Dawei Jin, Hao Shen, Haizhi Wang and Desheng Yin
The purpose of this paper is to empirically explore whether and to what extent the changes in state corporate income tax rates affect corporate tax aggressiveness.
Abstract
Purpose
The purpose of this paper is to empirically explore whether and to what extent the changes in state corporate income tax rates affect corporate tax aggressiveness.
Design/methodology/approach
Using a differences-in-differences approach with dynamic treatment, the authors investigate the effect of staggered changes in state corporate income tax rates in the USA on corporate tax aggressiveness.
Findings
Firms become more aggressive in avoiding taxes following state tax increases but are insensitive to tax cuts. The effect of state tax increases on tax aggressiveness is weaker for firms with greater debt tax shields and marginal tax rates. Firms are more likely to shift their operations and relocate their headquarters out of states experiencing tax increases.
Originality/value
To the best of the authors' knowledge, this paper is the first to study the relation between state tax policy changes and corporate tax aggressiveness. This paper finds an asymmetrical pattern of corporate tax aggressiveness in response to state tax changes.
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Dawei Jin, Jianghui Liu, Liuling Liu and Desheng Yin
– The purpose of this paper is to investigate the quality of financial reporting by banks in China, and the profit hiding behavior of banks in particular.
Abstract
Purpose
The purpose of this paper is to investigate the quality of financial reporting by banks in China, and the profit hiding behavior of banks in particular.
Design/methodology/approach
Reported profit is compared with actual profit using multiple regression analysis. The identification strategy allows the authors to quantify the degree of profit hiding in banking institutions.
Findings
Profit hiding exists in the whole banking sector in China regardless of the ownership structure of individual banks, though joint-stock banks have higher degree of profit hiding. Banks that are more financially constrained hide more profit than those less constrained ones. The competition in the banking industry competition impacts the extent of profit hiding, with higher competition being associated with lower degree of profit hiding.
Research limitations/implications
This paper documents the prevailing behavior of profit hiding in Chinese banks. It raises issues regarding the conventional methods of measuring bank efficiencies using accounting information reported by banking institutions.
Originality/value
This paper empirically examines the profit hiding behavior of banks in a transitional country.
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Dawei Jin, Hao Shen, Haizhi Wang and Desheng Yin
This chapter investigates whether and to what extent tax benefits affect the likelihood of firms undertaking leveraged buyout (LBO) transactions.
Abstract
Purpose
This chapter investigates whether and to what extent tax benefits affect the likelihood of firms undertaking leveraged buyout (LBO) transactions.
Design/Methodology/Approach
With an identified sample of LBO firms and similar non-LBO counterparts, this chapter utilizes staggered changes in state corporate income tax rates as exogenous shocks and adopts a Logistic regression to analyze how these tax changes affect firms' probability of engaging in LBOs.
Findings
Firms are more likely to engage in LBOs after increases in corporate income tax rates. Specifically, the increase in the likelihood of firms undertaking LBOs following tax increases is between 6.9% and 12.9%. We also find that this positive relation is more pronounced for firms with higher levels of return on assets (ROA) and marginal tax rates (MTR). Finally, we report that the mean value of tax benefits accounts for between 28.5% and 170% of the premium paid to pre-buyout shareholders.
Originality/Value
This chapter provides strong evidence that tax benefits constitute an important source of value creation in LBOs and adds to the debate regarding the role of tax benefits in LBOs.
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Yiwei Fang, Dawei Jin, Xian Sun and Haizhi Wang
This study aims to build on the organizational learning theory and propose a complex strategy by combining strategic alliance with subsequent acquisitions to penetrate new product…
Abstract
Purpose
This study aims to build on the organizational learning theory and propose a complex strategy by combining strategic alliance with subsequent acquisitions to penetrate new product markets. The authors empirically examined whether and to what extent preacquisition alliance experience affects the short- and long-term stock performance of acquiring firms.
Design/methodology/approach
Data on acquisitions, in which the acquirers have experience from preacquisition alliance activities in their targets’ respective industry, were collected. Diversifying acquisitions were focused upon to ensure that preacquisition alliance experience is the major source of organizational learning. A standard event study to examine acquirers’ abnormal returns was used and a Fama-French calendar-time portfolio approach to gauge long-run abnormal stock performance was adopted. In addition, regression analysis was conducted to investigate the alliance–acquisition relationship, controlling a set of variables capturing firm and acquisition characteristics.
Findings
It has been documented that in the short run, alliance experience may not always benefit acquirers’ stock performance surrounding the acquisition announcements. In particular, for acquiring firms experiencing negative cumulative abnormal returns, investors value alliance experience negatively. However, for up to 36 months after acquisitions, acquirers with alliance experience outperform their counterparts in almost every acquisition category regardless of the short-term announcement returns.
Originality/value
The current study has used a large-scale representative sample to investigate the dynamic interaction between alliances and acquisitions as two organizational forms for firms to grow. Findings indicate that firms can deliberately learn from their alliance activities and, later on, enter new markets through acquisitions. More importantly, it was found that, at least for some acquirers, preacquisition alliance activities are associated with worse short-term stock price performance because of possible information spillover and lifted entry barriers. It was confirmed that short-term pain nets long-term gains for acquirers heading into new markets.
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Dawei Yi, Zhiyun Zhang, Jin Chen, Libin Niu and Jianhong Peng
The directional solidification Fe-B alloy was prepared. The microstructures and three-body abrasive wear behaviors of directional solidification alloy were investigated.
Abstract
Purpose
The directional solidification Fe-B alloy was prepared. The microstructures and three-body abrasive wear behaviors of directional solidification alloy were investigated.
Design/methodology/approach
Fe-B alloy was melted in medium frequency induction furnace. The hardness was measured on HRS-150 Rockwell-hardness tester and HXD-1000TMC tester. The wear characteristic of the alloy was examined with a block-on-ring geometry. The worn surface of the alloy was investigated by scanning electron microscopy and laser scanning microscopy.
Findings
The wear weight loss and worn surface roughness increase with the increasing contact load in wear tests. When the worn surface is perpendicular to the boride growth direction, the highest hardness plane of the boride can resist abrasive effectively under the surrounding and supporting of the martensite matrix.
Originality/value
The relation between boride growth direction and wear direction will cause different boride breaking tendency and wear weight loss.
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Chien-Wen Shen and Phung Phi Tran
This study aims to provide a more complete picture of blockchain development by combining numerous methodologies with diverse data sources, such as academic papers and news…
Abstract
Purpose
This study aims to provide a more complete picture of blockchain development by combining numerous methodologies with diverse data sources, such as academic papers and news articles. This study displays the developmental status of each subject based on the interrelationships of each topic cluster by analyzing high-frequency keywords extracted from the collected data. Moreover, applying above methodologies will help understanding top research topics, authors, venues, institutes and countries. The differences of blockchain research and new are identified.
Design/methodology/approach
To identify and find blockchain development linkages, researchers have used search terms such as co-occurrence, bibliographic coupling, co-citation and co-authorship to help us understand the top research topics, authors, venues, institutes and countries. This study also used text mining analysis to identify blockchain articles' primary concepts and semantic structures.
Findings
The findings show the fundamental topics based on each topic cluster's links. While “technology”, “transaction”, “privacy and security”, “environment” and “consensus” were most strongly associated with blockchain in research, “platform”, “big data and cloud”, “network”, “healthcare and business” and “authentication” were closely tied to blockchain news. This article classifies blockchain principles into five patterns: hardware and infrastructure, data, networking, applications and consensus. These statistics helped the authors comprehend the top research topics, authors, venues, publication institutes and countries.
Research limitations/implications
Since Web of Science (WoS) and LexisNexis Academic data are used, the study has few sources. Others advise merging foreign datasets. WoS is one of the world's largest and most-used databases for assessing scientific papers.
Originality/value
This study has several uses and benefits. First, key concept discoveries can help academics understand blockchain research trends so they can prioritize research initiatives. Second, bibliographic coupling links academic papers on blockchain. It helps information seekers search and classify the material. Co-citation analysis results can help researchers identify potential partners and leaders in their field. The network's key organizations or countries should be proactive in discovering, proposing and creating new relationships with other organizations or countries, especially those from the journal network's border, to make the overall network more integrated and linked. Prominent members help recruit new authors to organizations or countries and link them to the co-authorship network. This study also used concept-linking analysis to identify blockchain articles' primary concepts and semantic structures. This may lead to new authors developing research ideas or subjects in primary disciplines of inquiry.
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Mushahid Hussain Baig, Jin Xu, Faisal Shahzad, Ijaz Ur Rehman and Rizwan Ali
We empirically investigate the impact of fintech innovation on dividend payout (DP) decisions. In addition, we also examine the mediated and moderated role of intellectual…
Abstract
Purpose
We empirically investigate the impact of fintech innovation on dividend payout (DP) decisions. In addition, we also examine the mediated and moderated role of intellectual capital (IC) and board characteristics (BC) respectively in the fintech innovation-DP relationship.
Design/methodology/approach
Using a sample of 9,441 firm-year observations over the period 2014–2022, we develop a structural model that encompasses fintech innovation, IC, BC and DP decisions. We utilize fixed effects regression to empirically test the model. A battery of tests such as the two-step Generalized Method of Moment, Heckman’s two-stage selection correction and Difference-in-Difference regression are used to check the robustness and sensitivity of the estimates.
Findings
Our results suggest that fintech innovation significantly and positively impacts DP decisions and IC partially mediates the fintech innovation–DP relationship. In addition, BC such as independence, age and gender diversity are found to moderate this relationship.
Originality/value
This study’s originality lies in its micro-level analysis of the impact of fintech innovation on DP decisions, considering a novel firm-level innovation metric derived from patent applications. To our knowledge, no previous work has empirically examined the mediating role of IC and the moderating influence of BC in the fintech innovation–DP relationship, offering a unique perspective on the complex interactions shaping dividend policies in the digital era.
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Mushahid Hussain Baig, Jin Xu, Faisal Shahzad and Rizwan Ali
This study aims to investigate the association of FinTech innovation (FinTechINN) and firm performance (FP) by considering the role of knowledge assets (KA) as a causal mechanism…
Abstract
Purpose
This study aims to investigate the association of FinTech innovation (FinTechINN) and firm performance (FP) by considering the role of knowledge assets (KA) as a causal mechanism underlying the FinTechINN – FP association.
Design/methodology/approach
In this study, the authors consider panel data of 1,049 Chinese A-listed firm and construct a structural model for corporate FinTech innovation, knowledge assets and firm performance while considering endogeneity issues in analyses over the period of 2014–2022. The modified value added intellectual capital (VAIC) and research and development (R&D) expenses are used as a proxy measure for knowledge assets, considering governance and corporate performance measures.
Findings
According to the findings of this study FinTech innovation (FinTechINN) has a positive significant effect on firm performance. Particularly; the findings disclose that FinTech innovations has a link with knowledge assets, FinTech innovations indirectly affects firm performance, and the association between FinTech innovation and firm performance is partially mediated by knowledge assets (MVAIC and R&D expenses).
Originality/value
Rooted in the dynamic capability and resource-based view, this study pioneers an empirical exploration of the association of FinTech innovation with firm performance. Moreover, it introduces the novel dimension of knowledge assets (on firm-level), acting as a mediating factor with in this relationship.
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Naser Valaei, S.R. Nikhashemi, Gregory Bressolles and Hwang Ha Jin
The purpose of this paper is to examine (a)symmetric features of task-technology-performance characteristics that are most relevant to fit, satisfaction and continuance intention…
Abstract
Purpose
The purpose of this paper is to examine (a)symmetric features of task-technology-performance characteristics that are most relevant to fit, satisfaction and continuance intention of using apps in mobile banking transactions.
Design/methodology/approach
Exploratory factor analysis was used with maximum likelihood extraction and Varimax rotation on a separate sample of 183 mobile banking apps users prior to the main data collection. The theoretical model was tested applying a factor-based structural equation modelling approach to a sample of 250 experienced mobile banking apps users.
Findings
The study unveiled that the task and performance characteristics are more relevant compared to technology characteristics when doing transactions via apps. In addition, the findings uncovered that user satisfaction and continuous intention to use apps stem from the degree of fit in online transactions. The findings of moderation analysis highlighted that users in the lower income group are more concerned about the performance characteristics of banking apps, and there are no differences across age and gender groups. Surprisingly, technology characteristic has a nonlinear nature and this study shows potential boundary conditions of technology characteristics in degree of fit, user satisfaction and continuance intention to use apps.
Practical implications
Findings from the conditional probabilistic queries reveal that with 83.3 per cent of probability, user satisfaction is high when using apps for banking transactions, if the levels of fit, task, performance and technology characteristics are high. Furthermore, with 72 per cent of probability, continuance intention to use apps is high, if the levels of performance and task characteristics are high.
Originality/value
Contributing to task-technology fit theory, this study shows that performance characteristics need to be aligned with task and technology characteristics in order to have better fit when using apps for online banking transactions.
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Guocheng Lv, Dawei Jia, Changyou Li, Chunyu Zhao, Xiulu Zhang, Feng Yan, Hongzhuang Zhang and Bing Li
This study aims to investigate the effect of countersunk rivet head dimensions on the fatigue performance of the riveted specimens of 2024-T3 alloy.
Abstract
Purpose
This study aims to investigate the effect of countersunk rivet head dimensions on the fatigue performance of the riveted specimens of 2024-T3 alloy.
Design/methodology/approach
The relationship between rivet head dimensions and fatigue behavior was investigated by finite element method and fatigue test. The fatigue fracture of the specimens was analyzed by scanning electron microscopy.
Findings
A change of the rivet head dimensions will cause a change in the stress concentration and residual normal stress, the stress concentration near the rivet hole causes the fatigue crack source to be located on the straight section of the countersunk rivet hole and the residual normal stress can effectively restrain the initiation and expansion of fatigue cracks. The fatigue cycle will cause the rivet holes to produce different degrees of surface wear.
Originality/value
The fatigue life of the specimens with the height of the rivet head of 2.28 mm and 2.00 mm are similar, but the specimens with the height of the rivet head of 1.72 mm were far higher than the other specimens.