Yunqi Fan, Guanglei Hu and Xiaoxue Chen
This study aims to examine whether mandatory audit partner rotation is associated with future stock price crash risk.
Abstract
Purpose
This study aims to examine whether mandatory audit partner rotation is associated with future stock price crash risk.
Design/methodology/approach
This study makes use of a regulatory change from the Ministry of Finance of China and the China Securities Regulation Commission, which requires mandatory rotation of audit partners since 2004, as a natural experiment to establish causality and applies a difference-in-difference research design.
Findings
Audit partner rotation leads to a significant decrease in future stock price crash risk in the departing partner’s final year of tenure preceding mandatory rotation, consistent with peer monitoring argument of mandatory rotation. Inconsistent with other arguments, including client-specific knowledge, fresh perspective and auditor independence, no significant effect takes a place in the incoming partner’s first year of tenure following mandatory rotation. Mechanism analysis documents that mandatory audit partner rotation reduces stock price crash risk by improving audit quality and constraining managerial empire building.
Originality/value
The results shed new light on the capital market consequence of mandatory audit partner rotation and the cause of stock price crash risk.
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Silu Chen, Wenxing Liu, Guanglei Zhang and Chenling Tian
The purpose of this study was to examine the underlying mechanism as well as the boundary effect between employees' perceived ethical human resource management (HRM) and ethical…
Abstract
Purpose
The purpose of this study was to examine the underlying mechanism as well as the boundary effect between employees' perceived ethical human resource management (HRM) and ethical voice based on social cognitive theory. The authors expect that employees who perceive ethical HRM could develop their moral reasoning and conduct through one of the cognitive processes (i.e. vicarious experience).
Design/methodology/approach
Based on structural equation modelling and hierarchical regression analysis, the authors conducted a questionnaire survey on 265 employees and their immediate supervisors from a manufacturing company in China.
Findings
Employees' perceived ethical HRM was positively related to ethical voice, and moral efficacy mediated this relationship. Moral task complexity not only moderated the relationship between employees' perceived ethical HRM and moral efficacy but also moderated the indirect effect of employees' perceived ethical HRM on ethical voice such that the impact was stronger when the moral task complexity level is higher and weaker when low.
Practical implications
This research model provides a framework through which organisations can diagnose potential ethical issues with the implementation of ethical HRM, as well as increase employee awareness of ethical values and then enhance their moral efficacy. Moreover, organisations can benefit from combining interventions and practices that influence the task design.
Originality/value
This study fills research gap by examining the mechanisms that shape employees' ethical voice from the perspective of HRM through moral efficacy and demonstrates that higher levels of moral task complexity contribute to higher levels of moral efficacy and ethical voice.
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Chaoqun Zhang, Donglan Zha, Guanglei Yang and Fu Wang
The purpose of this paper is to test the mediating role of perceived insider status (PIS) on the relationship between differential leadership and thriving at work, and the extent…
Abstract
Purpose
The purpose of this paper is to test the mediating role of perceived insider status (PIS) on the relationship between differential leadership and thriving at work, and the extent to which this mediating role is moderated by proactive personality.
Design/methodology/approach
This study conducts a questionnaire with 332 employees from China, taking certain traditional cultural factors and social exchange theory into consideration. This paper then analyzes the responses using a structuring equation model with SPSS 24.0 and LISREL 8.7.
Findings
The results show that PIS mediated the relationship between differential leadership and thriving at work. In addition, proactive personality was found to moderate this mediating pathway, whereby a high proactive personality increased the mediating role of perceived insider status.
Originality/value
This study explores how and why differential leadership is positively related to thriving at work. This paper verifies the moderated mediation model relationship among the research variables and contributes to the literature on differential leadership.
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Jinfan Zhou, Puwen Shang, Guanglei Zhang, Youqing Fan and Rong Ma
More and more literature points out that compared to fragmented strategic HRM, interactive or internally consistent HR systems can generate synergies and more effectively predict…
Abstract
Purpose
More and more literature points out that compared to fragmented strategic HRM, interactive or internally consistent HR systems can generate synergies and more effectively predict employee outcomes. Different HR subsystems (such as performance-oriented and maintenance-oriented HRM practices), respectively, play a critical role for organizations and employees. However, the impact of the synergy effect of different practices within the HRM system is less concerning to researchers. Based on self-regulation theory, this paper explores the congruence effects within the dual-oriented HR system on employee ethical behaviors (prosocial/unethical behavior).
Design/methodology/approach
Data were collected in a two-wave survey from 252 employees working in high-tech and service companies in China. Polynomial regression and response surface analyses were used to examine the hypotheses.
Findings
The results indicate that the internal congruence of performance-oriented and maintenance-oriented HRM practices is positively related to employees’ prosocial behavior but negatively related to employees’ unethical behavior. Employees have more prosocial behavior and less unethical behavior when they perceive the high-performance-oriented and high-maintenance-oriented HRM practices than the low-performance-oriented and low-maintenance-oriented HRM practices. Employees also have more prosocial behavior and less unethical behavior when they perceive the low performance-oriented and high maintenance-oriented HRM practices than the high performance-oriented and low maintenance-oriented HRM practices.
Originality/value
Drawing on self-regulation theory and the “Yin-Yang balancing” perspective, this paper extends the limited understanding of the influence of dual-oriented HR system internal congruence between performance-oriented and maintenance-oriented HRM practices on employee behaviors. This paper is of great significance for a better understanding of the complexity and potential of HR systems.
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Ren Hong, Zhang Zhengtong, Ma Xianrui and Tang Xilai
In the face of solving the urban traffic congestion problem radically, emphasis has been laid on the research on slow traffic planning of urban built environment. Hence, research…
Abstract
In the face of solving the urban traffic congestion problem radically, emphasis has been laid on the research on slow traffic planning of urban built environment. Hence, research on slow traffic demand forecasting can provide a basis for the planning of urban slow traffic systems. Based on land use, the overall planning of the new Guangming (GM) district, and the population prediction results, the slow traffic demand within the scope of the new district was forecasted by combining the per capita trip frequency, and the spatial distribution of the slow traffic flow of the new GM district was forecasted per the forecasted demand quantity for slow traffic. The following research conclusions were obtained. Within the new GM district, the correlation of the total demand for slow traffic with the land use functions and population distribution was high, and the cross-zone traffic was mainly decided by the land usage of this district. The cross-unit slow traffic flow was concentrated in the Gongming central, Guangming central, high-tech zone, and Yutian zones. This research provides a guideline for the layout of slow traffic facilities in the future.
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Muhammad Kashif, Chen Pinglu, Atta Ullah and Ningyu Qian
This study aims to examine the dynamic effect of FinTech on financial stability, with the moderating role of green finance (GF), its dimensions and mechanisms in the context of…
Abstract
Purpose
This study aims to examine the dynamic effect of FinTech on financial stability, with the moderating role of green finance (GF), its dimensions and mechanisms in the context of the spillover effects of the COVID-19 shock. This study used balanced panel data from 148 countries, including 76 developed and 72 emerging nations, from 2005 to 2022.
Design/methodology/approach
The research utilized the dynamic two-step system (GMM), and robustness was performed with the bootstrapped panel quantile regression.
Findings
The findings reveal that FinTech significantly affects financial stability across the entire sample. The overall composite of GF boosts financial stability by improving financial soundness. The GF dimensions, such as environmental, resource and financial, positively influence FS, while the GF economic dimension hurts FS. The moderating role and all interaction terms of GF dimensions with FinTech contribute positively and significantly to FS. While the interaction term GF resources with FinTech negatively impacts FS, indicating that countries should utilize resources more efficiently. Additionally, the COVID-19 spillover effect negatively influences FS across all samples. In advanced countries, FinTech and green finance positively affect FS. In emerging countries, green finance (except for the resource dimension) and FinTech interactions enhance financial stability, (except for the environmental dimension), leading to environmental hazards from their highly intensive industrial carbon policies.
Practical implications
The findings suggest that policymakers should prioritize promoting the adoption of initiatives related to FinTech and green finance by integrating sustainable transition finance policy frameworks to maintain stability and foster low-carbon economies for a sustainable future.
Social implications
Improved financial stability has more significant social effects, such as better investment instruments, confidence and economic growth. Policymakers can leverage these findings to establish resilient financial ecosystems, fostering sustainable economic development and decreasing the risk of financial crises.
Originality/value
This study offers novel insights into how FinTech and multi-dimensional green finance effect financial stability in advanced and emerging nations. It provides unique insights into context-specific dynamics and enhances the literature on financial stability.