Search results

We adopt an information risk view and argue that higher levels of pledge risk incurred by insiders incentivize opportunistic financial disclosure and impair the quality of information available to analysts to forecast firm performance.

We sample Chinese listed companies from 2010 to 2022. Following the literature, we apply established models to measure and test analysts’ forecasting accuracy/dispersion related to controlling shareholders pledging equity and the amount of margin call pressure. Analyst characteristics and nonfinancial disclosures proxied by CSR reports are also examined as factors likely to influence the relationship between pledge risk and analysts’ forecast quality.

We find that analysts’ earnings predictions are less accurate and more dispersed as the proportion of shares pledged (pledge ratio) increases and in combination with greater margin call pressure. Pledge ratios are significantly associated with several information risk proxies (i.e. earnings permanence, accruals quality, audit quality, financial restatements, related party transactions and internal control weaknesses), validating the channel through which equity pledges undermine analysts’ forecast quality. The results also demonstrate that forecast quality declines for a wide variety of analysts’ attributes, including high- and low-quality analysts and analysts from small and large brokerage firms. Importantly, nonfinancial disclosures, as proxied by CSR reporting, improve analysts’ forecasts.

We extend the literature by demonstrating that incremental pledge risk increases non-diversifiable information risk; all non-pledging shareholders pay a premium through more diverse and less accurate earnings forecasts. Our study provides important policy implications with economically significant costs to investors associated with insider equity pledges. Our results highlight the benefits of nonfinancial disclosures in China, which has implications for the current debate on the global convergence of CSR reporting.

This study aims to explain the market-oriented transformation dilemma of Chinese urban investment and development companies (UIDCs; also known as local government investment and financing companies) and objectively evaluate their transformation efficiency from both static and dynamic perspectives. The results of the research provide methodological bases for improving the transformation efficiency of UIDCs, thus pointing out the direction for the rational planning of their transformation path.

This study takes Chinese UIDCs in market transformation during 2015–2019 as the research object and uses principal component analysis to screen the index system for measuring the efficiency of market transformation. It then uses a three-stage data envelopment analysis model and the Malmquist productivity index to evaluate the market transformation efficiency of these companies during 2015–2019 and comprehensively analyzes the influence of external environmental factors on the market transformation of Chinese UIDCs.

Research results show that the transformation efficiency of Chinese UIDCs is low and slow overall and that large spatial and temporal differences exist. The transformation efficiency of UIDCs located in eastern China is higher than that of UIDCs in central and western China. The higher the external environmental factors of regional GDP, local debt service pressure and credit rating, the more likely they are to cause input redundancy in the transformation process of Chinese UIDCs, which is not conducive to their market-oriented transformation. In addition, the higher the urbanization rate, the more effective it is to improve the efficiency of market-oriented transformation of UIDCs. If the influence of environmental factors is stripped away, both the overall efficiency value and pure technical efficiency value of market-oriented transformation of Chinese UIDCs will increase while the scale efficiency value becomes smaller.

This research measures the transformation efficiency of Chinese UIDCs and comprehensively analyzes the influence of external environmental factors on their market-oriented transformation. The goal is to enrich the study of the market-oriented transformation efficiency evaluation index system of Chinese UIDCs at the theoretical level and provide important reference values for improving the efficiency of market-oriented transformation of Chinese UIDCs at the practical level.

This study aims to research the erosion wear characteristics and sealing performance of V-regulating ball valve in coal chemical process pipelines, which provides a theoretical reference for improving its antiwear and sealing performance.

Taking the V-regulating ball valve as the research object, based on the computational fluid dynamics and the theory of erosion wear, the authors studied its erosion characteristics under different medium parameters and analyzed the sealing performance under the heat-fluid–solid coupling working condition.

The erosion wear mechanism of the valve sealing surface is the simultaneous action of cutting and deformation. When the medium flow velocity, particle mass flow rate and particle size increase, the maximum erosion rate and average erosion rate in the V-regulating valve increase. The inner diameter Mises contact stress of the sealing surface is symmetrically distributed in a “wing shape,” and the contact stress of the outer diameter is distributed in a “butterfly shape.” Due to the superposition of thermal stress and pressure stress in the contact transition zone to produce a significant stress concentration.

The findings will provide a theoretical basis for improving the erosion resistance and sealing performance of V-regulating ball valve in coal chemical industry.

V-type regulating ball valve is widely favored by coal chemical enterprises and petrochemical enterprises because of its wide adjustment ratio and good erosion resistance.

The V-regulating ball valve wear mechanism for cutting and deformation simultaneously, and its wear rate is positively correlated with the medium flow rate, particle mass flow rate and particle size. After the valve is opened, there is a significant stress concentration occurs in the contact transition zone due to the superposition of thermal stress and compressive stress. The findings will provide a theoretical basis for improving the erosion resistance and sealing performance of V-regulating ball valve in coal chemical industry.

The peer review history for this article is available at: https://publons.com/publon/10.1108/ILT-06-2024-0205/