Annual Conference

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Accounting

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May 2025

We study the effect of competition between bond pricing agencies (BPAs) on bias in fair value prices, and whether there is an effect on liquidity in the corporate bond markets. BPAs are agencies in Korea which provide fair value estimates of all OTC-traded products to financial institutions. We use ...
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Japan, an isolated, backward country in the 1860s, industrialized rapidly to become a major industrial power by the 1930s. South Korea, among the world’s poorest countries in the 1960s, joined the ranks of First World economies in little over a single generation. China now seems poised to follow a...
Keywords: Japan, South Korea, China, Big Push, Industrialization, business groups, Developmental State
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2019

We examine the effect of sovereign credit rating downgrades on firms’ earnings management. Using the exogenous variation in credit ratings caused by sovereign rating downgrades from 61 countries, we show that firms reduce discretionary accruals after sovereign downgrades and are likely to experien...
Keywords: Sovereign downgrade, Ceiling rule, Credit rating, Earnings Management, Big bath accounting
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Annual Conference

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Accounting

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May 2025

We address the puzzling finding by Carpenter, Lu, and Whitelaw (2021) that stock prices in the Chinese A-share market are as informative about future earnings as those in the U.S. market. Contrary to their interpretation, we argue that, in the presence of prevalent earnings management and less sophi...
Keywords: Earnings management, price informativeness, non-recurring gain and loss, the Chinese stock market, delisting rule reform
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Annual Conference

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Sustainable and Green Finance

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May 2025

We find evidence that firms engage in earnings management to potentially diminish environmental regulatory attention after the implementation of an automatic air pollutant monitoring system in China. Polluting firms increase their use of discretionary accruals and reduce the informativeness of earni...
Keywords: ESG, Environmental Regulations, Accrual-Based Earnings Management, Corporate Governance, Automatic Monitoring System
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