement of listed companies has a significant positive effect on the idiosyncratic risk of stocks. Specifically, the idiosyncratic risk changed five months before the restatement. After the restatement, the idiosyncratic risk increased by 83.47 in five days then decreased slowly, which lasted about one year. The restatement caused by sensitive issues and legal issues has a greater impact on the idiosyncratic risk. Both current restatement and delayed restatements will increase the idiosyncratic risk of stocks, but the impact of the latter is higher than the former.Research limitations/implicationsPossible deficiencies in the paper are that the number of restatements caused by major accounting errors is low. Therefore, no regular conclusions were drawn on the impact of the financial restatement caused by major accounting errors.Practical implicationsThe conclusions provide a basis for targeted supervisory measures on the restatements of listed companies. The increase in financial restatements is closely related to the lack of governance mechanisms in the stock market. For investors, although the mystery of idiosyncratic volatility exists significantly in the market, the company's valuation level will affect the relationship between the idiosyncratic risk and expected return. Investors should pay attention to the intrinsic value of the company and should not blindly pursue stocks with a low idiosyncratic risk.Originality/valueThese conclusions may enrich the scope of the influence of media reports on the stock risk and also provide a path to support the research on the relationship between media reports and idiosyncratic risks in the capital market.

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