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This paper aims to examine whether managerial sentiment, extracted from annual reports, is associated with corporate risk-taking in the context of Chinese companies. This study expands the vein of literature on overconfidence theory.

By leveraging textual analysis on Chinese listed companies’ annual reports, the authors construct firm-level managerial sentiment during 2007 and 2021 to examine how managerial sentiment influences corporate risk-taking after control for firm characteristics. Corporate risk-taking is denoted by corporate investment engagements: capital expenditures and net fixed asset investment.

Results show that incentives for corporate risk-taking are likely to increase with the positive managerial sentiment and decrease with the negative sentiment in companies’ annual reports. Positive managerial sentiment is associated with over-/under-investment and low/high investment efficiency. Further additional tests show that the managerial sentiment effect only holds during low economic uncertain years and samples of private-owned firms. Furthermore, the robust tests indicate that there is no endogenous issue between managerial sentiment and corporate risk-taking.

Annual report textual-based managerial sentiment may not perfectly reflect managers’ lower frequency sentiment (e.g. weekly, monthly and quarterly sentiment). Future studies could attempt to capture managers’ on-time sentiment by using media sources and corporate disclosures.

To the best of the authors’ knowledge, this paper is the first research to provide insights into supervising managers’ corporate decisions by observing their textual information usage in corporate disclosure. Moreover, the approach of measuring managerial sentiment might be a solution to monitoring managerial class.

This paper contributes to the literature on accounting and finance studies, adding another piece of empirical evidence on content analysis by examining a unique language and institutional context (i.e. China). Besides, the paper notes that in line with the English version disclosure, based on Chinese semantic words, managerial sentiment in the Chinese-speaking world has magnitude on corporate decisions. The research provides insights into supervising managers’ corporate decisions by observing their textual information usage in corporate disclosure. Moreover, the approach to measuring managerial sentiment may be a practical solution to monitoring managerial class.

Some studies have claimed that Chinese thinker Hu Shi (or Hu Shih) received and responded to John Dewey's educational ideas only at a theoretical level and did little for education at a practical level. This paper reexamines Hu's reception of Dewey's ideas with a focus on how he used those ideas to solve China's educational and social problems during the late 1910s and 1920s.

This paper draws upon what Schriewer (2012) has called “theories of reception.” Rather than focusing on the international dissemination of ideas and knowledge, this approach emphasizes the reception of foreign ideas from the perspective and needs of the receiver, interpreter and/or reader who apprehends such ideas within a particular socio–cultural context.

This paper finds that Hu not only received — and examined — Dewey's educational ideas in a systematic way, but also used them pragmatically to reform China's systems of education as part of the New Culture Movement after 1919.

This research offers a new understanding of Hu's reception of Dewey's educational ideas. It shows that Hu was not merely a “thinker” in the field of education but also a “doer” who sought to apply Dewey's ideas in practice. This new view allows us to reevaluate Hu's role in the modernization of Chinese education.