Accounting and Finance

Abstract Interest in why firms conduct environmental, social and governance (ESG) activity is longstanding and increasing. Our understanding, however, remains fragmented with alternative accounts that seek to explain the relationship between ESG performance (ESGP) and corporate financial performance (CFP). This paper reviews alternative accounts for the relationship and finds that the weight of empirical evidence shows a positive, statistically significant but economically modest ESGP–CFP link, consistent with theoretical expectations. This economically modest relationship suggests ESG activity is unlikely to be primarily motivated by narrow measures of CFP. Further scholarship viewing ESG as part of overall firm activity would be constructive.

Danny Z. X. Huang

Account Finance

Environmental, social and governance (ESG) activity and firm performance: a review and consolidation

环境、社会和治理（ESG）活动与企业绩效：回顾与整合

Abstract Employees are the most fundamental stakeholders in business operations, and safeguarding their rights and interests is an important manifestation of a firm's level of social responsibility. Little research has addressed whether hometown CEOs can affect employee‐related CSR (E‐CSR) and how the corporate ownership and regional economic development would moderate such an impact. Using an informal institutional perspective, we extend the literature on CEO characteristics by exploring the factors leading to employee welfare. Analysing a panel dataset of 1018 firms from Chinese A‐share listed companies between 2008 and 2020, we find a positive relationship between hometown identity and E‐CSR. Further research indicates that the effect is more pronounced in state‐owned enterprises and underdeveloped areas. Against the backdrop of weak labour protection in China's labour market, we contribute to research on informal institutions and employee benefits in pursuing harmonious labour relations.

Lingxue Yi

Yichi Jiang

Do hometown <scp>CEOs</scp> treat their employees better? Evidence from China

家乡CEO是否更善待员工？来自中国的证据

Abstract This paper investigates the impact of Chinese firms' environmental, social, and governance (ESG) performance on their financial constraint and financing activities. We find a negative association between firms' ESG performance and their financial constraint driven by the Chinese government's commitment to tackling climate change. Compared with state‐owned enterprises (SOEs), non‐SOEs have alleviated their financial constraint through both equity and debt issuance, thanks to the stock price appreciation and green credit. High‐pollution firms benefit from both equity and debt issuance, while low‐pollution firms mainly finance through equity issuance. Our findings demonstrate the leading role of the Chinese government in its domestic capital markets.

Xuejing Guo

Shi Li

Xiaoping Song

Zilin Tang

ESG, financial constraint and financing activities: A study in the Chinese market

ESG、财务约束与融资活动：基于中国市场的研究

Abstract This study examines the impact of local political corruption on investors’ evaluation of firms’ mergers and acquisitions (M&amp;As) in the US. Using the number of corruption convictions of government officials reported by the US Department of Justice, we find that acquirers in more corrupt court districts experience lower acquirer announcement returns, lower combined acquirer and target announcement returns, and are less likely to complete acquisitions. We further find that the relation between local political corruption and acquirer announcement returns is worsened when acquirers operate primarily in the headquarters state. Overall, the results suggest that local political corruption has an adverse impact on investors’ evaluation of a firm’s M&amp;A profitability.

Xuejun Jiang

Louise Lu

How do US investors perceive the risk of local political corruption? Evidence from acquisition announcement

美国投资者如何感知地方政治腐败风险？来自收购公告的证据

Abstract This article reviews and integrates the empirical literature on the measurement of investment efficiency in the areas of accounting and finance. We identify the theories behind the measures and provide a framework which organises the measures of investment efficiency into three groups: those based on neoclassical theories, agency theory and real options theory. Furthermore, the advantages and disadvantages of each type of measure are discussed, allowing researchers to compare and then ascertain the most appropriate measure for their research purpose and research context.

Ru Gao

Xin Yu

How to measure capital investment efficiency: a literature synthesis

如何衡量资本投资效率：文献综述

Abstract This study documents that greater availability of residential high‐speed broadband internet in the area around a firm's headquarters is associated with an improvement in the quality of analysts' information, and the information efficiency of stock prices, for local firms. These results are driven by firms in areas with two and fewer local broadband providers, consistent with these firms benefiting more from additional information dissemination by locals. Increased internet penetration is also positively associated with locals producing more stock tweets about local firms. Our study provides evidence that increased broadband penetration is associated with positive information externalities for local firms.

Anna Bergman Brown

Zhiyuan Tu

Does increased broadband internet penetration improve the quality of investors' information about local firms?

宽带互联网渗透率提高是否改善了投资者对本地企业的信息质量？

Abstract This study explores the practical impact of blockchain technology (BCT), which contrasts strongly with literature that has predominantly hypothesised BCT's potential to disrupt accounting practice. We interviewed 44 practitioners and academics with knowledge of BCT across 13 countries and industries. We employed the technological context of the technological, organisation and environmental (TOE) theoretical framework within a constructivist‐interpretivist paradigm to understand any nuanced practical realities of BCT's impact. Our research ascertained an expectation gap regarding the expected BCT impacts on accounting and auditing practices versus the current reality. Our findings support the sceptics and oppose prior enthusiastic claims that BCT disrupts accounting and auditing functions.

Musbaudeen Titilope Oladejo

Vida Botes

Mary Low

Steve Reeves

Blockchain technology disruptions: Exploring accounting and auditing academics and practitioners' perception

区块链技术颠覆：探索会计与审计学术界和从业者的认知

Abstract In this paper, we document tension in the effects of strategic alliances on partner firms' profitability and stability in China in that the formation of strategic alliances decreases partner firms' short‐term profitability but increases their operating stability. However, the unique institutional features of the Chinese market, namely, relational networks and the stakeholder‐driven governance model, can relieve this tension. We also find that societal trust, a remedy for weak formal governance and legal protection, helps mitigate the deterioration of profitability and strengthens the positive relationship between strategic alliances and stability. Lastly, we document a positive effect of strategic alliances on partner firms' Tobin's Q , suggesting that the market values a powerful network of stakeholders related through alliances. Our study emphasises the distinct mechanisms of value creation through strategic alliances in emerging markets and the role of market institutions, governance, and socio‐economic structures in shaping these mechanisms.

Yanyan Wang

Liwei Fan

Ran An

Lisheng Yu

Strategic alliance, trust and accounting performance stability

战略联盟、信任与会计业绩稳定性

Abstract This study examines the impact of the financial stress index (FSI) and equity market uncertainty (EMU) on the crude oil spot markets, namely, Brent and West Texas Intermediate (WTI). We use the nonlinear autoregressive distributed lag (NARDL) framework with structural breaks to assess the impact of FSI and EMU across various sub‐periods. Our analysis finds a statistically significant asymmetric impact of FSI and EMU on the oil returns in the long run. A rise (fall) in the FSI (EMU) results in a larger increase (decrease) in the oil returns as compared to a fall (rise) in the FSI (EMU) and the corresponding decrease (increase) in the returns. Further, the asymmetric effect in the short run is observed only for EMU. These findings suggest that in response to a rise or fall in the financial stress levels and uncertainty in the equity markets, investors respond differently and show a preference for oil as an alternate asset class in the long run. In addition to this, we also find evidence in support of its suitability for investment purposes during periods of heightened financial stress and high volatility such as the global financial crisis (GFC), the recent COVID‐19 pandemic, and the Russia–Ukraine war. Our results have clear policy implications for oil companies, investors, regulators, and policy‐makers.

Saswat Patra

Kunjana Malik

Can oil be used as an alternate asset for investment? Unveiling new insights using the <scp>NARDL</scp> model incorporating structural breaks

石油能否作为投资替代资产？利用结合结构断点的<scp>NARDL</scp>模型揭示新见解

Abstract This study investigates the impact of common institutional ownership on commonality in liquidity. We find that common institutional ownership reduces commonality in liquidity through synergistic governance, which is driven by the economy of scale and externality of common ownership. However, the negative relationship is weakened by exit threats of common ownership, emphasising the important role of active investor monitoring. We show that information transparency is the primary channel through which common institutional ownership reduces liquidity commonality. Moreover, the impacts are more pronounced for large‐cap stocks, and firms with high institutional ownership stability and high stock pricing efficiency.

Xiaoyu Chen

Common institutional ownership and commonality in liquidity: Evidence from China

共同机构所有权与流动性共性：来自中国的证据

Abbreviation	Account Finance
Journal Impact	3.19
Quartiles(Global)	BUSINESS, FINANCE(Q2)

ISSN	0810-5391, 1467-629X
h-index	64

Publication Information	Publisher: Wiley-Blackwell，Publishing cycle: ，Journal Type: journal，Open Access Journals: No
Basic data	Year of publication: 1979，Proportion of original research papers: 94.66%，Self Citation Rate:6.50%， Gold OA Rate: 25.32%

Accounting and Finance

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