Competitive pressure from peers, firm sizes and firms' risk-taking behaviours: machine learning evidence

IF 1.1 Q3 BUSINESS, FINANCE

Journal of Accounting Literature Pub Date : 2024-03-27 DOI:10.1108/jal-11-2023-0202

Jinfang Tian, Xiaofan Meng, Lee Li, Wei Cao, Rui Xue

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引用次数: 0

Abstract

PurposeThis study aims to investigate how firms of different sizes respond to competitive pressure from peers.Design/methodology/approachThis study employs machine learning techniques to measure competitive pressure based on management discussion and analysis (MD&A) documents and then utilises the constructed pressure indicator to explore the relationship between competitive pressure and corporate risk-taking behaviours amongst firms of different sizes.FindingsWe find that firm sizes are positively associated with their risk-taking behaviours when firms respond to competitive pressure. Large firms are inclined to exhibit a high level of risk-taking behaviours, whereas small firms tend to make conservative decisions. Regional growth potential and institutional ownership moderate the relationships.Originality/valueUtilising text mining techniques, this study constructs a novel quantitative indicator to measure competitive pressure perceived by focal firms and demonstrates the heterogeneous behaviour of firms of different sizes in response to competitive pressure from peers, advancing research on competitive market pressures.

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来自同行的竞争压力、公司规模和公司的冒险行为：机器学习证据

本研究采用机器学习技术来衡量基于管理讨论与分析（MD&A）文件的竞争压力，然后利用构建的压力指标来探讨不同规模企业的竞争压力与企业风险承担行为之间的关系。研究结果我们发现，当企业应对竞争压力时，企业规模与其风险承担行为呈正相关。大公司倾向于表现出高水平的风险承担行为，而小公司则倾向于做出保守的决策。本研究利用文本挖掘技术，构建了一个新颖的定量指标来衡量重点企业感知到的竞争压力，并展示了不同规模的企业在应对来自同行的竞争压力时的异质性行为，从而推动了有关市场竞争压力的研究。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Accounting Literature BUSINESS, FINANCE-

CiteScore

6.50

自引率

0.00%

发文量

期刊介绍： The objective of the Journal is to publish papers that make a fundamental and substantial contribution to the understanding of accounting phenomena. To this end, the Journal intends to publish papers that (1) synthesize an area of research in a concise and rigorous manner to assist academics and others to gain knowledge and appreciation of diverse research areas or (2) present high quality, multi-method, original research on a broad range of topics relevant to accounting, auditing and taxation. Topical coverage is broad and inclusive covering virtually all aspects of accounting. Consistent with the historical mission of the Journal, it is expected that the lead article of each issue will be a synthesis article on an important research topic. Other manuscripts to be included in a given issue will be a mix of synthesis and original research papers. In addition to traditional research topics and methods, we actively solicit manuscripts of the including, but not limited to, the following: • meta-analyses • field studies • critiques of papers published in other journals • emerging developments in accounting theory • commentaries on current issues • innovative experimental research with strong grounding in cognitive, social or anthropological sciences • creative archival analyses using non-standard methodologies or data sources with strong grounding in various social sciences • book reviews • "idea" papers that don''t fit into other established categories.