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We use daily survey data on Chinese institutional investors' forecasts to measure investors' sentiment. Our empirical model uncovers that share prices and investor sentiment do not have a long-run relation; however, in the short-run, the mood of investors follows a positive-feedback process. Hence, institutional investors are optimistic when previous market returns were positive. Contrarily, negative returns trigger a decline in sentiment, which reacts more sensitively to negative than positive returns. Investor sentiment does not predict future market movements-but a drop in confidence increases market volatility and destabilizes exchanges. EGARCH models reveal asymmetric responses in the volatility of investor sentiment; however, Granger causality tests reject volatility-spillovers between returns and sentiment.

Purpose – The purpose of this study is to explore the relationships among business strategy, market competition and earnings management. Design/methodology/approach – This paper uses 2,037 Chinese A-share listed firms from 2010 to 2012 to test the research questions using regression analyses. Findings – The firms that follow cost leadership strategy (cost leaders) are more likely to have a higher level of real earnings management. The firms that follow differentiation strategy (differentiators) are less likely to use real earnings management. For cost leaders, the market competition further increases the level of real earnings management, whereas the level of earnings management of differentiators is not significantly impacted by the market competition. Practical implications – Results of this study indicate the feasibility of differentiation strategy in China and suggest that management should be encouraged to use such a strategy or to use a hybrid strategy to achieve its operational and financial goals. Originality/value – The study contributes to the research of earning management by providing evidence on that business strategy has significant impacts on earnings management. It also shows an incremental influence of market competition on earnings management through its impacts on business strategy.

We review and summarize accounting literature that examines whistleblowing in the accounting context. We organize our review around the five determinants of whistleblowing identified by Near and Miceli (1995). The first determinant is characteristics of the whistleblower. Studies related to this determinant examine whistleblowers’ personality characteristics, moral judgment, and demographic characteristics. Studies related to the second determinant, characteristics of the report recipient, examine characteristics of the individual or individuals who receive the report and characteristics of the reporting channel. The third determinant is characteristics of the wrongdoer. Studies in this area focus on the wrongdoer’s power and credibility. Fourth, accounting studies related to characteristics of the wrongdoing examine factors that affect the dependence of the organization on the wrongdoing and evidence credibility. Studies related to the final determinant, characteristics of the organization, examine organizational perceptions of the appropriateness of whistleblowing, organizational climate, and organizational structure. For each determinant, we first summarize and analyze the findings of prior research, and then we present suggestions for future accounting research in whistleblowing.

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