Japanese stock market reaction to announcements of news affecting auditors’ reputation: The case of the Olympus fraud

The revelation of accounting fraud by the Olympus Corporation gave rise to shareholder allegations of audit failure against Olympus’ auditors—Ernst & Young ShinNihon LLC and KPMG AZSA LLC—in 2011. In this study, we investigate whether the auditors’ affiliation with Olympus contributes to divergent perceptions of audit quality in the event of news announcements affecting the reputation of Olympus’ auditors. First, we use a nonparametric generalized rank event study methodology on 918 sample firms from the First Section of the Tokyo Stock Exchange (TSE) to observe Japanese investors’ perceptions of auditor reputation as proxied by abnormal returns. Second, we perform a multivariate linear regression on firms’ abnormal returns after controlling for firm-specific variables. We find that Japanese investors do not respond to negative or neutral reputational information arising from news announcements concerning Olympus’ auditors for firms affiliated and not affiliated with those auditors. In the absence of legal penalties imposed on Olympus’ auditors, we argue that Japanese investors consider the Olympus fraud case as an expected occurrence of audit failure due to a lack of evidence suggesting systematic audit failure on the part of Olympus’ auditors and an expectation of lower audit quality in the Japanese capital market. As a result, Japanese investors do not consider news announcements affecting the Olympus auditors’ reputation as sufficient evidence to change their prior expectation regarding the reputations of the audit firms affiliated with the Olympus fraud case.     

基于公司治理视角的媒体监督机制研究

基于公司治理视角对媒体监督机制的研究,不仅有助于扩展法律外制度在公司治理中的应用,而且为管理学、传播学与行为心理学的相互作用研究建立了桥梁。本文先回顾了媒体监督机制的治理效用的相关经验研究,进而通过分析媒体监督的内在作用机理,指出信息挖掘能力、媒体偏度、路径有效性、高管私利与风险偏好这＂五因素＂共同决定了媒体监督治理功能的发挥。     

How the Change of CEO Affects Chilean Companies' Stock Returns

ABSTRACT

This article uses the event study methodology to analyze the effects on Chilean companies' stock returns caused by the change of CEO. We find that when the change occurs after a period of poor performance, it is associated to significant positive abnormal stock returns. In certain cases, the abnormal returns accumulate to 6% over the seven-day period following the announcement. The study also shows that the observed abnormal returns have increased since the market regulating agency obligated companies to communicate changes in top management within three days of their ocurrence.

RESUMEN. Este artículo emplea la metodología de estudio del evento para analizar los efectos que un cambio de CEO provoca en los retornos de las acciones de las empresas chilenas. Descubrimos que cuando el cambio ocurre después de un período de pobre desempeño, el mismo está asociado a importantes retornos positivos anormales sobre las acciones. En algunos casos, los retornos anormales se acumulan en un 6% a lo largo de un período de siete días después del anuncio. El estudio también muestra que los retornos anormales observados han aumentado considerablemente, desde que la agencia reguladora del mercado obligó a las empresas a comunicar los cambios que efectuaban en su alta esfera ejecutiva dentro de los tres días de ocurrida.

RESUMO. Este artigo usa a metodologia de estudo de eventos para analisar os efeitos sobre os retornos de açóes de empresas chilenas causados pela mudança de CEO. Constatamos que, quando ocorre após um período de desempenho fraco, a mudança é associada a retornos de açóes anormais positivos significativos. Em certos casos, os retornos anormais acumulados chegam a 6% no período de sete dias após o anúncio. O estudo também mostra que os retornos anormais observados aumentaram depois que as agências reguladoras do mercado obrigaram as empresas a comunicarem mudanças na alta administraçáo até três dias após sua ocorrência.     

“走出去”企业的国际人力资源战略选择研究

文章从战略性国际人力资源管理的视角，通过对“走出去”样本企业人力资源配置情况的调查研究，探讨“走出去”企业的国际人力资源战略管理问题。总体上看，中国“走出去”企业大多数采用“遵从母制”的国际人力资源战略。从具体东道国情况看，进入发达国家的企业，在研发管理负责人、供应采购负责人和生产技术负责人方面，会偏向录用东道国员工；进入发展中国家的企业，上述三个主要负责人会更多地任用外派人员，也就是录用母国的员工。     

中国企业应对国外反倾销三步曲

反倾销是WTO赋予缔约国抵制不公平贸易行为的主要措施之一,业已成为世界各国极力谋求贸易保护的武器.反倾销既是偶然的,又是必然的.基于当前中国成为世界上最大的反倾销受害者的现实,文章系统提出了应诉国外反倾销的三步曲,即事前未雨绸缪,事中科学应对,事后适应形势.     

基于投入产出视角的浙江省产业结构分析

通过对近年浙江省各产业部门影响力系数与感应度系数的比较计算,发现化学工业、农业等产业在浙江省的经济体系中地位非常重要,属于经济体系中的关键部门,应予以大力发展.在此基础上文章考察了浙江省近几年产业结构演进状况,并通过比照关键部门的发展情况,提出了相对应的政策建议.     

An empirical investigation of environmental performance and the market value of the firm

This paper analyzes the shareholder value effects of environmental performance by measuring the stock market reaction associated with announcements of environmental performance. We examine the market reaction to two categories of environmental performance. The first category includes 417 announcements of Corporate Environmental Initiatives (CEIs) that provide information about self-reported corporate efforts to avoid, mitigate, or offset the environmental impacts of the firm's products, services, or processes. The second category includes 363 announcements of Environmental Awards and Certifications (EACs) that provide information about recognition granted by third-parties specifically for environmental performance. Although the market does not react significantly to the aggregated CEI and EAC announcements, we find statistically significant market reactions for certain CEI and EAC subcategories. Specifically, announcements of philanthropic gifts for environmental causes are associated with significant positive market reaction, voluntary emission reductions are associated with significant negative market reaction, and ISO 14001 certifications are associated with significant positive market reaction. The difference between the market reactions to the CEI and EAC categories is statistically insignificant. Overall, the market is selective in reacting to announcements of environmental performance with certain types of announcements even valued negatively.     

Varying monetary policy regimes: A vector autoregressive investigation

Recently, two stylized facts about the behavior of the U.S. economy have emerged: first, macroeconomic aggregates appear to be less volatile post-1984 than in the preceding 2 decades; second, monetary policy appears more responsive to inflationary pressures – and thereby more “stabilizing” – during the Volcker/Greenspan chairmanships relative to earlier regimes. Does a causal relationship exist between these two observations? In particular, has “better” policy by the Federal Reserve Board contributed significantly to the lessened volatility of the U.S. economy? This paper uses a structural vector autoregressive (VAR) specification to address these questions, examining the advantages and limitations of such an approach. In contrast with much of the existing research on these topics, I find that most of the quantitatively significant changes in volatility are attributed to breaks in the non-policy portion of the structural VAR, and not to the identified policy equation.     

Fiscal expansion, monetary policy, interest rate risk premia, and wage reactions

We examine the macroeconomic implications of fiscal policy in a small open economy, with emphasis on the interactions between fiscal, monetary and labour market policies. The paper uses the NBNZ-DEMONZ macroeconometric model. Novel features of the model are that it includes an endogenous interest rate risk premium (IRRP), and forward-looking monetary and fiscal policy reaction functions which capture the essence of New Zealand's Reserve Bank and Fiscal Responsibility Acts. The most important empirical result is that the postulated IRRP, proxying financial market mechanisms, can contribute at least as much as the monetary policy reaction function to maintaining price stability. Also of significance are that an income tax cuts package shows more damped real GDP and underlying inflation paths than does an expenditure increases equivalent; and that the inflationary and real sector impacts of a personal income tax cut package depend heavily on how the cut is `shared' between firms and workers. The nature and interdependence of monetary and fiscal policies and labour market conditions are therefore crucial to the macroeconomic outcomes.     

理想气体反应不同标准态时热力学函数间关系式的补充

通过理想气体反应等温方程和标准态转换,给出了摩尔反应热力学能、摩尔反应焓、标准摩尔反应亥姆霍兹函数和标准摩尔反应吉布斯函数在等温、等客条件下使用不同标准态时的另一组转换关系式,加上已经给出的在等温、等压条件下使用不同标准态时几个热力学函数间的转换关系式,使这类关系式更全面、完整.对这些关系式的应用条件以及在热化学和基元...