Huimin Jing and Yixin Zhu
This paper aims to explore the impact of cycle superposition on bank liquidity risk under different levels of financial openness so that banks can better manage their liquidity…
Abstract
Purpose
This paper aims to explore the impact of cycle superposition on bank liquidity risk under different levels of financial openness so that banks can better manage their liquidity risk. Meanwhile, it can also provide some ideas for banks in other emerging economies to better cope with the shocks of the global financial cycle.
Design/methodology/approach
Employing the monthly data of 16 commercial banks in China from 2005 to 2021 and based on the time-varying parameter vector autoregressive model with stochastic volatility (TVP-SV-VAR) model, the authors first examine whether the cycle superposition can magnify the impact of China's financial cycle on bank liquidity risk. Subsequently, the authors investigate the impact of different levels of financial openness on cycle superposition amplification. Finally, the shock of the financial cycle of the world's major economies on the liquidity risk of Chinese banks is also empirically analyzed.
Findings
Cycle superposition can magnify the impact of China's financial cycle on bank liquidity risk. However, there are significant differences under different levels of financial openness. Compared with low financial openness, in the period of high financial openness, the magnifying effect of cycle superposition is strengthened in the short term but obviously weakened in the long run. In addition, the authors' findings also demonstrate that although the United States is the main shock country, the influence of other developed economies, such as Japan and Eurozone countries, cannot be ignored.
Originality/value
Firstly, the cycle superposition index is constructed. Secondly, the authors supplement the literature by providing evidence that the association between cycle superposition and bank liquidity risk also depends on financial openness. Finally, the dominant countries of the global financial cycle have been rejudged.
Details
Keywords
Yixin Qiu, Ying Tang, Xiaohang Ren, Andrea Moro and Farhad Taghizadeh-Hesary
This study aims to investigate the relationship between corporate environmental responsibility (CER) and risk-taking in Chinese A-share listed companies from 2011 to 2020. It…
Abstract
Purpose
This study aims to investigate the relationship between corporate environmental responsibility (CER) and risk-taking in Chinese A-share listed companies from 2011 to 2020. It seeks to understand the influence of CER on risk-taking behavior and explore potential moderating factors.
Design/methodology/approach
A quantitative approach is used, using data from Chinese A-share listed companies over the specified period. Regression analysis is used to examine the relationship between CER and risk-taking, while considering moderating variables such as performance aspiration, environmental enrichment and contextual factors.
Findings
The findings indicate that CER positively influences corporate risk-taking, with significant impacts on information asymmetry and corporate reputation. Moreover, positive performance aspiration strengthens the effect of CER on risk-taking, while negative performance aspiration and environmental enrichment weaken this effect. Cross-sectional analysis shows that the positive association between CER and risk-taking is more prominent for firms located in areas with strict environmental regulation, for nonstate-owned firms, and for firms with higher levels of internal control.
Originality/value
This research contributes to the literature by providing insights into the dynamics between CER and risk-taking in the Chinese market context. It expands existing knowledge by considering the influence of performance aspiration on this relationship, offering practical implications for firms seeking to enhance corporate performance through strategic management of environmental responsibilities.
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Wanru Xie, Yixin Zhao, Gang Zhao, Fei Yang, Zilong Wei and Jinzhao Liu
High-speed turnouts are more complex in structure and thus may cause abnormal vibration of high-speed train car body, affecting driving safety and passenger riding experience…
Abstract
Purpose
High-speed turnouts are more complex in structure and thus may cause abnormal vibration of high-speed train car body, affecting driving safety and passenger riding experience. Therefore, it is necessary to analyze the data characteristics of continuous hunting of high-speed trains passing through turnouts and propose a diagnostic method for engineering applications.
Design/methodology/approach
First, Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (CEEMDAN) is performed to determine the first characteristic component of the car body’s lateral acceleration. Then, the Short-Time Fourier Transform (STFT) is performed to calculate the marginal spectra. Finally, the presence of a continuous hunting problem is determined based on the results of the comparison calculations and diagnostic thresholds. To improve computational efficiency, permutation entropy (PE) is used as a fast indicator to identify turnouts with potential problems.
Findings
Under continuous hunting conditions, the PE is less than 0.90; the ratio of the maximum peak value of the signal component to the original signal peak value exceeded 0.7, and there is an energy band in the STFT time-frequency map, which corresponds to a frequency distribution range of 1–2 Hz.
Originality/value
The research results have revealed the lateral vibration characteristics of the high-speed train’s car body during continuous hunting when passing through turnouts. On this basis, an effective diagnostic method has been proposed. With a focus on practical engineering applications, a rapid screening index for identifying potential issues has been proposed, significantly enhancing the efficiency of diagnostic processes.
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Yixin Ding, Zhen Lei and Junrong Wei
Building on expectancy violations theory, this study aims to investigate the role of negative performance feedback in firm’s mergers and acquisitions (M&A) intensity, a typical…
Abstract
Purpose
Building on expectancy violations theory, this study aims to investigate the role of negative performance feedback in firm’s mergers and acquisitions (M&A) intensity, a typical risky strategic option which might entail negative reactions from shareholders, and also examine the moderating effects of top management teams (TMTs) regulatory focus on this relationship.
Design/methodology/approach
The authors use a longitudinal panel sample of 2,042 Chinese A-share listed manufacturing firms and data for the years between 2007 and 2019 collected from multiple data sources. Furthermore, the authors also conducted supplementary analyses and various robustness checks of the key variables.
Findings
The findings show that both the intensity and duration of negative performance feedback negatively impact firms’ M&A intensity. Besides, the effect of negative performance feedback on M&A intensity will be magnified when the focal firm of TMTs with high prevention focus.
Practical implications
During the period of performance depression, TMTs are supposed to focus on stability, keep an eye on potential risks and be prudent in making decisions like walking on eggshells to avoid making further losses.
Originality/value
This study develops a core mechanism – managers of underperformance firms prioritize meeting shareholder expectations as their foremost task to ensure minimal negative repercussions – and also highlights the role of fit between TMT prevention focus and negative performance feedback on M&A intensity.