Browsing by Author "Liao J"

Now showing 1 - 7 of 7
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    A leap of faith that echoes well? The value impact of Chinese firms starting up business overseas
    (Elsevier Inc, 2023-08) Lu B; Hao W; Liao J; Wongchoti U
    We investigate the impact of greenfield outward foreign direct investment (GODI) by Chinese firms on their subsequent Tobin's Q. Our findings indicate that Chinese listed companies from 2003 to 2019 generally experience a significantly positive boost in perceived firm value (or growth prospects) when engaging in overseas business start-ups (i.e., with no foreign partners) when compared to their inactive peers. The positive GODI effect is more prominent among privately owned enterprises vs. state-owned enterprises (SOEs). Our mechanism tests indicate that lowered effective tax rates and reduced illiquidity due to conducting greenfield ODI serve as the value-enhancing channels. Possibly driven by political objectives, SOEs tend to prioritize developing and Belt-Road countries as the destination for their greenfield overseas endeavors.
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    Board Gender Diversity and Its Risk Monitoring Role: Is It Significant
    (Asian Academy of Management (AAM) and Penerbit Universiti Sains Malaysia, 15/08/2018) Lee-Hwei Khaw K; Liao J
    In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholders’ interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate governance. This is because female directors are found to be more active in monitoring activities, cautious in decision making, less aggressive and risk averse as compared to male directors. We support this argument with evidence from a sample of listed firms in Malaysia. In line with the literature, we show that female directors play a significant monitoring role in reducing corporate risk taking behaviour. Our results are robust to endogeneity concern. Since board gender diversity plays a significant risk monitoring role, we recommend that there should be a continuous call to appoint female directors to the boardrooms among Malaysian listed firms to diversify the ‘old boys club’ corporate boardrooms.
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    Do socially preferred firms disclose more ESG information?
    (Emerald Publishing Limited, 2025-08-25) Peng Z; Anderson HD; Chi J; Liao J
    Purpose While research shows “sin” firms voluntarily disclose more social responsibility information, little research examines such practices in socially preferred industries. This study aims to address this gap by contrasting firm-level environmental, social and governance (ESG) information disclosure of New Zealand firms. Design/methodology/approach This study extracts all New Zealand listed companies for which Bloomberg provides ESG data from 2010 to 2023. Besides, this study excludes firms in financial service sector. The final sample contains 52 companies and 514 firm-year observations. Findings This study find that retirement village firms and the healthcare industry whose operations are commonly considered to be socially preferred, disclose less ESG information than firms in other industries. This result remains after a series of robustness tests, including alternative measures and matching samples. The addition of ESG provisions in the 2017 New Zealand Exchange’s (NZX) Corporate Governance Code, female and independent directors have a significantly positive moderating effect on ESG disclosure. In addition, retirement village firms with higher financial constraints increase ESG disclosure. Furthermore, this study finds that increased ESG disclosure enhances market valuation and reduces the cost of debt. Research limitations/implications A natural limitation of this research is its limited sample size, focusing on New Zealand firms, which may limit the generalisability of the findings to other regions with different regulatory and cultural contexts. Practical implications This research suggests that firms in socially preferred industries, like healthcare and retirement villages, may need stronger incentives or guidelines to improve ESG disclosure. Enhancing corporate governance, particularly through independent and female directors, could positively influence ESG transparency, guiding policy and board composition strategies. Social implications The research highlights a potential gap in ESG disclosure among industries. This suggests a need for greater public awareness and advocacy to ensure that even socially favoured sectors are held accountable for their environmental and social impacts, promoting broader corporate responsibility. Originality/value This study contributes to the literature by revealing that socially preferred industries, such as healthcare and retirement villages, may disclose less ESG information than other sectors. It provides novel insights into the role of corporate governance, particularly the influence of female and independent directors, in enhancing ESG transparency.
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    In the heat of the moment, secrets will out: Oil price uncertainty and firm green innovation disclosure
    (Elsevier Inc, 2025-03) Huang K; Chi J; Liao J; Yuen MK
    This study investigates the relationship between oil price uncertainty and corporate green innovation disclosure behaviour. Drawing on a textual analysis of annual reports and social responsibility reports of Chinese listed companies, we construct a measure for the intensity of corporate green innovation disclosure. We find a significantly positive relationship between oil price volatility and the level of green innovation disclosure. This relationship remains robust after conducting robustness tests and addressing potential endogeneity. Further analysis reveals that this positive association is moderated by several firm-level factors, including environmental performance, legitimacy demands, and political connections. Additionally, the positive relationship is more pronounced in firms subject to higher regional environmental regulation intensity and market-based green initiatives. Our findings contribute new evidence to corporate sustainable development, demonstrating that energy uncertainty significantly influences information transparency in green innovation disclosure.
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    The rise of common state ownership and corporate environmental performance
    (Elsevier Ltd, 2024-03-13) Liu X; Boubaker S; Liao J; Yao S
    This study assesses the effect of common state ownership on corporate environmental performance. Using a large sample of Chinese listed firms, we find that state-owned common ownership leads to significantly enhanced corporate environmental performance. Our mechanism analysis indicates that state-owned common owners promote environmental-friendly practices through resource allocation mechanisms that alleviate corporate financial constraints. In addition, these owners play a leadership role in fostering corporate green innovation and enhancing the overall performance of the industry. Specifically, common state ownership leads to higher industry's green total factor productivity and profitability. Moreover, we observe that the positive relationship between common state ownership and corporate environmental performance is more pronounced in firms without politically connected CEOs/chairpersons and in privately owned firms.
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    Who does not advance loses ground: Green investment as a strategic response by small and medium-sized enterprises to economic policy uncertainty
    (Elsevier B V, 2025-08-01) Yue S; Anderson H; Liao J
    This study examines how listed small and medium-sized enterprises (SMEs) respond to economic policy uncertainty (EPU exposure) through their environmental decisions. We find that SMEs are associated with increased environmental investment when facing heightened EPU exposure. Notably, SMEs with greater EPU exposure are more likely to invest in clean energy-related initiatives, underscoring the important role of the energy sector in driving corporate sustainable strategies. Additionally, this study reveals that the impact of EPU exposure on environmental investments is more salient when SMEs face fewer financial constraints, are located in more marketized regions, operate in less competitive markets and non-heavily polluting industries, and after the implementation of the 2012 Green Credit Policy. These findings suggest that SMEs are more likely to adopt sustainable practices under heightened policy uncertainty, leveraging environmental initiatives as a strategic response to facilitate firm development and growth.