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.
Foreign institutional investors’ certification and domestic minority shareholders’ mistrust
Abstract
Using hand-collected data from China's split share structure reform (SSSR) program, we show that foreign institutional investors’ certification mitigates domestic minority shareholders’ mistrust of controlling shareholders’ reform plans and facilitates the implementation of the SSSR. Domestic minority shareholders cast fewer dissenting votes, complete the SSSR more quickly but with lower compensation, and achieve higher stock return reactions in reforming firms with higher foreign institutional ownership. Foreign institutional investors’ prestige is a key factor in aligning domestic minority shareholders toward seeking long-term payoffs. Our work reveals the positive role of foreign institutional investors’ certification in a salient reform of corporate governance.
Total Quality Management & Business Excellence: a 33-year overview using bibliometric and content analysis
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Book review: Riotous Deathscapes
South African Journal of Psychology, Ahead of Print.
The correlation between self-reported sleep quality, anxiety levels, and balance confidence among university students
South African Journal of Psychology, Ahead of Print.
Recently, the incidence of poor sleep quality and anxiety levels has increased among university students. The psychological and physical factors that students commonly experience may also correlate with their ability to balance confidently during daily activities. This study aimed to examine the relationship between sleep quality, anxiety levels, and balance confidence among university students. A total of 217 participants, aged between 18 and 25 years, with no hearing loss or vestibular/balance disorder, no metabolic, neurological, or psychiatric diseases, and no sleep apnea, were included in the study. The Activities-Specific Balance Confidence Scale, Pittsburgh Sleep Quality Index, and Beck Anxiety Inventory were used. Anxiety level and poor sleep quality were negatively correlated with balance confidence (r = −.323 for anxiety, r = −.293 for sleep quality, p < .001). In addition, a moderate positive correlation was observed between sleep quality and anxiety level (r = .504, p < .001). Participants with good sleep quality had higher balance confidence scores than those with poor sleep quality (p < .001). Similarly, those with mild anxiety levels had higher balance confidence scores than those with moderate or high anxiety levels (p = .03). Poor sleep quality, an increase in anxiety, and a decline in balance confidence were interrelated among university students. These findings can aid the development of interventions to improve sleep quality, anxiety levels, and balance confidence among university students, thereby improving their health and wellbeing.
Recently, the incidence of poor sleep quality and anxiety levels has increased among university students. The psychological and physical factors that students commonly experience may also correlate with their ability to balance confidently during daily activities. This study aimed to examine the relationship between sleep quality, anxiety levels, and balance confidence among university students. A total of 217 participants, aged between 18 and 25 years, with no hearing loss or vestibular/balance disorder, no metabolic, neurological, or psychiatric diseases, and no sleep apnea, were included in the study. The Activities-Specific Balance Confidence Scale, Pittsburgh Sleep Quality Index, and Beck Anxiety Inventory were used. Anxiety level and poor sleep quality were negatively correlated with balance confidence (r = −.323 for anxiety, r = −.293 for sleep quality, p < .001). In addition, a moderate positive correlation was observed between sleep quality and anxiety level (r = .504, p < .001). Participants with good sleep quality had higher balance confidence scores than those with poor sleep quality (p < .001). Similarly, those with mild anxiety levels had higher balance confidence scores than those with moderate or high anxiety levels (p = .03). Poor sleep quality, an increase in anxiety, and a decline in balance confidence were interrelated among university students. These findings can aid the development of interventions to improve sleep quality, anxiety levels, and balance confidence among university students, thereby improving their health and wellbeing.
Why are research and practice on operational excellence still far apart? Ecological knowledge management view
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Using machine learning and 10‐K filings to measure innovation
Abstract
The purpose of this paper is to develop and validate a text-based measure of innovation using latent Dirichlet allocation on a sample of 45,409 10-K filings from US listed companies. We expect that the text-based innovation measure is associated with innovation and can be used to measure innovation for companies without patents or significant research and development expenditures. The empirical results are consistent with these assumptions, but reveal that thorough initial testing is required to ensure robustness. This study extends the research on innovation measurement and company disclosures, and provides a new method for assessing innovation using company disclosures.
Can asset‐backed securitisation reduce corporate leverage? Evidence from China
Abstract
Although Chinese regulatory authorities view corporate asset-backed securitisation as a powerful tool for deleveraging, its effectiveness remains unexamined. Employing a look-through approach to data from nonfinancial corporate asset-backed securitisation transactions in China, we identify the actual originators and examine the impact of corporate asset-backed securitisation on their leverage ratios. Regrettably, we find that corporate asset-backed securitisation significantly increases the leverage ratio. This result holds true across both state-owned and non-state-owned enterprises, as well as large-scale and small-scale enterprises. Finally, this study reveals that the effect of corporate asset-backed securitisation on the leverage ratio is partially mediated by internal financing capacity.
The market value of cash holdings from related‐party sales: The role of source of cash flows
Abstract
This paper finds that investors evaluate cash holdings differently based on the source of cash flows. Using cash flows from related-party sales as a proxy for diverse sources, we find that shareholders discount the value of cash holdings for firms with higher cash flows from related-party sales. We find that firms use related-party sales cash flows differently; cash flows from related-party sales are more likely to be retained as internal cash reserves or distributed as dividends, rather than utilised for necessary investments. We further document a negative valuation of investments for firms with more related-party sales.
Decoding task uncertainty: moderating effects on participative budgeting and budgetary slack dynamics
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