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We propose and validate a comprehensive measure of power for the top management teams (TMTs) of publicly listed Chinese firms. We show that our measure is positively associated with the four power dimensions developed by prior research for U.S. firms as well as three Asia-relevant power dimensions, including political capital, seniority, and gender. We find that our TMT power measure is a valid proxy for TMT power for both state-controlled firms and non-state-controlled firms. We also compare our TMT power measure with one alternative TMT power proxy based on executive compensation and find no evidence that the alternative proxy is better than our measure in capturing TMT’s true power. Further, we provide evidence that the divergence between our power proxy and the power proxy based on executive compensation reflects nonmarket institutional forces in China and has important implications for corporate outcomes. This paper was accepted by Brian Bushee, accounting.

Economic factors, such as the adverse change of the industry and performance of firms, are associated with the impairment of assets reported by these firms. Listed firms with negative earnings were more likely to write off substantial assets in consecutive years, but not in the initial years of loss. However, the relationship between the impairment of assets and economic factors is insignificant after the individual effect of the firms is taken into consideration, while earnings management factors still have a significant effect on the impairment of assets, yet the difference between loss years and profitable years is insignificant. Keywords

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Aim: Despite years of empirical research, the nexus between banks development and the stock market with economic growth is still controversial. This study examined the impact of the stock market and banks development on the firm's growth in Pakistan. The sector of non-financial firms chosen for analysis and financial firms ignored because of different structure. The sample of 45 firms listed on the Pakistan Stock Exchange (PSX) from the period of 2014-2019 used for the analysis. The sample has been selected based on the firm's market capitalisation and random effect model to estimate both institution development and firm growth. We controlled the firm's profitability, interest, and inflation. The results are robust to the Estimated Generalised Least Squares (EGLS) method. Results showed that significant positive relation exists between stock market development and firm growth, while a negative association exists between banks development and firm growth. Furthermore, control variables (profitability, interest, and inflation) have a significant negative impact on firm growth. The findings contribution in literature with perspective to Pakistan because prior studies done related to developed countries. Policymakers may use this study for making policy related to firms and economic growth.