Twenty Years of Accounting and Finance Research on the Chinese Capital Market

Abstract

The Chinese capital market has attracted increasing academic attention due to its rising global influence, ongoing regulatory reforms, and distinct institutional background. In this paper, we review scholarly accounting and finance research pertaining to the Chinese capital market in Mainland China published in Tier 1 and Asia-Pacific regional journals during the 1999-2018 period. Our review is based along four dimensions: top-cited articles, main research fields, frequently contributing authors, and emerging research trends. We find that the increasing presence of China in global capital markets, along with its ongoing economic reforms, provides academics with opportunities to investigate distinct institutional environments and utilize natural experiments. This has led to the formulation of novel accounting and finance research questions, greatly advancing our understanding of accounting and finance research.

Green M&A, legitimacy and risk‐taking: evidence from China’s heavy polluters

“…Recent surveys of the accounting and finance literature identify a substantial increase in the publication of studies dealing with green matters, including environmental sustainability and the impact of climate change on corporations, both in absolute and proportional terms. This is reflected in top‐tier journals (Linnenluecke et al , ), in journals with an Asia‐Pacific focus (Benson et al , ; ; Linnenluecke et al , ) and in the China‐focused literature (Han et al , ).…”

“…These include strategies for organisational adaptation to climate change and the market impact of climate‐related events and policies. The implications of climate change and ESP for risk assessment, risk management strategy and practice, investment strategy and valuation, and firm financial and stock price performance are also major themes (Linnenluecke et al , 2017a,b; Brooks and Oikonomou, ; Han et al , ).…”

The IPO corporate social responsibility information disclosure: Does the stock market care?

“…During the crisis, the firm value association becomes positive for those with high institutional ownership, suggesting that both the overinvestment effect and the conflict‐resolution effect depend on which one dominates under different economic conditions. Therefore, we examine how institutional investors react to IPO firms’ CSR activities and their CSR disclosures (Han et al., ). We also examine whether China's institutional investors play a role in CSR investment.…”

Regional favoritism and tax avoidance: evidence from China

“…Third, our paper extends a growing strand of research based on the Chinese market (Han et al ., ) and specifically the stream of research that examines how political influence affects corporate welfare in China. On the one hand, Piotroski et al .…”