Effect of auditing: Evidence from variability of stock returns and trading volume

Although the benefits of auditing are uncontroversial in developed markets,there is scant evidence about its effect in emerging economies.Auditing derives its value by increasing the credibility of financial statements,which in turn increases investors’reliance on them in developed markets.Financial statement information is common to all investors and therefore increased reliance on it should reduce divergence in investors’assessment of firm value.We examine the effect of interim auditing on inter-investor divergence with a large sample of listed Chinese firms and find that it decreases more for firms whose reports are audited compared to non-audited firms.This finding suggests that investors rely more on audited financial information.Results of this study are robust to variations in event window length and specification of empirical measures.     

Firm-specific information,analysts' superiority and investment value

Using a sample of Chinese security analysts’recommendations from 2005 to2010,we examine the source of analysts’superiority and the investment value of their recommendations.Using a calendar-time portfolio approach,we find that,on average,analysts’recommendations are valuable and that analysts are better at analyzing and transferring firm-specific information than market-wide or industry-level information.In addition,we show that the investment value of recommendations increases as firm-specific information becomes more important in stock pricing.Our empirical results are useful in guiding investors and helping brokerage houses to evaluate the output of research departments.     

Address forms in Chinese audit opinions

Although forms of address are widely used in textual and other types of disclosure,empirical evidence of their effects is rare.China provides a unique setting in which to test the economic consequences of the forms of address used in audit reports.From 2003 to 2011,about 60%of auditors surveyed addressed their clients by their real names in audit opinions,while the others used honorifics.Based on a sample of Chinese audit opinions,I report the following findings.First,the announcement of an audit opinion that uses the client’s real name elicits a greater market response than the announcement of an opinion featuring an honorific form of address.Second,the effects of real-name forms of address are stronger in firms with weak board governance.Third,the association between audit fees and audit risk factors,such as loss-making,is stronger in firms that are addressed by their real names in audit reports.I conclude from these findings that the forms of address used in audit opinions may reveal private information on audit quality.The results of this study are consistent with the power-solidarity effect described by sociolinguists.     

专业英语第七辑 收益途径（三）

The income approach, when applied to a business enterprise, begins with a projection of the income-producing capability of the business. It is based on the assumption that the value of the enterprise is dependent on the ability of all the assets to earn a reasonable return. The first step in the income approach, when applied to a business enterprise, is to estimate the level of earnings that the enterprise is capable of producing in normal operation. But we must be aware that earnings capabili…     

基点价值

Interest-rate risk is one of the most important market risks frequently stated in banks,which is a loss ensuing from an adverse change in the value of interest-rate sensitive assets and liabilities,in consequence of a change in interest rate.The basic components of interest-rate risk may be include:re-pricing,or maturities mismatching risk,yield curve risk,basis value risk,and option risk.Interest-rate risk,which exerts an effect not only on the net interest income but also on the economic val…     

视界·外媒

Wall Street Journal Alibaba, Weibo Prep for IPOs in U.S.
Alibaba and Weibo, two of China＇s biggest Internet companies, are moving to cash in on the red-hot U.S. market for new issues. Alibaba could seek to raise $15 billion, while Weibo filed for a $500 million offering.     

iPhone, New Smartphone Champion in China

The shock wave caused by the Apple iPhone has been spreading from the U.S. to China at an unbelievable rate. Savvy entrepreneurs have been purchasing hundreds of thousands of iPhones in the U.S. and Europe, then ＂cracking＂ the operating system to allow the device to be used on any GSM network. According to China Mobile, there were about 400,000 cracked iPhones using its cellular network service at the end of 2007, representing one out of every 10 iPhone shipments announced officially by Apple. We have never doubted that the iPhone will achieve greater success than iPod in China if Apple teams with China Mobile to launch its Chinese version. There are two reasons. Firstly, different from the U.S. where the smartphone market is fairly limited, appealing primarily to business users, the smartphone market in China, though, is an entertainmentoriented individual consumer market,     

Independent directors' board networks and controlling shareholders' tunneling behaviorq

As one of the channels by which board directors build important relationships,board networks can affect the governance role of independent directors. Defining director board networks as their connections based on direct ties they establish when serving on at least one common board, this paper explores the role of the network centrality of independent directors in restraining tunneling behavior by controlling shareholders in the Chinese capital market.Our empirical evidence shows that tunneling behavior by controlling shareholders is negatively related to the network centrality of independent directors and that this relationship is stronger when non-operating fund occupation is used as the measure of tunneling. The results of our study show that board networks can help independent directors to restrain tunneling behavior by large shareholders, which plays a positive role in corporate governance.ó 2013 Production and hosting by Elsevier B.V. on behalf of China Journal of Accounting Research. Founded by Sun Yat-sen University and City University of Hong Kong.     

Dose Executives’ Equity Ratio Affect the EVA Assessment in Central Enterprises?

Since 2010, the State-owned Assets Supervision and Administration Commission of the State Council (hereafter SASAC) started the full implementation of the EVA evaluation system in central enterprises. Our research finds out that the central enterprises have obvious acted to meet the EVA assessment, that is, executives intentionally regulate major EVA adjustments to gain a higher EVA performance. We also find that the factor of shareholding rate of executives may in some extent weaken the effect of the EVA assessment and there shows a U-shaped or inverted U-shaped relation between shareholding rate and each adjustment indicator.     

央企是否迎合了EVA考核?——基于高管持股因素影响的研究(英文)

Since 2010, the State-owned Assets Supervision and Administration Commission of the State Council (hereafter SASAC) started the full implementation of the EVA evaluation system in central enterprises. Our research finds out that the central enterprises have obvious acted to meet the EVA assessment, that is, executives intentionally regulate major EVA adjustments to gain a higher EVA performance. We also find that the factor of shareholding rate of executives may in some extent weaken the effect of the EVA assessment and there shows a U-shaped or inverted U-shaped relation between shareholding rate and each adjustment indicator.     

Asian Financial Cooperation as Seen From Europe

In fact, I am convinced that steps to promote the Asian bond market have the potential to make a contribution to monetary and financial cooperation in Asia that goes beyond simply deepening and enhancing the efficiency of today's bond markets. Let me explain what I have in mind by looking at Asian monetary cooperation through the European rear-view mirror. In doing so, I will first make some broad-brush comparisons between Asian and European developments and then present some observations on the forces that, in my mind, have driven the process of cooperation in Europe - leaving it to you to decide whether a similar development could be expected in Asia.     

Analysis of Pecking Order Theory on Chinese Listed Companies

This study tests the order of firms’ financing choices based on a sample consists of 150 Chinese listed companies. And it indicates that China’s listed companies did not follow the theoretical ‘Pecking Order’ （Myers,1984）, but a ‘new order’— internal fund, equity, and debt — to make their financial choices. This is because firm’s gearing ratio and solvency did not show a high degree of correlation in China’s capital market, which leads to the preference of using equity. Besides, there are some other reasons： low cost of issuing equity, ineffective financial management, immaturity of capital market, not well developed bond market, and lack of an effective credit rating system.     

中部地区利用外资承接产业转移的博弈分析(英文)

FDI is crucial to macroeconomic development of a region. The paper analyzes the FDI utilization performance of the central regions in recent years. It points the adverse effects out that the local central governments regard preferential policies as the main means to attract FDI. We use static game theory and dynamic game with complete information to analyze preferential policy strategy of the central region, thus obtaining its pragmatic impacts on FDI attraction. On this basis, some policies and recommendations are given to improve the means of FDI attraction to ensure that local governments achieve mutually beneficial results.     

Lifting Limits on Market Access and Operation of Foreign Investment Enterprises in Beijing

The municipality lifts limits on market access and operation of foreign investment enterprises in Beijing so that the foreign investors don't need to submit a credit certificate for registration any longer.     

Inflation,operating cycle,and cash holdings

A corporate cash-holding strategy is a trade-off between the costs and benefits of holding cash.At the macrolevel,firms are inclined to adjust and optimize their cash-holding strategies in response to changes in purchasing power due to inflation.At the microlevel,the operating cycle,which indicates the speed and turnover of corporate cash flow,also influences the corporate cash-holding strategy.Firms flexibly adjust their cash-holding strategies in response to changes in the internal and external environment,which is referred to as the cash adjustment strategy.We examine these predicted relationships using a sample of listed firms in China’s stock market over the 1998–2009 period.Consistent with our predictions,the empirical results indicate a significant negative association between cash holdings and the CPI,but the relationship is reversed when the CPI reaches a certain level.There is also a U-shaped relationship between operating cycle and cash holdings,and this relationship is similarly influenced by changes in the inflation level.In examining the macroeconomic environment and microlevel firm-specific characteristics simultaneously,our findings supplement the literature on firms’cash-holding strategies and provide theoretical and practical implications.     

M＆A Activity Slows in 4Q

The fourth quarter proved to be the best quarter for US venture-backed companies to achieve public market exits in2006, with 18 initial public offerings （IPOs） completed--according to the Quarterly Liquidity Report from Dow Jones VentureOne. The IPOs raised an aggregate total of $1.23 billion.     

浅谈影响企业的行为关键因素(英文)

This essay would analyse the key points of the entrepreneurial behaviour and explain why these factors become the import ones and how we should apply with them to become the successful entrepreneurial. Wickham (2004) declaimed that the roles of the personality factor, the resources and the marketing strategy are all the factors that influenced the entrepreneurial process and there are three factors that are the most important ones than others which influenced entrepreneurial behaviour. The essay would base on his theories and use a lot of actual examples to support his views and assay the actions offered by the entrepreneurial and discuss some different views of the opinion.     

Greentech Monthly Strong Demand, Stable Pricing

The recurring theme that came across during this month is that demand is very strong globally, especially in Germany and Spain, leading to a stable pricing environment throughout the value chain, with polysilicon prices continuing to rise. We have also picked up that demand in the Greek market is ramping up; however; Italy appears off to a slow start. We were discouraged to hear that major system integrators in the United States were seeking overly aggressive pricing from module manufacturers relative to other areas globally. In general, it appears that the Chinese module makers are treading into the United States very cautiously. In particular, it appears the system integrator winners of the Wal- Mart solar RFP are looking for gross margin break even pricing for modules in exchange for allowing module makers to advertise that they are a part of the installation.[第一段]     

Why China Needs To Develop A Bond Market

Most Asian economies long have depended on bank financing,and to a lesser extent, on the equity markets, to fund investments. Except for countries like Singapore,Malaysia and a few other more developed Asian economies, corporate bonds are almost unheard of in the region. But bonds and bond markets are at least as important, if not more so, than stock markets, for the efficient allocation of a nation‘s resources. In major economies,     

Prepaid Guarantee Deposit and Prepayment Required for Beijing Projects Bid Invitation

In order to standardize the construction bid invitation market and activities, Beijing Municipal Construction Commission prescribed that the system of prepaying guarantee deposit and the prepayment system will be implemented this year. Namely, the construction unit must have a special project account before starting work. The bid inviter must deposit the amount less than 30% of the total contract price in the account which can pay the delayed money.