Haiyuan Yin and Meng Sun
This paper aims to enrich the scope of the influence of media reports on the stock risk, and it also provides a path to support the research on the relationship between media…
Abstract
Purpose
This paper aims to enrich the scope of the influence of media reports on the stock risk, and it also provides a path to support the research on the relationship between media reports and idiosyncratic risks in the stock market.
Design/methodology/approach
The authors select financial restatement samples of listed companies in China from Jan 2015 to Dec 2017 to explore the impact of the financial restatement on the idiosyncratic risk of stocks. Further, the financial restatement that has more media attention may play a more significant role in promoting the idiosyncratic risk.
Findings
The authors found that the financial restatement of listed companies has a significant positive effect on the idiosyncratic risk of stocks. Specifically, the idiosyncratic risk changed five months before the restatement. After the restatement, the idiosyncratic risk increased by 83.47 in five days then decreased slowly, which lasted about one year. The restatement caused by sensitive issues and legal issues has a greater impact on the idiosyncratic risk. Both current restatement and delayed restatements will increase the idiosyncratic risk of stocks, but the impact of the latter is higher than the former.
Research limitations/implications
Possible deficiencies in the paper are that the number of restatements caused by major accounting errors is low. Therefore, no regular conclusions were drawn on the impact of the financial restatement caused by major accounting errors.
Practical implications
The conclusions provide a basis for targeted supervisory measures on the restatements of listed companies. The increase in financial restatements is closely related to the lack of governance mechanisms in the stock market. For investors, although the mystery of idiosyncratic volatility exists significantly in the market, the company's valuation level will affect the relationship between the idiosyncratic risk and expected return. Investors should pay attention to the intrinsic value of the company and should not blindly pursue stocks with a low idiosyncratic risk.
Originality/value
These conclusions may enrich the scope of the influence of media reports on the stock risk and also provide a path to support the research on the relationship between media reports and idiosyncratic risks in the capital market.
Details
Keywords
Huijie Gao, Jianhua Yang, Huanwu Yin and ZhiChao Ma
The purpose of this paper is to investigate significant impact of partner similarity on the success of horizontal alliances in logistics service providers (LSPs) from China.
Abstract
Purpose
The purpose of this paper is to investigate significant impact of partner similarity on the success of horizontal alliances in logistics service providers (LSPs) from China.
Design/methodology/approach
Primary data were collected via questionnaire distribution to 380 Chief Executive Officers and Managing Directors in 262 small and medium logistics enterprises in China. There are 316 valid questionnaires for further analysis with 83 percent accuracy in response rate. Structural equation modeling was used to test the impact of partner similarity on alliance management capability, stability and performance.
Findings
Partner similarity and logistics alliance management capability (LAMC) are positively correlated to alliance stability and performance in horizontal alliances among Chinese LSPs, especially competence similarity and cultural similarity. Moreover, alliance stability mediates the impact of partner similarity and LAMC on alliance performance.
Research limitations/implications
The basic limitation of this research is to collect data just from small and medium logistics enterprises that operate in China with sample size (n=316). This research could further be extended to other regions in China or other countries.
Practical implications
This research verifies the positive relationship between partner fit and management capability. Besides, based on research findings, the research proposes guidelines for LSPs pursuing horizontal alliances
Originality/value
This research proposes an experimental model for Chinese LSPs to cooperate successfully and build horizontal alliances in order to increase their effective customer response capability.
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Keywords
Yin Shi, Liping Ding, Chenchen He, Fan Zhang, Zumeng Zhang and Qiyao Dai
This study aims to analyze those factors affecting the rural resident’s willingness to adopt solar photovoltaic (PV) which is important for accelerating the popularization of…
Abstract
Purpose
This study aims to analyze those factors affecting the rural resident’s willingness to adopt solar photovoltaic (PV) which is important for accelerating the popularization of clean energy in China.
Design/methodology/approach
This study contained a sample of 653 households in 8 provinces/regions by stratified, and random sampling in rural China. Descriptive analysis, exploratory factor analysis and confirmatory factor analysis techniques have been used for analytical purposes.
Findings
The empirical results indicate that financial incentive and social interaction have positive effects on rural residents’ adoption willingness, while village leaders’ engagement can indirectly influence their adoption willingness through social interaction and residents’ cognition.
Research limitations/implications
This study mainly considers external and internal factors but ignores the effect of technical factors. In addition, the samples are just selected from the residents who have adopted solar PV.
Practical implications
This study is expected to be useful for the government, regulators, village leaders, village leaders and other institutions.
Originality/value
This study conducts a systematic analysis and clarifies the relationship between factors (external and internal) and rural residents’ adoption willingness. The village leaders’ engagement is first added to the conceptual model as an external factor, which is very essential in rural residents’ adoption in China.