Trust and Stock Price Synchronicity: Evidence from China

Qiu, Baoyin; Yu, Junli; Zhang, Kuo

doi:10.1007/s10551-019-04156-1

Cited by 79 publications

(30 citation statements)

References 34 publications

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“…The results of this study confirm the results of previous studies (i.e., Audi et al, 2016;Qiu et al, 2019). Qiu et al (2019) state that the positive effect of trust on firm value indicates that companies with a high level of social trust tend not to be involved in conflicts of interest thus, this makes investors confident to invest. The results of this study also verify hypothesis 2, namely related party payables have a positive influence on the firm value.…”

Section: Resultssupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

“…Trust is one of the factors that cause an increase in firm value (Cao et al, 2016;Audi et al, 2016;Qiu et al, 2019). Companies with a high level of trust tend to experience a higher share value and low information asymmetry (Qiu et al, 2019). A work environment with a high level of trust makes investors more audacious to invest as it encourages them to expect for high returns.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, this research aims to fill in the gaps by using secondary data measurements. Qiu et al (2019) stated that companies with a high level of trust tend to experience an increase in share value and low information asymmetry. The statement describes a work environment with a high level of trust that tends to make investors eager to invest due to the level of trust maintained by each other.…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Trust and Related Party Transaction on Firm Value

Ramadhani¹,

Diantimala

Arfan³

2022

Jurnal Ilmiah Akuntansi dan Bisnis

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This study examines the effect of trust and related party transactions on firm value. The total observation in this study is 185 banking companies listed on the Indonesia Stock Exchange for the 2016-2020 period. Multivariate analysis is employed to test the hypothesis. The results illustrate that the trust and related party transactions have a positive and significant effect on firm value. This implies that the disclosure of the word 'trust' in the management discussion and analysis report (MD&A) reflects that the company's ethical culture and good management responsibility in managing the business convince investors to invest. The increase in debt-related party transactions shows that it is easier for the companies to receive funding to finance the company's operational activities and increase investment rather than making loans with the third parties which seems to be complicated to approach. Keywords: trust, related party transactions, firm value, MD&A

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Section: Resultssupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Effect of Trust and Related Party Transaction on Firm Value

Ramadhani¹,

Diantimala

Arfan³

2022

Jurnal Ilmiah Akuntansi dan Bisnis

View full text Add to dashboard Cite

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“…As a form of cultural traditions, social trust is passed down through social groups, families and religions, and finally forms an informal institution (Putnam, 1993; Guiso et al , 2006; 2008). Following Wu et al (1976), Ang et al (2015) and Qiu et al (2019), we used the provincial index of social trust in the Chinese Enterprise Survey System constructed in 2000. This index shows corporate and business leaders’ understanding of social trust.…”

Section: Methodsmentioning

confidence: 99%

Does social trust restrain firm financing violations? Evidence from China

Qiu¹,

Chan

2019

Accounting & Finance

Self Cite

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We use a sample of Chinese firms to examine the impact of social trust, as an informal institution, on firm financing violations. Our findings suggest that when a firm is located in a region with high social trust, it commits fewer financing violations than those committed by firms in a region of low social trust. The results are robust for alternative measures of financing violations (fraudulent activities when issuing new shares, changing the use of new funds to uses other than the stipulated purposes, or illegally using third‐party loan guarantees), social trust, and after using instrumental variables estimation to account for endogeneity. Additional analysis suggests that the impact of social trust on restraining financing violations is more pronounced for firms having lower interest costs, facing low industry competition, located in high marketisation regions, and having good internal control. The findings show that the impact of social trust on financing violations is moderated by the economic reality of the firm (interest costs and competition), the formal institutional environment (level of marketisation), and the internal governance of a firm (internal control).

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Exploring the power of informal institutions: How does social trust affect corporate's greenwashing strategy

Shuang,

Lu,

Wang

et al. 2024

Bus Strat Env

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Corporate greenwashing seriously impedes global sustainable development. Despite the discussion on the factors influencing corporate greenwashing strategy, the impact of informal institutions, particularly social trust, remains underexplored. Based on institutional theory and the attention‐based view, this study examines the effect of social trust on corporate greenwashing strategy. Additionally, it also explores the mediating roles of managers' environmental attention and firms' green open innovation, as well as the moderating roles of government environmental regulation and market competition. Using a sample of 3,143 heavily polluting companies listed on China's A‐share market, the results show that social trust negatively impacts corporate greenwashing strategy. Managers' environmental attention and firms' green open innovation are the chain mediators through which social trust constrains firms' greenwashing strategy. Moreover, government environmental regulation strengthens the effect of social trust on corporate greenwashing, while market competition weakens the effect. The obtained conclusions provide an important guidance for curbing corporate greenwashing strategy and highlight the role of social trust.

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Trust and Stock Price Synchronicity: Evidence from China

Cited by 79 publications

References 34 publications

The Effect of Trust and Related Party Transaction on Firm Value

The Effect of Trust and Related Party Transaction on Firm Value

Does social trust restrain firm financing violations? Evidence from China

Exploring the power of informal institutions: How does social trust affect corporate's greenwashing strategy

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