Abacus Pub Date : 2024-05-02 DOI: 10.1111/abac.12322

Kun Tracy Wang, Nathan Zhenghang Zhu, Guqiang Luo

{"title":"Does News Media Affect Firm Innovation in Emerging Markets? Evidence from China","authors":"Kun Tracy Wang, Nathan Zhenghang Zhu, Guqiang Luo","doi":"10.1111/abac.12322","DOIUrl":"https://doi.org/10.1111/abac.12322","url":null,"abstract":"We examine whether and how news coverage affects innovation using an extensive collection of more than 188,000 firm‐specific press articles written by journalists from the most influential Chinese newspapers. We find that news coverage has a positive impact on firm innovation outputs. This positive effect is more pronounced for firms with weak internal governance and external monitoring, opaque corporate disclosure, high R&D intensity, and limited access to financing for innovation, for news articles that are related to innovation and corporate governance, and for news articles that are issued by news media that are subject to less political intervention and by socially unconnected news media. Our analysis of firm innovation strategies shows that the increased innovation outputs are a result of an increase in in‐house R&D investment and innovation efficiency, rather than acquisition of innovation from external channels that can quickly increase quantifiable innovation outputs. We also find that news coverage reduces analyst earnings forecast dispersion and insiders’ tunnelling of corporate resources and managerial perks, while increasing firms’ investor base. Overall, our research provides new insights into the role of the news media in firm innovation in an emerging market, especially when firms have a poor information environment and corporate governance mechanisms, and when news coverage has high informativeness and independence.","PeriodicalId":501337,"journal":{"name":"Abacus","volume":"83 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141017981","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Do Investors Undervalue Female Directors Due to Gender Role Stereotypes? Evidence from the United States 投资者是否因性别角色刻板印象而低估女性董事的价值？来自美国的证据

Abacus Pub Date : 2024-04-19 DOI: 10.1111/abac.12321

Kumari Ranjeeni, Dharmendra Naidu

{"title":"Do Investors Undervalue Female Directors Due to Gender Role Stereotypes? Evidence from the United States","authors":"Kumari Ranjeeni, Dharmendra Naidu","doi":"10.1111/abac.12321","DOIUrl":"https://doi.org/10.1111/abac.12321","url":null,"abstract":"We show that female directors are associated with higher equity undervaluation after controlling for the effects of female managers, firm performance, corporate governance, risk, dispersion in analysts’ earnings forecasts, firm size, stock price informativeness, and earnings quality. This association is less pronounced after increased societal awareness of female directors. Our findings are robust to the use of alternative measures of key variables and various tests of endogeneity. We further find that female directors’ committee membership, committee chair role, board tenure, and board experience are positively associated with equity undervaluation. Additional results show that female directors’ age and ethnicity also impact equity undervaluation, and the undervaluation of female directors mostly occurs for firms operating in male‐dominated industries. Our results collectively suggest that investors’ negative gender role stereotyping of female directors contributes to equity undervaluation of firms with female directors. Negative stereotyping of female directors is less pronounced after investors become more aware of the benefits of female directors. Therefore, our findings provide insights for policy makers and suggests that further increased awareness of the benefits of female directors is essential. Policy makers may also consider taking appropriate actions to further minimize gender stereotyping of female directors.","PeriodicalId":501337,"journal":{"name":"Abacus","volume":"100 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140630073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Asymmetric Tone in Management Discussion and Analysis and Its Impact: Evidence from the Chinese Stock Market 管理层讨论与分析中的不对称语气及其影响：来自中国股市的证据

Abacus Pub Date : 2024-03-27 DOI: 10.1111/abac.12320

Si-Bei Yan, Ahrum Choi, Hyung-Rok Jung, Joonil Lee

引用次数: 0

Is One Head Better Than Two? Dual Leadership and Firm Performance During the COVID-19 Crisis 一个领导比两个领导好吗？COVID-19 危机期间的双重领导与企业绩效

Abacus Pub Date : 2024-03-20 DOI: 10.1111/abac.12319

Md Reiazul Haque, Md Lutfur Rahman, Mohammed Abdullah Al Mamun

引用次数: 0

Does Social Capital Enhance Stock Liquidity? An Investigation of the Resilience of the Trading Environment During a Crisis of Trust 社会资本会增强股票流动性吗？对信任危机期间交易环境复原力的调查

Abacus Pub Date : 2024-02-25 DOI: 10.1111/abac.12318

Robert Faff, Jianning Huang, Pei Shao, Yuchao Xiao, Fuzhao Zhou

引用次数: 0

Evaluation of Fair Value Relevance and Sensitivity to Valuation Assumptions 评估公允价值的相关性和对估值假设的敏感性

Abacus Pub Date : 2024-02-14 DOI: 10.1111/abac.12315

Le Ma, Peter Wells

{"title":"Evaluation of Fair Value Relevance and Sensitivity to Valuation Assumptions","authors":"Le Ma, Peter Wells","doi":"10.1111/abac.12315","DOIUrl":"https://doi.org/10.1111/abac.12315","url":null,"abstract":"This paper evaluates whether the relevance of investment properties measured using Level 3 inputs is impacted by the assumptions underpinning the determination of fair values. Evidence is provided of investors generally finding investment property fair values determined with Level 3 inputs to be relevant, and the values are not discounted in market price. However, this is not the case when there is evidence of firms using optimistic assumptions in the determination of fair values. Specifically, there is a material price discount of recognized investment property values as well as fair value gains for these observations. Our research setting of real estate investment firms has several advantages as these firms typically have as their major assets investment properties whose fair value and rental income can be observed from financial reports. This allows investors to easily infer and compare the key valuation assumptions as captured by the capitalization rate. The implication for more general circumstances where valuation assumptions cannot be inferred from financial reports is that detailed disclosures of assumptions are necessary for users to assess the reliability of fair values determined with Level 3 inputs.","PeriodicalId":501337,"journal":{"name":"Abacus","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139923204","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Commentary on ‘Accounting for Inflation: The Dog That Didn't Bark’ 关于 "通货膨胀会计：不叫的狗

Abacus Pub Date : 2024-02-11 DOI: 10.1111/abac.12316

Richard D. Morris

引用次数: 0

Does Firm‐level Political Uncertainty Affect the Mispricing of Earnings? A Natural Experiment through Government‐to‐business Revolving Door 公司层面的政治不确定性会影响收益的错误定价吗？通过政府对企业 "旋转门 "的自然实验

Abacus Pub Date : 2024-02-11 DOI: 10.1111/abac.12314

Haijie Huang, Edward Lee, Changjiang Lyu, Z. Zhu

{"title":"Does Firm‐level Political Uncertainty Affect the Mispricing of Earnings? A Natural Experiment through Government‐to‐business Revolving Door","authors":"Haijie Huang, Edward Lee, Changjiang Lyu, Z. Zhu","doi":"10.1111/abac.12314","DOIUrl":"https://doi.org/10.1111/abac.12314","url":null,"abstract":"We utilize a unique setting associated with the mandatory closure of the government‐to‐business revolving door to examine whether and how an exogenous rise in firm‐level political uncertainty affects the mispricing of earnings. The tension that underlies our study stems from two opposing effects. To the extent that such uncertainty can trigger opinion divergence (rational attention) among investors, it is expected to delay (accelerate) price discovery and increase (decrease) security mispricing. Our identification strategy draws on the difference‐in‐differences analysis associated with the Chinese regulation in 2013 that mandated the resignation of corporate independent directors with a government background. Consistent with the dominance of the opinion divergence effect, we observe that these involuntary resignations unintentionally increase delays in share price responses following earnings announcements. These findings are more evident among firms that enjoy more benefits from independent directors with a government background. Further analyses confirm that these involuntary resignations trigger more opinion divergence rather than rational attention among investors by showing significant increases in analyst forecast diversity but no changes in analyst coverage following such resignations. We provide novel evidence that market information efficiency could deteriorate as an unintended consequence of the escalation of firm‐level political uncertainty.","PeriodicalId":501337,"journal":{"name":"Abacus","volume":"115 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139785988","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Commentary on ‘Accounting for Inflation: The Dog That Didn't Bark’ 关于 "通货膨胀会计：不叫的狗

Abacus Pub Date : 2024-02-11 DOI: 10.1111/abac.12316

Richard D. Morris

引用次数: 0

Does Firm‐level Political Uncertainty Affect the Mispricing of Earnings? A Natural Experiment through Government‐to‐business Revolving Door 公司层面的政治不确定性会影响收益的错误定价吗？通过政府对企业 "旋转门 "的自然实验

Abacus Pub Date : 2024-02-11 DOI: 10.1111/abac.12314

Haijie Huang, Edward Lee, Changjiang Lyu, Z. Zhu

{"title":"Does Firm‐level Political Uncertainty Affect the Mispricing of Earnings? A Natural Experiment through Government‐to‐business Revolving Door","authors":"Haijie Huang, Edward Lee, Changjiang Lyu, Z. Zhu","doi":"10.1111/abac.12314","DOIUrl":"https://doi.org/10.1111/abac.12314","url":null,"abstract":"We utilize a unique setting associated with the mandatory closure of the government‐to‐business revolving door to examine whether and how an exogenous rise in firm‐level political uncertainty affects the mispricing of earnings. The tension that underlies our study stems from two opposing effects. To the extent that such uncertainty can trigger opinion divergence (rational attention) among investors, it is expected to delay (accelerate) price discovery and increase (decrease) security mispricing. Our identification strategy draws on the difference‐in‐differences analysis associated with the Chinese regulation in 2013 that mandated the resignation of corporate independent directors with a government background. Consistent with the dominance of the opinion divergence effect, we observe that these involuntary resignations unintentionally increase delays in share price responses following earnings announcements. These findings are more evident among firms that enjoy more benefits from independent directors with a government background. Further analyses confirm that these involuntary resignations trigger more opinion divergence rather than rational attention among investors by showing significant increases in analyst forecast diversity but no changes in analyst coverage following such resignations. We provide novel evidence that market information efficiency could deteriorate as an unintended consequence of the escalation of firm‐level political uncertainty.","PeriodicalId":501337,"journal":{"name":"Abacus","volume":"35 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139845624","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

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