Capital market research in taxation: Do it in China!

This paper is a review and aims to present and interpret the results of previous research carried out in the context of reducing the problems associated with '(scale effects " in capital market research. Evaluating the results of investigations in the field shows that deflating all the elements of the regression model using suitable deflator is the preferred approach of dealing with scale problem in research. However, there is no agreement among researchers on the best deflator and studies on scale effect sought to be continued.

The impact of firms' environmental, social and governance (ESG) performance, as an important dimension of corporate sustainability, on stock liquidity has been an important topic in capital market research. This study utilizes the data of listed Chinese manufacturing companies from 2018 to 2022, and adopts the ridge regression algorithm in machine learning to re-predict the ESG scores of firms, thus innovatively analyzing the specific impact of firms' ESG performance on stock liquidity and its potential mechanism. It is found that firms' ESG performance significantly enhances stock liquidity, and the above conclusion still holds after a series of robustness tests. Heterogeneity analysis shows that the effect of firms' ESG performance on stock liquidity is more significant among state-owned enterprises, capital-intensive firms, and firms with a high proportion of short-term institutional investors' shareholdings. Specifically for each dimension of ESG, environment (E), social responsibility (S) and corporate governance (G) all have significant positive impacts on stock liquidity, with the corporate governance dimension being the most significant. Heterogeneity analysis reveals that the enhancing effect of corporate ESG performance on stock liquidity is more significant among firms that are heavy polluters, have external social donation behaviors, and have two positions in management. This study provides a new perspective for understanding the drivers of corporate stock liquidity in the capital market, which is important for promoting corporations to enhance their capital market performance and thus achieve sustainable development.

Numerous controversies — from goodwill amortisation to the appropriateness of fair value accounting — illustrate both the importance of measurement questions, and the difficulty often encountered in devising accounting measurement “solutions” that are widely accepted. This paper discusses what might be learned about accounting measurement questions from the perspective of capital markets-based research. While this field of inquiry is not well developed, there are indications that further research from the capital markets perspective could provide useful conclusions about accounting measurement.

Industry classification has served as an important tool for sector analysis in capital market research. Most of the existing classification schemes that are commonly used in academia or industry research require human input in the process of its design and construction. Because compilation and maintenance of such schemes demand comprehensive domain knowledge, it is highly costly and exhaustively time-consuming to update them to correctly reflect the fast-changing trends of the market. In addition, due to its subjective nature, interpretability is limited. As a remedy to such shortcomings, this paper adds to our earlier work, Business Text Industry Classification (BTIC) and proposes a new classification scheme, Business Text Industry Network (BTIN), namely, that automatically produces industry groupings based on the textual information from the corporate disclosures and news articles. BTIN exploits the business section of the Form 10-Ks, in which firms describe their business identities in a rich context, as well as the contents of news articles, which represent market perception of the subject firm. We employ Doc2vec for document embedding and a novel news curation algorithm to represent the relationship among firms in a graph structure, and then apply Louvain method to detect communities ??? or, industries ??? from the network and categorize firms into BTIN groups. Evaluation results using market ratios show that BTIN performs quite competitively against SIC, GICS, and its predecessor, BTIC, in terms of clustering fitness, inter-industry heterogeneity, and intra-industry homogeneity.

This paper analyses measures used to calculate long-horizon abnormal performance within overreaction studies. A simulation study is conducted to document the properties of commonly employed performance measures with the ain1 of providing guidance on the most appropriate method. The bias and mean square error of performance measures is documented along with the size and the power of associated test statistics. The results suggest that the popular index benchmarks used throughout the overreaction literature are severely biased and yield test statistics that are misspecified. In contrast, a matched stock benchmark based on size and industry performs consistently well. Overall, the findings of the simulation have direct implications for overreaction studies and capital market research in general.

ABSTRACTWe commemorate the 50th anniversary of Ball and Brown [1968] by chronicling its impact on capital market research in accounting. We trace the evolution of various research paths that post–Ball and Brown [1968] researchers took as they sought to build on the foundation laid by Ball and Brown [1968] to create a body of research on the usefulness, timeliness, and other properties of accounting numbers. We discuss how those paths often link back to the groundwork laid and questions originally posed in Ball and Brown [1968].

Commemorating the Fifty-Year Anniversary of Ball and Brown (1968): The Evolution of Capital Market Research over the Past Fifty Years

Measuring Qualitative Information in Capital Markets Research

Analysis of share prices and stock market indexes has actually attracted the attention of financial analysts, capital market participants and researchers alike. This study is based on share price data on selected companies listed on the New York Stock Exchange as well the market activities of major stock market indexes in the US. The data collated were on monthly basis from January 2000 to February 2017. Trends of these series were plotted and further emphasis highlighted with a descriptive statistics. Share prices and stock market performance trends over the period appear similar. There were perceived signs of stability between January 2000 and 2008:Q2. However, the adverse effects of the 2008 global financial crisis were visible and significant as all the series nosedived, notably between 2008:Q3 and 2009:Q2. From our evidence, relative recovery from the crisis began to be felt from July 2009. Thereafter, the pace of growth in performances across the series has been quite impressive. Both the covariance and principal components analysis results indicate that stock market performance and share prices have direct relationship. The covariance results further showed that the relations so revealed are positive and significant. JEL: C32, F36, G15, E60 Article visualizations:

There are various economic indicators that demonstrate the strength or weakness of a country's economic condition and Gross Domestic Product is one of them, with capital market turnover contributing significantly to GDP. The broad objective of the study is to show an analysis of the importance of research and development of capital market of Bangladesh. And also is to provide identify the investors perception about the research and development of capital market of Bangladesh and give some recommendations and strategic insight to improve the quality research to contribute on future development of the capital market of Bangladesh. Moreover, How Capital Market Research will help to improve the capital market growth, finding new opportunities, diversifying market products and segmentations, improving Market efficiency, attracting foreign investment, increasing liquidity as well as making investment decisions. The research is based on a structured questionnaire survey procedure. The findings revealed that investors are interested in investing in the secondary market with lack of enough knowledge, confidence and market expertise.

The main aim of this chapter is to propose a conceptual framework for the inter-disciplinary analysis of (1) various disciplines including corporate governance, capital markets, accounting practices, agency costs and financial accounting information, and (2) the discounted cash flow analysis, and MOLP modelling of capital budgeting.

Research paradigm of financial accounting and financial management based on capital market could be dividedinto five focus research areas, they were: market efficiency, economic consequences, income (earning) asa capital market research variable, accounting Information content except profit, and methodology. It wasbased on Ball and Brown research (1968), which focused on the relationship of accounting earnings informationon stock values.The purpose of this article was to describe research paradigm of financial accounting andfinancial management which used the same information based on the capital market. Therefore this articledescribed capital market variables that focused on five variables; market efficiency, economic consequences,earning as a capital market research variable, accounting information content except profit, and methodology. Theexistence of these variables would explain the accounting practices used as the basis in the capital market.

Concern over the economic consequences of accounting regulation and policy decisions has stimulated a large body of empirical research which focuses on the impact of such decisions on firms' security prices.1 One feature common to these studies is that event time and calendar time are identical for all firms' securities included in the sample. Moreover, for several of these accounting policies (e.g., leasing, oil and gas accounting), there is industry concentration among the affected firms. These factors lead to cross-sectional correlations of the dependent variable of interest

PurposeThe purpose of this paper is to understand the differences between proactive and reactive market research techniques during the development of new market offerings. The study focused on the financial and innovative performance of traditional market research techniques, such as focus groups and in‐depth interviews, in comparison to more co‐creation‐oriented techniques that are designed to capture customers' value‐in‐use.Design/methodology/approachThe study was a two‐stage process. Study I, an empirical investigation of 195 development projects in European companies, examined how these companies use different market research techniques and how this relates to the profit margins of new products and services. Study II designed an experiment with 50 users of a consumer good and evaluated the contribution of different market research techniques, based on the degree of originality and customer value.FindingsSignificant differences were found, in terms of both content and originality, between the technique based on customer co‐creation and the two traditional market research techniques (Study II). These findings can help to explain why the relationship between the use of market research techniques and profit margin (Study I) is stronger for co‐creation techniques than it is for traditional market research techniques.Originality/valueDespite empirical evidence that the application of market research techniques based on co‐creation can lead to original ideas, there is a lack of valid studies regarding how co‐creation techniques perform in relation to more traditional methods of collaboration with customers.

The development path of resource-based cities is different from that of any other cities, for the particularity of natural endowment determines industries’ various reliance on resources. After a close look at the literature relevant to the studies on the development path of resource-based cities both at home and abroad, this article has obtained the following major findings. First of all, some Chinese researchers have engaged in the study on the sustainable development of resource-based cities. This line of research mainly focuses on society, economy, resources and environment and chooses related indexes as the evaluative standards, while regardless of the unique attribute of the resource-based cities. The second finding is that many studies on the development of resource-based cities centered on the macro development of the cities, but paid little heed to the mechanism concerning the transformation of the resource-based cities. The next finding is with regard to the research methods. Generally speaking, descriptive and qualitative research methods dominated the whole body of literature in this field, while quantitative studies could be hardly seen. What has also been found is that research in this domain is of a uni-dimensional flavor, centering mainly on the economic factors and ignoring the social and ecological perspectives. In the last part of this article, we propose that future studies should put more emphasis on the sustainable development of the resource-based cities and adopt a wide range of research methods such as a mixture of qualitative and quantitative methods, ecology-oriented methods, comprehensive evaluation method of index system and the theory of dissipative structure, with an aim to enrich and diversify the study methods in this line of research and to evaluate and guide the sustainable development of the resource-based cities in a more systematic manner.