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Full-Text Articles in Business
Dual-Class Share Structure And Innovation, Lindsay Baran, Arno Forst, M. Tony Via
Dual-Class Share Structure And Innovation, Lindsay Baran, Arno Forst, M. Tony Via
School of Accountancy Faculty Publications and Presentations
Using a sample of dual-class firms matched with single-class firms possessing similar antitakeover protection, we find a positive association between disproportionate insider control and patent output, quality, creativity, research and development efficiency, and chief executive officer innovative risk taking. We also find, however, that the positive effects of disproportionate control on innovation are concentrated in financially constrained firms and firms in highly competitive industries, and that the positive effects dissipate within 10 years after the initial public offering. Most important, the positive effect of dual-class structures for innovation is conditional on the presence of innovative insiders in the firm. These …
Why Do Employees Commit Fraud? Theory, Measurement, And Validation, Bin Lin, Junqin Huang, Youliang Liao, Shanmin Liu, Haiyan Zhou
Why Do Employees Commit Fraud? Theory, Measurement, And Validation, Bin Lin, Junqin Huang, Youliang Liao, Shanmin Liu, Haiyan Zhou
School of Accountancy Faculty Publications and Presentations
Previous research on corporate governance has extensively explored the motives of corporate fraud. However, this research has paid little attention to employees, the real executors of fraud, resulting in the psychological and behavioral decision-making process of employees who commit fraud in enterprises becoming a "black box" that has not yet been opened. Based on the theory of planned behavior, our study integrates the existing research findings on driving factors of employee fraud and anti-fraud practical experience, extracts the key factors of employee fraud motive, and develops a multidimensional scale of employee fraud motive. The exploratory factor analysis (EFA) generates three …
Free Cash Flows And Price Momentum, Jiajia Fu, Fangming Xu, Cheng Zeng, Lily Zheng
Free Cash Flows And Price Momentum, Jiajia Fu, Fangming Xu, Cheng Zeng, Lily Zheng
School of Accountancy Faculty Publications and Presentations
This study investigates the role of free cash flows and (cross-sectional and time-series) price momentum in predicting future stock returns. Past returns and free cash flows each positively predict future stock returns after controlling for the other, suggesting that cash flows and momentum both contain valuable and distinctive information about future stock returns. A strategy of buying past winners with high free cash flows and shorting past losers with low free cash flows significantly outperforms the traditional momentum trading strategy. The enhanced performance is not sensitive to investor sentiment, time variations, or transaction costs. Further analysis shows that the incremental …