Journal Articles

Permanent URI for this collectionhttps://mro.massey.ac.nz/handle/10179/7915

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Author: search.filters.author.Hao WSubject: search.filters.subject.China

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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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    Earnings quality and crash risk in China: an integrated analysis
    (Emerald Publishing Limited, 16/03/2021) Wongchoti U; Tian G; Hao W; Ding Y; Zhou H; thanh, SD
    Purpose – The authors provide a comprehensive empirical examination on the impact of earnings quality on stock price crash risk in China. Design/methodology/approach – The authors acknowledge and distinguish two-dimensional proxies for earnings quality – accounting-based (earnings management degree) and market-based (earnings transparency) known in accounting and finance literature. Findings – The authors find that both generally indicate that better earnings quality is associated with less crashes. However, extremely high earnings transparency interacted with insider trading profit can also actually exacerbate stock price crashes. Originality/value – This study is the first to highlight the pertinence of accounting-based measures to proxy for earnings quality in a fast-growing emerging market environment such as China.