We examine the impact of political uncertainty on labour investment efficiency (LIE) a firm. Using sample Chinese firms, we test market discipline and managerial entrenchment hypotheses. Our findings suggest that adversely affects LIE. The results are consistent with hypothesis. That is, firms hire more in period increased information asymmetry due to uncertainty, which deteriorates robust battery alternative measures LIE estimation methods. conduct several additional analyses document...

Many communist countries, such as China, place emphasis on fixed-asset investments in their process of economic development. Governments push the policy using state-owned enterprises (SOEs) via a party committee (CPC). Political and agency costs make SOE investment sub-optimal. We examine impact firm-level CPC control efficiency among sample Chinese SOEs. test problem overhaul political entrenchment hypotheses. The results suggest that control, terms having member director, supervisor, or...

Neuropsychological studies propose that listeners unconsciously assess speakers’ trustworthiness via their facial expressions. Building on this theory, we investigate how investors respond to CEOs’ dynamic hemifacial asymmetry of expressions (HFAsy) shown in CNBC’s video interviews about corporate earnings. Consistent with the neuropsychological prediction induces distrust, document (1) stock market reacts negatively CEO’s HFAsy interview video, and (2) reaction favorable earnings news is...

SYNOPSIS Over the last decade, many firms have shifted from in-house managed information systems to cloud computing arrangements. Despite regulatory interest in audit impact of new technologies, little empirical work has studied how auditors behave when clients introduce platforms into their accounting system. Ex ante, it is unclear whether allows for increased efficiency through reliance on service organization control reports or introduces additional complexity and risk audit. Leveraging a...

This study investigates the impact of firms’ strategic positioning on cost structure. Using textual analysis based 10-K filings, we capture business strategy along three dimensions: product leadership, customer intimacy, and operational excellence. Firms pursuing leadership emphasize innovation confront high congestion risk caused by rapid growth. We find that these firms display a more rigid structure incurring higher fixed investments in R&D choosing committed capacity to reduce risk....

This study investigates the effect of perks on future labor investment efficiency. Agency theory suggests that motivate managers to distort investments for personal gain. By contrast, incentive contract can be a component contracts, encouraging make in best interest shareholders. Based sample 12,818 firm–year observations from 2009 2017, we find are positively related inefficiencies, consistent with agency theory. An exogenous reduction executive caused by 2012 anti-corruption campaign...

ABSTRACT This paper examines diversification and corporate performance relationship in the framework of agency theory. Contrary to most findings from Western developed countries emerging markets, study reports a statistically significant U-shape relationship. The finding is also inconsistent with notion that managerial discretion contributes decision results discount firm value. robustness test confirms these after controlling for other level variables. These conclusions suggest...

Abstract The Shanghai stock market and the Hong Kong were connected by Chinese government in 2014, allowing investors to trade on a group of stocks market. Using difference‐in‐differences approach, we examine how this connection affects corporate innovation mainland China. We argue, find, that enhances informational feedback effect prices involves more‐sophisticated investors' monitoring advising firm management, thereby spurs innovation. further show positive is more pronounced for...

A bstract . This chapter explores a certain line of critical analysis according to which one can proceed undermine the claim that judgments approving freedom, and standards upholding human rights, are culturally relativistic cannot possibly have any universal validity. exploration begins with scrutiny common assumptions about nature culture itself. The author tries demonstrate misunderstandings provided ammunition cultural relativists. Seeking clarity helps strengthen philosophical...

In order to effectively solve the above problems, an automatic extraction method of web text information based on network topology coincidence degree is proposed. Search engine, crawler, and hypertext tag are used classify information, then, dimensionality reduction carried out. After processing, similarity different features page calculated, sorted, similar extracted according correlation segment estimation. The experimental results show that designed can simplify complexity associated data...