Does external finance pressure affect corporate disclosure of Chinese non-state-owned enterprises?

Yue-jin, Tan; Zhu, Zhenmei; Zeng, Cheng; Gao, Minghua

doi:10.1016/j.irfa.2014.01.004

Cited by 22 publications

(8 citation statements)

References 58 publications

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“…This finding is consistent with legitimacy theory, which argues that larger companies tend to pay more attention on social and environmental issues than smaller ones because they want to align their interests to the community and environment ones [13]- [15] for legitimacy reasons. Furthermore, the finding is in line with previous studies concerning firm size and social and environmental issues [7], [16], [19]- [23], [59] including pollution and green management [17], [20], [23]- [25] The second findings of this study indicated that foreign ownership significantly affects green investment. This means that companies implemented green investment because of pressures from foreign shareholders.…”

Section: Findings and Discussionsupporting

confidence: 91%

“…In fact, as claimed by legitimacy theory, large companies are committed to environmental issues as such commitment can be used to gain and maintain legitimacy. Previous studies showed that big companies are more transparent in implementing and reporting their environmental and social policies [16]- [19]. Moreover, government puts more attention on larger companies than smaller ones in regard to any company policies concerning social and environmental issues.…”

Section: Hypotheses Development 21 Firms Size and Green Investmentmentioning

confidence: 99%

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Does Green Investment Increase Financial Performance? Empirical Evidence from Indonesian Companies

et al. 2018

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The negative effects of globalization and rapid growth of industries on environment have changed the business paradigm from profit issues to profit, people and planet (triple bottom line). Consequently, a number of companies have invested their money in environmental issues (called as green investment). This study aims to investigate the effect of firm characteristics on green investment and how green investment influences financial performance. Using annual reports of companies receiving the Program for Pollution Control, Evaluation and Rating (PROPER) award and listed on the Indonesia Stock Exchanges in the year of 2009-2014 as research data, the findings showed that firm size, foreign ownership, industry profile, and frequency of audit committee meeting significantly influenced green investment whereas ISO14001 management certification had no effect on it. Interestingly, green investment positively determined an increase in firm financial performance. This reveals that the better the green investment, the higher the financial performance of the companies. The findings contribute to the importance of adopting green investment as a company's strategy to increase profit without destroying the environment. Secondly, this finding can be used by government as a reference for formulating any regulations concerning business and environment. Finally, the finding contributes to the importance of including environmental issues in business education.

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Section: Findings and Discussionsupporting

confidence: 91%

Section: Hypotheses Development 21 Firms Size and Green Investmentmentioning

confidence: 99%

Does Green Investment Increase Financial Performance? Empirical Evidence from Indonesian Companies

et al. 2018

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“…Similarly, as per the agency theory, voluntary risk disclosures reduce information asymmetry among investors (Okongwu et al , 2013) and helps in anticipating future earnings (Moumen et al , 2015), and also contribute to the firm value (Al-Maghzom et al , 2016). Capital need theory states that voluntary disclosures reduce the cost of capital (Tan et al , 2014), which eventually contributes to firm-value creation. Similarly, stakeholder theory and legitimate theory support the argument that manager discloses information to act in favour of stakeholders (outsiders), display themselves legitimate and eventually gain their trust to raise funds (Freeman, 1984; Woodward et al , 1996).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Risk disclosures and firm value: the role of governance in an emerging market

Jain

Raithatha

2021

IJPPM

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PurposeThe objective of this paper is to investigate the impact of risk disclosures on firm value. We further investigate whether effective governance moderates the relation between risk disclosures and firm value.Design/methodology/approachWe use a sample of the top 200 Indian listed firms on NSE from 2013 to 2018. The generalised method of moments (GMM) along with the ordinary least square (OLS) is used to investigate our research problem. Further, we use the Propensity Score Matching (PSM) technique and the Heckman selection model for correcting selection bias in the robustness section.FindingsWe find that higher risk disclosures result in lower firm value. Besides, we show that better governance minimizes the negative impact of risk disclosures on firm value. This finding encourages firms to have a good governance mechanism to mitigate the adverse effects of risk disclosures in public.Originality/valueThe main contribution of our paper is to examine the moderating effect of governance between risk disclosures in the annual report and firm value (market-based and accounting-based) in the context of an emerging economy. Moreover, the paper highlights the potential moderating effect of independent directors and resourceful boards on the risk disclosures and firm value in the Indian context.

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“…Financial institutions may be tempted to use firm's balance sheet information, such as profitability, financial health, previous loan payment history, as market signal of credit worthiness and to determine the eligibility of a firm for access to loans, since these information can be easily monitored (see Brealey et al, 1977;Fama, 1984). However, balance sheet information, on the other hand, is easily manipulated and often cannot convince outsiders about the true value of a firm (Tan et al, 2014). Institutions and firms relying on accounting information are deemed to suffer from information asymmetry problem.…”

Section: J O U R N a L P R E -P R O O Fmentioning

confidence: 99%

“…Anecdotal evidence seems to show that financial institutions tend to base their lending decisions on bank relations or firms' balance sheet information, which is subject to window dressing. Tan et al (2014) does find evidence that non-state Chinese listed firms manipulate their earnings to meet the performance targets required by the stock market in order to raise equity finance. Johan and Wu (2014) also find that the quality of the lender-borrower relationship makes no contribution to small firms' access to debt in China or Canada.…”

Section: Introductionmentioning

confidence: 99%

Do productive firms get external finance? Evidence from Chinese listed manufacturing firms

Chen

Matoušek

2020

International Review of Financial Analysis

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Does external finance pressure affect corporate disclosure of Chinese non-state-owned enterprises?

Cited by 22 publications

References 58 publications

Does Green Investment Increase Financial Performance? Empirical Evidence from Indonesian Companies

Does Green Investment Increase Financial Performance? Empirical Evidence from Indonesian Companies

Risk disclosures and firm value: the role of governance in an emerging market

Do productive firms get external finance? Evidence from Chinese listed manufacturing firms

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