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Finance
Research Highlights
Loan loss provisions and return predictability: A dynamic perspective
Phoebe Gao, Chu Yeong Lim, Xiumei Liu, Cheng Colin Zeng - China Journal of Accounting Research
The paper finds the relationship between bank loan provisions and future stock returns is contingent on bank regulations and macroeconomic conditions.
Finance and Firm Volatility: Evidence from Small Business Lending in China
Tao Chen , Yi Huang , Chen Lin , Zixia Sheng - Management Science
Alibaba provides FinTech credit for millions of MSMEs via Ant Group. Using their data, we apply RDD and find credit access reduces firm volatility.
Don's Column: Financial Statement Disaggregation
Chan-Ng Ai Lin & Kevin Koh - ISCA Journal
Using research evidence, the authors discuss the business case for companies to produce more detailed financial statements.
Bank Lines of Credit as a Source of Long-term Finance
Xin Chang, Yunling Chen & Ronald Masulis - Journal of Financial and Quantitative Analysis
This research explains why firms tend to use the most long-term credit line drawdown proceeds to finance investment, especially for M&A. These drawdowns are repaid fairly quickly, often refinanced with other long-term debt – implying that long-term drawdowns are a valuable bridge financing mechanism.
The impact of the IFRS 9 expected loss approach on accounting conservatism
Clarence Goh, Chu Yeong Lim & Kevin Ow Yong - Accountancy Business and The Public Interest
Using an experimental setting, this paper examines the impact of International Financial Reporting Standard (IFRS 9) expected credit loss approach on accounting conservatism.
The effects of financial statement disaggregation on audit pricing
Kevin Koh, Yen Hee Tong & Zinan Zhu - International Journal of Auditing
We find that auditors assess higher engagement risk and charge higher audit fees for clients with more disaggregated financial statements, as greater financial statement disaggregation is positively associated with litigation risk.
Board structure, director expertise, and advisory role of outside directors
Chen Sheng-Syan, Chen Yan-Shing, Kang Jun-Koo, & Peng Shu-Cing - Journal of Financial Economics
Firms appoint more directors with China-related experience following the U.S. Congress’ grant of Permanent Normal Trade Relations status to China and their acquisitions of Chinese firms after the grant resulted in higher firm value.
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Activist-appointed directors
Kang Jun-Koo, Kim Hyemin, Kim Jungmin, & Angie Low - Journal of Financial and Quantitative Analysis
Firms appointing directors nominated by activists experience a larger value increase that goes beyond the impact of pure activist intervention without board representation.
Monitoring the monitor: Distracted institutional investors and board governance
Claire Liu, Angie Low, Ronald Masulis, & Le Zhang - Review of Financial Studies
Distracted institutional investors are less likely to discipline directors with negative votes, causing directors to have less incentives to monitor managers.
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Improved index insurance design and yield estimation using a dynamic factor forecasting approach
Hong Li, Lysa Porth, Ken Seng Tan & Wenjun Zhu - Insurance: Mathematics, and Economics
Accurate crop yield forecasting is central to effective risk management for many stakeholders in various practices, such as crop management, insurance policy design, and premium rate setting. We investigate an innovative approach of yield forecasting and designs an enhanced weather index-based insurance (IBI) policy.
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02b75433-9feb-46ed-9724-6701d3058a19.tmb-listing.png?Culture=en&sfvrsn=4e648cdf_2 "Is this time different, for emerging markets? (Assoc Prof Lee Boon Keng)")