Home About us Contact
|
Home About us Contact | ||
|
|
||
Market Implications (market + implication)
Selected AbstractsMarket Implications of the Audit Quality and Auditor Switches: Evidence from ChinaJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2009Z. Jun Lin Independent audits enhance the credibility of corporate financial reports and assist investors to make rational decisions in the capital market. Nonetheless, the utility of the auditing function depends upon the quality of audits, which is determined by the independence and expertise of auditors. Hence, auditor choice and switch will not only affect an audit's quality, but will also influence decisions made by investors and other market participants. The purpose of this paper is to investigate how investors respond to the quality of audits and auditor switches in the Chinese context. Empirical results show that the quality of an audit and switching to a larger auditor have a positive (negative) impact on earnings response coefficients (ERCs) for firms with positive (negative) abnormal earnings. In contrast, switching to a smaller auditor has a negative (positive) impact on ERCs for firms with positive (negative) abnormal earnings. These results suggest that large auditing firms (Top 10) in China are perceived as more effective for curbing income-increased earnings management, which leads to higher (lower) ERCs for clients with positive (negative) abnormal earnings. Firms' switching to a larger auditor may signal high-quality earnings. Therefore, investors more often increase stock prices when firms have positive abnormal earnings and less often depreciate prices for negative abnormal earnings. Similarly, switching to a smaller auditor may signal lower earning quality, resulting in opposite market responses. In general, the empirical evidence suggests that audit information is valued by the capital market in China. Large auditing firms have been able to product-differentiate themselves within the Chinese stock market. [source] Securities Regulation, the Timing of Annual Report Release, and Market Implications: Evidence from ChinaJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2006In-Mu Haw Using a sample of earnings announcements of Chinese firms in the fiscal years 1994,1999, covering the periods before and after the introduction of a regulation to stagger the release of annual reports, we reassess the relation between earnings news and the timing of earnings announcements. We find that even though the reporting lag has significantly shortened as a result of the regulation, the pattern whereby good news is announced earlier than bad news persists. We then examine the behavior of stock prices before earnings announcements and find some indication of information leakage. These findings suggest that the regulation had the expected effect of reducing reporting delay and earnings release clustering. Yet, it did not appear to reduce the extent of the pre-announcement leakage of information. [source] Labour market implications of EU product market integrationECONOMIC POLICY, Issue 30 2000Torben M. Andersen European labour markets are in a state of flux due to the changing market situation induced by international integration. This process affects wage formation through more fierce product market competition and increased mobility of jobs. This development is by some observers taken to enforce labour market flexibility, while for others it signals an erosion of social standards and in turn possibly the welfare society. Since labour is not very mobile in Europe, the effects of international integration on labour markets are mostly indirect via product market integration. We review the channels through which product market integration affects labour markets and perform an empirical analysis of the convergence and interdependencies in wage formation among EU countries. We find that integration is changing labour market structures and inducing wage convergences as well as stronger wage interdependencies, but it is a gradual process. Moreover, the present study does not support the view that international integration will lead to a ,race to the bottom' and rapidly erode domestic labour markets standards, nor that it will relieve politicians of the need to consider labour market reforms to improve labour market performance. [source] Work, Wages and Gender in Export-Oriented Cities: Global Assembly versus International Tourism in MexicoBULLETIN OF LATIN AMERICAN RESEARCH, Issue 1 2007CHRISTOPHER R. TAMBORINI Drawing on a rich source of urban labour market data, the Mexican National Urban Employment Survey of 1998, this article addresses the question of how dissimilar export-oriented industries shape urban labour markets, particularly with respect to women workers. It compares Ciudad Juárez, which has an economy based on global assembly production, and Cancún, whose economy is based on international tourism. Employing economic base theory and location quotients, the analysis isolates the impact of the export sectors on the local labour markets. Results show that global assembly and international tourism encourage a mix of occupational and income prospects for both men and women in each of these Mexican cities. Female employment tends to be concentrated in the export-oriented sector in both cases, but the types of occupational and income opportunities therein vary. Overall, the analysis challenges common exploitation arguments that tend to stress the universally shared deleterious working conditions and low wages that result from global integration and export-led industrialisation in contemporary Latin America. It suggests that we pay closer attention to the diverse nature of outward oriented industries, which will tend to differentiate the labour market implications of increasing economic globalisation. [source] | ||||||||||