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Earnings Quality And Stress Levels Of Chinese Listed Companies, Feng Li, Indra Abeysekera, Shiguang Ma
Earnings Quality And Stress Levels Of Chinese Listed Companies, Feng Li, Indra Abeysekera, Shiguang Ma
Shiguang Ma
This paper investigates the relation between earnings quality and stress levels of Chinese companies listed in Shanghai and Shenzhen stock exchanges from 2003 to 2007 by classifying them as financially stressed and bankrupt (SB), financially stressed and not bankrupt (SNB), and not financially stressed and not bankrupt (NSNB) firms. We measure the earnings quality by four separate attributes: accruals quality, earnings persistence, earnings predictability, and earnings smoothness. We find that earnings quality levels are parallel to firm's stress levels: the SB firms have the lowest earnings quality measured by each of the four earnings attributes, the SNB firms have a …
Political Connections, Founder-Managers, And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary Tian
Political Connections, Founder-Managers, And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary Tian
Shiguang Ma
We investigate the impact of manager political connection and founder status on tunneling in China's listed firms from 2004 to 2010. By classifying the political connections into three dimensions with two categories of controlling ownerships, we find that overall manager political connection is negatively related to tunneling in private firms but positively related to tunneling in SOEs. The CPC/CPPCC-type connection is likely to protect firms from tunneling, while the official-type connection facilitates tunneling from firms. The impact of these two types of political connection on tunneling is stronger at the central level than the local level. A chairman's political connection …