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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It is desired to provide a diversified iterative scheme for solving the constrained solutions of the generalized coupled discrete-time periodic (GCDTP) matrix equations from the…
Abstract
Purpose
It is desired to provide a diversified iterative scheme for solving the constrained solutions of the generalized coupled discrete-time periodic (GCDTP) matrix equations from the perspective of optimization.
Design/methodology/approach
The paper considers generalized reflexive solutions of the GCDTP matrix equations by applying the Jacobi gradient-based iterative (JGI) algorithm, which is an extended variant of the gradient-based iterative (GI) algorithm.
Findings
Through numerical simulation, it is verified that the efficiency and accuracy of the JGI algorithm are better than some existing algorithms, such as the GI algorithm in Hajarian, the RGI algorithm in Sheng and the AGI algorithm in Xie and Ma.
Originality/value
It is the first instance in which the GCDTP matrix equations are solved applying the JGI algorithm.
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Social information is crucial to credit ratings and can improve the accuracy of the traditional credit assessment model. Drawing on the resource-based view (RBV) and social…
Abstract
Purpose
Social information is crucial to credit ratings and can improve the accuracy of the traditional credit assessment model. Drawing on the resource-based view (RBV) and social capital theory (SCT), this research explores the relationships between corporate social activities, network centrality and corporate credit behavior.
Design/methodology/approach
The authors used social network analysis (SNA) and regression analysis to analyze the data collected from 14,544 enterprises on the Alibaba platform.
Findings
The results indicate that among the four types of social activities, the number of corporate questions and posts shows a positive relationship with credit behavior; while the number of corporate comments has negative relationship with credit behavior. Further, degree and betweenness centralities mediate the relationship between the number of corporate questions, posts and comments with credit behavior.
Originality/value
This study contributes to the literature on non-financial factors (soft information) by exploring the social behavioral factors related to corporate credit. In addition, this study offers a new theoretical lens and reasonable explanations for investigating the relationship between corporate social activities, network centrality and credit behavior from the perspective of the resource-based view, while most studies are predictive and methodological. Moreover, this study provides new insights for platforms to evaluate enterprise credit and for managers to improve credit behavior.
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Abstract
Purpose
In response to the intense competition in the platform economy, e-commerce platforms are actively introducing value-added services to maintain their competitiveness. However, how effective these value-added services are in fulfilling this purpose remains unclear. This paper explores how value-added services can enhance e-commerce platform competitiveness, measured by both user scale and reputation, considering the effect of network externalities.
Design/methodology/approach
A bilateral e-commerce platform with potential high-quality sellers and low-quality sellers on one side and potential buyers on the other side was chosen as research setting. Game theory models are constructed to simultaneously consider the behaviors of all actors (including sellers, buyers and the platform).
Findings
On the one hand, to increase the seller scale, basic services play a substituting role in determining the effect of value-added services. On the other hand, to increase the buyer scale and improve platform reputation, basic services play a fundamental role in determining the effect of value-added services. Furthermore, the higher the loss rate of the product value, the bigger the room for providing value-added services. With increasing loss rate of the product value, participating buyers who are attracted by value-added services are the fastest growing indicators; this indicates that the most significant effect of value-added services is its increase in the buyer scale.
Practical implications
Basic services determine the lower limit of platform competitiveness, while value-added services set the upper limit. The results of this paper can instruct different types of platforms to enhance their competitiveness in different ways.
Originality/value
(1) While previous studies on how to enhance platform competitiveness only considered scale or reputation separately, this paper applies a new perspective of platform competitiveness, namely the improvement of both the seller scale/buyer scale and platform reputation. (2) According to the characteristics of bilateral platforms, game theory models are constructed to explore how value-added services can enhance platform competitiveness considering both positive and negative network externalities. (3) The existing literature studies basic services and value-added services in a fragmented state; this paper contributes to research on value-added services by considering the mutual effect between basic and value-added services.
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Xiaosong Dong, Wenli Cao and Yeqing Bao
This paper provides the strategic direction and coordination mechanism selection for the intelligent transformation of manufacturing enterprises.
Abstract
Purpose
This paper provides the strategic direction and coordination mechanism selection for the intelligent transformation of manufacturing enterprises.
Design/methodology/approach
A theoretical framework is developed through grounded theory and case analysis.
Findings
Collaboration value is the building block of the intelligent product ecosystem. The ecosystem is upgraded via a path of product coordination, platform coordination and network coordination.
Practical implications
This paper provides a framework for enterprises to build an intelligent product ecosystem.
Originality/value
The proposed intelligent product ecosystem framework is new to the literature and lays down a fruitful avenue for future research.
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Leaders are under increasing pressure to cultivate an engaged workforce in responsible ways, but how and when responsible leadership is related to employee work engagement remains…
Abstract
Purpose
Leaders are under increasing pressure to cultivate an engaged workforce in responsible ways, but how and when responsible leadership is related to employee work engagement remains unclear. Hence, this study aims to unfold the responsible leadership–work engagement relationship by exploring the mediating role of intrinsic corporate social responsibility (CSR) attributions and the moderating role of interactional justice.
Design/methodology/approach
A multiphase sample of 225 was collected from employees from the Chinese manufacturing industry. Hierarchical regression and PROCESS macro in SPSS were used to test the authors’ moderated mediation model.
Findings
The results demonstrate that responsible leadership is directly related to work engagement and indirectly related to it via employees' intrinsic CSR attributions. Interactional justice significantly strengthens the positive relationship between responsible leadership and intrinsic CSR attributions as well as the mediating effects of intrinsic CSR attributions.
Practical implications
To cultivate an engaged workforce that improves organizational effectiveness, firms and managers should facilitate responsible leadership, signal sincere motives of CSR activities and enhance fair interpersonal treatment at work. These can also be helpful in various fields (e.g. promoting public trust).
Originality/value
Based on social learning theory and attribution theory, this study empirically reveals the role of responsible leadership in enhancing work engagement. It sheds new light on the psychological mechanism and the boundary condition explaining how and when this linkage occurs, which advances research on responsible leadership and the individual-level analysis of CSR.
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Tim Gocher, Wen Li Chan, Jayalakshmy Ramachandran and Angelina Seow Voon Yee
This study aims to explore the effects of responsible international investment in a least developed country (LDC) on ethics and corruption in the local industry. While investment…
Abstract
Purpose
This study aims to explore the effects of responsible international investment in a least developed country (LDC) on ethics and corruption in the local industry. While investment growth in least developed countries (LDCs) is essential to meet the United Nations Sustainable Development Goals, international investment in LDCs poses challenges, including corruption. The authors explore perspectives from relevant stakeholders on the influence, if any, on an LDC’s banking sector, of investment in the LDC by a multinational bank with an environmental, social and governance focus – using a case study of Standard Chartered Bank (SCB) in Nepal.
Design/methodology/approach
The authors conducted thematic analysis on: focus groups with current and former SCB Nepal management; semi-structured interviews with Nepal banking regulator representatives; senior staff from SCB global divisions; and management of other commercial banks in Nepal.
Findings
Knowledge transfer, organisational enablers and constructive international competition contributed to the dissemination of best practices within the Nepal banking sector, supporting the notion of beneficial spill-over effects of multinationals on LDC host countries.
Practical implications
Practical insights will aid LDC governments, international businesses, investment funds and donor organisations seeking to invest in/assist LDCs with economic development.
Originality/value
To the best of the authors’ knowledge, this may be the first case study on ethics and anti-corruption practices of a multinational bank in a LDC. Through a practice-driven focus, the authors provide “on-the-ground” insights to better understand the complex nature of corruption.
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Fan Bao, Kaiyu Zhang, Zhengrong Zhou, Wenli Zhang, Xiao Cai and Lin Zhang
The purpose of this paper is to demonstrate the effect of δ-ferrite on the susceptibility to hydrogen embrittlement of type 304 stainless steel in hydrogen gas environment.
Abstract
Purpose
The purpose of this paper is to demonstrate the effect of δ-ferrite on the susceptibility to hydrogen embrittlement of type 304 stainless steel in hydrogen gas environment.
Design/methodology/approach
The mechanical properties of as-received and solution-treated specimens were investigated by the test of tensile and fatigue crack growth (FCG) in 5 MPa argon and hydrogen.
Findings
The presence of δ-ferrite reduced the relative elongation and the relative reduction area (H2/Ar) of 304 stainless steel, indicating that δ-ferrite increased the susceptibility of hydrogen embrittlement in 304 stainless steel. Moreover, δ-ferrite promoted the fatigue crack initiation and propagation at the interface between δ-ferrite and austenite. The FCG tests were used to investigate the effect of δ-ferrite on the FCG rate in hydrogen gas environment, and it was found that δ-ferrite accelerated the FCG rate, which was attributed to rapid diffusion and accumulation of hydrogen around the fatigue crack tip through δ-ferrite in high-pressure hydrogen gas environment.
Originality/value
The dependence of the susceptibility to hydrogen embrittlement on δ-ferrite was first investigated in type 304 steel in hydrogen environment with high pressures, which provided the basis for the design and development of a high strength, hydrogen embrittle-resistant austenitic stainless steel.
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The profound impact of the COVID-19 pandemic on the film industry has underscored the growing significance of online movies. However, there is limited research available on the…
Abstract
Purpose
The profound impact of the COVID-19 pandemic on the film industry has underscored the growing significance of online movies. However, there is limited research available on the factors that influence the viewership of online films. Therefore, this study aims to use the signaling theory to investigate how signals of varying qualities affect online movie viewership, considering both signal transmission costs and prices.
Design/methodology/approach
This study uses a sample of 1,071 online movies released on the iQiyi from July 2020 to July 2022. It uses OLS regression and instrumental variable method to examine the impact of various quality indicators on the viewership of online movies, as well as the moderating effect of price.
Findings
After conducting a thorough analysis of this study, it can be deduced that the varying impacts on online movie viewership are attributed to disparities in signal transmission costs. Specifically, star influence and rating exhibit a positive effect on the viewership of online movies, whereas the number of raters has a detrimental impact. Furthermore, there exists an “inverted U-shaped” relationship between the number of reviews and online movie viewership. Additionally, within the consumer decision-making process, both price-cost and price-quality relationships coexist. This is evident as prices negatively affect online movie viewership but positively moderate the relationship between rating, number of reviews and online movie viewership.
Originality/value
The research findings of this study offer valuable insights for online film producers to effectively leverage quality signals and pricing, thereby capturing market attention and enhancing film profitability.
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This paper aims to determine to what extent hotels and peer-to-peer (P2P) facilities are substitutes for travelers. It then examines whether hotels target business travelers and…
Abstract
Purpose
This paper aims to determine to what extent hotels and peer-to-peer (P2P) facilities are substitutes for travelers. It then examines whether hotels target business travelers and P2P facilities target leisure travelers.
Design/methodology/approach
The author collected characteristics of Shanghai hotels and P2P facilities from websites to determine on what basis the two accommodation types compete. The author then conducted a modified importance-performance analysis (IPA) to determine the relationship between accommodations' provision of these characteristics and their importance to Chinese business and leisure travelers.
Findings
The characteristics of hotels and P2P facilities systematically differ, and travelers perceive these differences as important. While the differences are significant across all price ranges, they are smaller for budget hotels than for high-end hotels. The modified IPA indicates that P2P facilities appeal more to leisure travelers than to business travelers. Yet hotels better satisfy the requirements of both types of travelers.
Practical implications
The findings imply that P2P facilities can target lower- and middle-income vacationing families by charging lower prices. High-end hotels can compete by providing more diverse services and greater value to business travelers and higher-income leisure travelers. Budget hotels can reduce costs by not providing non-essential characteristics.
Originality/value
This paper contributes to the discussion of the competition between hotels and P2P facilities by focusing on the Shanghai market. It uses the modified IPA to derive implications for lodging market segmentation.