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Review of Quantitative Finance and Accounting OnlineFirst articles

20.02.2024 | Original Research

Hedge fund activism and corporate intangible capital investments

We examine the impact of activist hedge fund campaigns on corporate Intangible Capital (IC) investments, a key determinant of corporate long-term growth and performance. We document that post-activist campaigns, targeted firms reduce IC …

verfasst von:
Christof Beuselinck, Luc Desrousseaux

09.02.2024 | Original Research

Stock price crash and information environment: Do CEO gender and financial expertise matter?

This study examines the effect of stock price crash on the information environment. We further investigate the effect of female and financial expert CEOs on the stock price crash and information environment nexus. Employing one of the largest …

verfasst von:
Ammar Ali Gull, Ammar Abid, Duc Khoung Nguyen, Muhammad Usman, Rizwan Mushtaq

Open Access 08.02.2024 | Original Research

Macroeconomic uncertainty and earnings management: evidence from commodity firms

This study examines the relationship between macroeconomic uncertainty and earnings management, using quarterly data of US commodity firms from the period 1990–2019. The findings show that oil and iron firms use both accruals and real activities …

verfasst von:
Alessandro Paolo Rigamonti, Giulio Greco, Mariarita Pierotti, Alessandro Capocchi

04.02.2024 | Original Research

Breaking the Big Four brand’s halo effect precisely: evidence from the association between RMM coverage ratios and integrated audit effectiveness

This research examines what proportion of Big Four auditors underperform in integrated audit settings and why. Incorporating the inverse relation between detection risk and assessed risk of material misstatement (RMM) per the classic audit risk …

verfasst von:
Dong Drew Li, Wenguang Lin, Pei-Yu Sun, Yunshu Tang, Zheng Cheng

04.02.2024 | Original Research

Perk consumption and CEO turnover

This study examines the relationship between perk consumption and forced CEO turnover. The results based on Chinese firms indicate that the likelihood of forced CEO turnover increases with excess perk consumption by executives. The positive effect …

verfasst von:
Yifan Zhan, Hung-Gay Fung, Wai Kin Leung

02.02.2024 | Original Research

External social networks and tax avoidance

We investigate the role of external social networks in corporate tax strategies. Using data on Taiwan-listed nonfinancial firms from 2004 to 2022, we construct executives’ external social networks by measuring their ties with the directors or …

verfasst von:
Chih-Liang Liu, Junmao Chiu

01.02.2024 | Original Research

Syndicated loans: mapping the trends, sources and intellectual evolution

This study conducts a citation-based comprehensive systematic literature review (SLR) of the syndicated loan market by identifying and recognizing the sources of knowledge-producing leading articles, journals and authors in this area. In total, we …

verfasst von:
Mohammed Saharti, Sajid M. Chaudhry, Nisar Ahmad, Syed Mujahid Hussain

30.01.2024 | Original Research

You scratch my back and i scratch yours: evidence from relationship-based bidding in IPO auctions

Using a dataset of institutional bids for IPOs, we study how relationships with lead underwriters impact institutional investors’ bidding strategy in the auctioned IPOs. Our paper finds that strong business ties lead to higher bid prices. The …

verfasst von:
Wenjun Wang

20.01.2024 | Original Research

The impact of political uncertainty on the cost of capital

We investigate the impact of political uncertainty on the relationship between foreign equity portfolio flow and the cost of capital. Using panel data from 40 countries from 2001 to 2016, our results show that the year before a national election …

verfasst von:
Frank Kwabi, Andrews Owusu, Ernest Ezeani, Agyenim Boateng

20.01.2024 | Original Research

Social media disclosure and reputational damage

We provide new evidence on the effects of social media in the context of a financial scandal using a sample of banks that were accused of manipulating the London Interbank Offered Rate (LIBOR). We find that increased bank Twitter activity when the …

verfasst von:
Xing Huan, Antonio Parbonetti, Giulia Redigolo, Zhewei Zhang

Open Access 20.01.2024 | Original Research

Military directors and stock price informativeness: What's all the fuss about?

Exploiting a unique hand-built dataset, belonging to non-financial firms, operating in an emerging economy, this study, first of its kind, reports that stock prices of firms with military-experienced board of directors reflect more firm specific …

verfasst von:
Tasawar Nawaz, Tahseen Nawaz

16.01.2024 | Original Research

Public access to in-house meeting reports and stock liquidity: evidence from China

In this study we analyze the impact of a regulatory change in disclosure on private in-house meetings on stock liquidity. In July 2012, the Shenzhen Stock Exchange (SZSE) in China required that all listed firms publish a summary report for each …

verfasst von:
Hanyu Zhang, Rong Ding, Hang Zhou

13.01.2024 | Original Research

An improved criterion for almost marginal conditional stochastic dominance

We contribute to redefining the criteria based on Almost Stochastic Dominance for better portfolio comparison in four ways. First, we refine the first order of Marginal Conditional Stochastic Dominance (Yitzhaki and Olkin in Concentration indices …

verfasst von:
Wei-Han Liu, Jow-Ran Chang, Guo-Jun Yang

10.01.2024 | Original Research

Corporate investment decisions with switch flexibility, constraints, and path-dependency

We model sequential, corporate investment decisions with time-to-build delays, operating scale mode switching, operating constraints, and path dependencies. We also account for stochastic salvage (abandonment) values that are utilization (path) …

verfasst von:
Spiros H. Martzoukos, Nayia Pospori, Lenos Trigeorgis

30.12.2023 | Original Research

Audit committee equity incentives and stock price crash risk

This paper theoretically and empirically investigates whether and how audit committee (AC) equity incentives affect future stock price crash risk. Consistent with our model prediction that equity incentives for ACs contribute to reducing the …

verfasst von:
Zhe Shen, Haili Li, Norvald Instefjord, Xinming Liu

23.12.2023 | Original Research

Research note: An investigation of the relation between pre-IPO dividends and vendor sales

In contrast to post-listing dividend initiations, the corporate finance literature offers limited coverage of pre-IPO dividends. The present inquiry assesses IPOs in Hong Kong where both pre-listing dividend distributions and IPO vendor sales …

verfasst von:
Paul B. McGuinness

19.12.2023 | Original Research

The externality of politically connected directors’ resignations on peers’ cost of debt

Using a sample of Chinese listed firms from the Shanghai and Shenzhen Stock Exchanges from 2012 to 2018, we investigate the externality of the forced resignations of politically connected independent directors on the cost of debt for non-connected …

verfasst von:
Ting Liu, Shaoqing Kang, Lihong Wang

14.12.2023 | Original Research

Realized higher moments and trading activity

This study investigates the informativeness of realized higher moments of stock index returns, namely, realized skewness and kurtosis, in explaining trading activity in the futures market to investigate whether information flows from price risk to …

verfasst von:
Shu-Fang Yuan

11.12.2023 | Original Research

Optimal dividend decisions with capital infusion in a dynamic nonterminal bankruptcy model

We develop a stochastic dynamic model of dividend optimization under the conditions of a positive recovery, in which shareholders can recover a portion of their capital, and nonterminal bankruptcy due to private capital infusion or government …

verfasst von:
Shu Zhang, Peimin Chen, Chunchi Wu

Open Access 11.12.2023 | Original Research

CEO power and corporate strategies: a review of the literature

In recent years, the impact of chief executive officers (CEOs) power on corporate strategies has attracted significant public debate in the academic milieu. In this study, we comprehensively review the academic literature on CEO power in relation …

verfasst von:
Sanjukta Brahma, Fotini Economou