Suchergebnisse

AbstractUsing the annual data of Chinese manufacturing firms over the period of 1998–2007, this paper applies the Cox proportional hazards model and analyzes the impact of inter‐provincial market segmentation on the exit hazard of firms in China. This study shows that market segmentation increases the risk of enterprises exiting the market in China. Moving from the 10th percentile of the distribution of market segmentation (score of 0.0995) to the 90th percentile (score of 0.7084) would increase the exit probability of firms by 7.5 percentage points. An analysis of the mechanisms involved shows that market segmentation benefits are often outweighed by lower productivity and less incentive to innovate. Our study also demonstrates that inter‐provincial market segmentation facilitates the likelihood that state‐owned enterprises (SOEs) will survive, but not for non‐SOEs in China. A one unit increase in the degree of regional market segmentation will reduce the probability that SOEs withdraw from the market by 19.5% while increasing the probability that non‐SOEs will leave the market by 5.80%.

China's economic reform over the past 30 years has allowed the free market to drive economic development. However, government still plays a key role in the energy sector by allocating energy conservation and emissions abatement. How does the government make an equity decision as a tradeoff to market efficiency? This is an unanswered question. The purpose of this paper is to illustrate the government's preference toward equity and efficiency. Using the provincial level CO2 intensity allocation data, we investigate the political decision that the government made based on the equity and efficiency criteria. We find that the equity index plays a more important role than the efficiency index in determining the CO2 intensity target. In addition, political factors such as social stability are found to be important factors.

Our study proposes firm bankruptcy prediction using logit analysis after the passage of the Sarbanes-Oxley (SOX) Act using 2008-2009 U.S. data. The results of our logit analysis show an 80% (90% with one year before bankruptcy data) prediction accuracy rate using financial and other data from the 10-K report in the post-SOX period. This prediction rate is comparable to other data mining tools. Overall, our results show that, as compared to the prediction rates documented by other bankruptcy studies before SOX, firm bankruptcy prediction rates have improved since the passage of SOX. Our findings shed light on the benefits of SOX by providing evidence that legislation makes the financial reporting more informative. This study is important for regulators to implement public policy. Investors may be interested in our findings to better assess company risk when making portfolio decisions.