Huang Zhizhong, Zhang Juan, Shen Yanzhi and Xie Wenli
The purpose of this paper is to study the impact of corporate governance on financial restatements in China, with a view to providing reference to strengthen the corporate…
Abstract
Purpose
The purpose of this paper is to study the impact of corporate governance on financial restatements in China, with a view to providing reference to strengthen the corporate governance and improve the quality of financial information.
Design/methodology/approach
The authors investigate associations between financial restatements and corporate governance via a sample of 1,147 listed companies from the period of 2002 to 2006, which includes 880 annual accounting restatements by 465 companies. Logistic model is used to regress restatement dummy variable on not only the equity and board structure, but also the quality of independent auditors. The restatements in this paper are caused by performance‐related accounting errors.
Findings
It was found that accounting misstatements related to performance could be prevented or restrained by strong internal governance, such as a board of higher percentage of outside directors and an audit committee that could oversee the accounting and financial reporting process on behalf of all shareholders, and outside governance, such as a big stockholder and a strong outside auditor from the Big4 accounting firms. However, the matched test shows the effect of audit committee on controlling restatements is endogenous, which relies on the effects of other governance factors.
Originality/value
In China, studies on the impact of corporate governance on financial restatements are few and the existing empirical researches show the selected samples are small, which constitute small part of the revision of accounting errors. In this paper, the data are more accurate and comprehensive than previous research and matched sample method was used to alleviate the impact of endogeneity of some explanatory variables. So, the conclusions are more reliable than in the past.
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Yuan Li, Yanzhi Xia, Min Li, Jinchi Liu, Miao Yu and Yutian Li
In this paper the aim is that Aramid/alginate blended nonwoven fabrics were prepared, and the flame retardancy of the blended nonwoven fabrics was studied by thermogravimetric…
Abstract
Purpose
In this paper the aim is that Aramid/alginate blended nonwoven fabrics were prepared, and the flame retardancy of the blended nonwoven fabrics was studied by thermogravimetric analysis, vertical flame test, limiting oxygen index (LOI) and cone calorimeter test.
Design/methodology/approach
The advantages of different fibers can be combined by blending, and the defects may be remedied. The study investigates whether incorporating alginate fibers into aramid fibers can enhance the flame retardancy and reduce the smoke production of prepared aramid/alginate blended nonwoven fabrics.
Findings
Thermogravimetric analysis indicated that alginate fibers could effectively inhibit the combustion performance of aramid fibers at a higher temperature zone, leaving more residual chars for heat isolation. And vertical flame test, LOI and cone calorimeter test testified that the incorporation of alginate fibers improved the flame retardancy and fire behaviors. When the ratio of alginate fibers for aramid/alginate blended nonwoven fabrics reached 80%, the incorporation of alginate fibers could notably decreased peak-heat release rate (54%), total heat release (THR) (29%), peak-smoke production rate (93%) and total smoke production (86%). What is more, the lower smoke production rate and lower THR of the blends vastly reduced the risk of secondary injury in fires.
Originality/value
This study proposes to inhibit the flue gas release of aramid fiber and enhance the flame retardant by mixing with alginate fiber, and proposes that alginate fiber can be used as a biological smoke inhibitor, as well as a flame retardant for aramid fiber.
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The purpose of this paper is to examine some drivers of users’ participation in online social question-and-answer (Q&A) communities based on social cognitive theory and then…
Abstract
Purpose
The purpose of this paper is to examine some drivers of users’ participation in online social question-and-answer (Q&A) communities based on social cognitive theory and then identify the underlying mechanism of this process.
Design/methodology/approach
This study developed a research model to test the proposed hypotheses, and an online survey was employed to collected data. Totally, 313 valid responses were collected, and partial least squares structural equation modeling was adopted to analyze these data.
Findings
This study empirically finds that the outcome expectations (personal outcome expectations and knowledge self-management outcome expectations) are positively related to participation in online social Q&A communities. At the same time, users’ self-efficacy positively influences their participation behaviors. It can not only directly motivate users’ participation, but also indirectly promote participation behaviors through the two dimensions of outcome expectations. Besides, perceived expertise and perceived similarity are two positive and significant environmental elements affecting users’ participation.
Originality/value
This study extends the understanding about how participation behaviors will be motivated in the context of online social Q&A communities. Drawing on the social cognitive theory, constructs were established based on the features of these communities. Meanwhile, some mediating effects in the motivating process were also discussed.
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Guotai Chi and Bin Meng
The purpose of this paper is to propose a debt rating index system for small industrial enterprises that significantly distinguishes the default state. This debt rating system is…
Abstract
Purpose
The purpose of this paper is to propose a debt rating index system for small industrial enterprises that significantly distinguishes the default state. This debt rating system is constructed using the F-test and correlation analysis method, with the small industrial enterprise loans of a Chinese commercial bank as the data sample. This study establishes the weighting principle for the debt scoring model: “the more significant the default state, the larger is the weight.” The debt rating system for small industrial enterprises is constructed based on the standard “the higher the debt rating, the lower is the loss given default.”
Design/methodology/approach
In this study, the authors selected indexes that pass the homogeneity of variance test based on the principle that a greater deviation of the default sample’s mean from the whole sample’s mean leads to greater significance in distinguishing the default samples from the non-default samples. The authors removed correlated indexes based on the results of the correlation analysis and constructed a debt rating index system for small industrial enterprises that included 23 indexes.
Findings
Among the 23 indexes, the weights of 12 quantitative indexes add up to 0.547, while the weights of the remaining 11 qualitative indexes add up to 0.453. That is, in the debt rating of the small industry enterprises, the financial indexes are not capable of reflecting all the debt situations, and the qualitative indexes play a more important role in debt rating. The weights of indexes “X17 Outstanding loans to all assets ratio” and “X59 Date of the enterprise establishment” are 0.146 and 0.133, respectively; both these are greater than 0.1, and the indexes are ranked first and second, respectively. The weights of indexes “X6 EBIT-to- current liabilities ratio,” “X13 Ratio of capital to fixed” and “X78 Legal dispute number” are between 0.07 and 0.09, these indexes are ranked third to fifth. The weights of indexes “X3 Quick ratio” and “X50 Per capital year-end savings balance of Urban and rural residents” are both 0.013, and these are the lowest ranked indexes.
Originality/value
The data of index i are divided into two categories: default and non-default. A greater deviation in the mean of the default sample from that of the whole sample leads to greater deviation from the non-default sample’s mean as well; thus, the index can easily distinguish the default and the non-default samples. Following this line of thought, the authors select indexes that pass the F-test for the debt rating system that identifies whether or not the sample is default. This avoids the disadvantages of the existing research in which the standard for selecting the index has nothing to do with the default state; further, this presents a new way of debt rating. When the correlation coefficient of two indexes is greater than 0.8, the index with the smaller F-value is removed because of its weaker prediction capacity. This avoids the mistake of eliminating an index that has strong ability to distinguish default and non-default samples. The greater the deviation of the default sample’s mean from the whole sample’s mean, the greater is the capability of the index to distinguish the default state. According to this rule, the authors assign a larger weight to the index that exhibits the ability to identify the default state. This is different from the existing index system, which does not take into account the ability to identify the default state.