•The digital transformation of enterprises can reduce stock price crash risk.•There is heterogeneity in the impact of enterprise digital transformation on stock price crash risk.•Digital ...transformation reduces the information asymmetry between the internal and external firm.•The results are robust to several tests that address endogeneity concerns.
This study investigates the effect of enterprise digital transformation on stock price crash risk using a sample of Chinese listed companies during the period 2007–2020. We find that the digital transformation of enterprises can significantly reduce stock price crash risk, and shows a certain structural heterogeneity. The above conclusions still hold after a series of robustness tests. Further, we identify that the relationship is more pronounced in high-tech enterprises and economically developed regions. Overall, the paper can provide empirical evidence for understanding how to reduce stock price crash risk in the capital market, and provide relevant implications for better driving the digital transformation of enterprises.
•Time-Frequency comovement among green bonds, stocks, commodities, clean energy, and conventional bonds.•Rolling Window Wavelet Correlation and Wavelet Coherence approaches are employed.•A strong ...evidence that most correlation emerged and reached a peak in the aftermath of GFC 2007-2009.•High diversification benefit of green bonds is significantly revealed due to its low or negative correlation with stocks and commodities.
The paper examines the inter-relationship between green bonds and other asset markets, including stocks, commodities, clean energy, and conventional bonds over 11 years from 2008 to 2019. The dynamic features of correlation across asset pairs over time and in different frequencies are assessed through the rolling window wavelet correlation approach. We find strong evidence that most correlation emerged and reached a peak in the aftermath of GFC 2007-2009. While comovement among stocks, commodities, and clean energy is found relatively high, the diversification benefit of green bonds is significantly revealed due to its low or negative correlation with stocks and commodities.
This paper reviews the accounting literature that focuses on four Internet-related technologies that have the potential to dramatically change and disrupt the work of accountants and accounting ...researchers in the near future. These include cloud, big data, blockchain, and artificial intelligence (AI). For instance, access to distributed ledgers (blockchain) and big data supported by cloud-based analytics tools and AI will automate decision making to a large extent. These technologies may significantly improve financial visibility and allow more timely intervention due to the perpetual nature of accounting. However, given the number of tasks technology has relieved of accountants, these technologies may also lead to concerns about the profession's legitimacy. The findings suggest that scholars have not given sufficient attention to these technologies and how these technologies affect the everyday work of accountants. Research is urgently needed to understand the new kinds of accounting required to manage firms in the changing digital economy and to determine the new skills and competencies accountants may need to master to remain relevant and add value. The paper outlines a set of questions to guide future research.
•We examined the extreme risk transmission of blockchain markets.•Risk spillovers among blockchain markets with strong disconnection of NFTs.•NFTs offer greater diversification avenues with ...substantial risk-bearing potential among blockchain markets.
The high volatility of the blockchain markets has driven the attention of investors and market participants to concentrate on the diversification avenues of NFTs, DeFi Tokens, and Cryptocurrencies. We examined the extreme risk transmission of blockchain markets using the quantile connectedness technique at the median, extreme low, and extreme high volatility conditions. We find significant risk spillovers among blockchain markets with strong disconnection of NFTs. Meanwhile, time-varying features characterized various uneven economic circumstances. Overall, NFTs offer greater diversification avenues with substantial risk-bearing potential among other blockchain markets to shelter the investments and minimize extreme risks.
Accounting and development in Africa Lassou, Philippe J.C.; Hopper, Trevor
Critical perspectives on accounting,
July 2021, 2021-07-00, Volume:
78
Journal Article
Peer reviewed
Open access
Despite accounting being often seen as a crucial ingredient in economic and social development for African countries with pressing needs to meet development challenges (such as alleviating poverty, ...improving sanitation and public infrastructures, increasing literacy, and improving health), research on African accounting and development is often neglected and relegated to the periphery, especially in leading accounting journals. This Special Issue features a variety of works – theoretically, methodologically, and empirically spanning a wide range of countries across Africa, seeking to redress this and provide avenues and questions for further reflection and future research. In particular, the articles in this Special Issue document the role of accounting in Africa across the private, public and third sectors, and how the role is constrained and compromised by the political economy at play in the continent. The constraints and compromises relate to: (1) external actors, namely international financial institutions, Western governments, international accounting standard setters, Western accounting associations pursuing global growth, and the ‘Big 4’ accounting firms; and (2) local actors and circumstances, such as domestic governments, weak regulation, low accounting capacity, and webs of corruption. The reported problems with accounting in Africa appear not to reside primarily in accounting per se, but with how it is conceived, implemented and used to achieve particular interests, mostly at the expense of social, economic and institutional development at the domestic level.
Banks Response to Higher Capital Requirements Gropp, Reint; Mosk, Thomas; Ongena, Steven ...
Review of financial studies/The Review of financial studies,
01/2019, Volume:
32, Issue:
1
Journal Article
Peer reviewed
Open access
We study the impact of higher capital requirements on banks’ balance sheets and their transmission to the real economy. The 2011 EBA capital exercise is an almost ideal quasi-natural experiment to ...identify this impact with a difference-in-differences matching estimator. We find that treated banks increase their capital ratios by reducing their risk-weighted assets, not by raising their levels of equity, consistent with debt overhang. Banks reduce lending to corporate and retail customers, resulting in lower asset, investment, and sales growth for firms obtaining a larger share of their bank credit from the treated banks.
We examine the existence and dates of pricing bubbles in Bitcoin and Ethereum, two popular cryptocurrencies using the (Phillips et al., 2011) methodology. In contrast to previous papers, we examine ...the fundamental drivers of the price. Having derived ratios that are economically and computationally sensible, we use these variables to detect and datestamp bubbles. Our conclusion is that there are periods of clear bubble behaviour, with Bitcoin now almost certainly in a bubble phase.
We examine the nature of information contained in insider trades prior to corporate events. Insiders' net buying increases before open market share repurchase announcements and decreases before ...seasoned equity offers. Higher insider net buying is associated with better post-event operating performance, a reduction in undervaluation, and, for repurchases, lower post-event cost of capital. Insider trading also predicts announcement returns and long-term abnormal returns following events. Overall, our results suggest that insider trades before corporate events contain information about changes both in fundamentals and in investor sentiment.
Abstract
We propose that fund performance can be predicted by its R2, obtained from a regression of its returns on a multifactor benchmark model. Lower R2 indicates greater selectivity, and it ...significantly predicts better performance. Stock funds sorted into lowest-quintile lagged R2 and highest-quintile lagged alpha produce significant annual alpha of 3.8%. Across funds, R2 is positively associated with fund size and negatively associated with its expenses and manager's tenure.
This study examines the role of an inventory tracking and accounting system in the creation of a new market for legal cannabis in the US state of Colorado. Inspired by the empirical setting and the ...work of Deleuze and Guattari, we illuminate different processes associated with the management of flows (of people, aspirations, and things) into, out of, and within the market. Our findings contribute to our understanding of how accounting is implicated in the territorialization of new governable entities. We show how accounting, as a market device, is involved not only in performing economic and other theories, but in populating market spaces with certain elements and not others. Finally, we suggest that our analysis has policy and regulatory implications related to phenomena of contemporary interest such as traceability of global supply chains and the social and economic consequences of tracking and tracing systems.
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