Capital Market and Corporate Misbehaviour in China
Special issue call for papers from China Finance Review International
Dr Jia Liu, Salford University, UK
Prof Khelifa Mazouz, Cardiff University, UK
China’s capital market has achieved unprecedented development over past 25 years since its inception in 1990, and made tremendous contribution to the economic growth, which keeps China stay on its course to become the world’s large economy. As is unfolded, however, the development is coupled with huge swings in the stock market and frequent crashes, as evidenced by the recent declines in stock market, which have triggered speculation that the Chinese economic miracle may be finally coming to an end. Doubtless, instability of the nation's stock market is often hobbled by corporate misbehavior and a lack of market transparency, leaving investors embittered and peevish about their losses. Corporate misbehaviours, not the least exemplified by corporate scandals, arbitrage through and abuse of imperfect systems, inevitably maximizing shareholders’ wealth through the pursuit of private profit, and immature and self-interest driven practice, had all contributed to recent investor distrust of the corporate sector.
The special issue aims to explore the issues surrounding corporate misbehavior in the capital market, and examine their interactions with other stakeholders and the capital market on the whole. It is also intended that the special issue will investigate the implications for sustainability of the capital market and value creation to investors.
To this end, we seek contributions which examine and also those which step beyond traditional models of irrationally non-maximizing corporations and purely self-interested management competing in an evolutionarily determined market. Instead, new scholarship is taking a richer perspective infused with the insights of (individual and group) psychology, recognitions of institutional realities, and broader conceptions of economic wealth.
We encourage researchers to address new, unexplored, related topics, to apply emerging theories and empirical methods, to challenge conventional wisdom and to seek out new data sets. The study should not be limited to China’s market, but can be extended to Hong Kong. Comparative studies of other markets with China’s market are also encouraged. Theoretical and empirical papers, as well as review papers are equally welcome.
We invite colleagues’ attention to the following, by no means exclusive, possibilities:
- Opportunities for corporate misbehaviour, such as overstatement of value, off balance sheet abuse, capitalising revenue, special purpose vehicles, exploration of fair value accounting, market-to-market accounting rules and earnings management
- Influence of corporate (mis)behaviours on strategic options and mobilization of stakeholders and influence of differential experience and culture associated with corporate misbehaviours
- Taxation issues, avoidance and evasion associated with merger and acquisition
- Financing decision, and motives behind initial public offerings and seasoned finance; insights into the theory and practice of corporate finance and governance, financial planning and control, and financial reporting, which can be gained by exploration of equity issuance markets
- The extent of corporate financial reporting’s responsibility for financial market instability and shareholder value creation and the impact of evolving standards, such as IFRS, on markets and behaviour
- Business ethics and corporate governance
- The role and evolution of institutional investors and corporations, and the engagement of institutional investors with other stakeholders
- Accounting quality (Impact of government pressure and agency problems including mergers and acquisitions, and attempts to improve the quality of accounting regulation and auditing)
- Risk and financial innovation
The papers for the special issue will be subjected to double-blind peer review in line with the journal’s normal practice.
Submission of manuscripts:
Please submit your manuscript online at http://mc.manuscriptcentral.com/CFRI by 30 December 2016. Please prepare your manuscript according to the journal’s author guidelines, available here.
There is no paper submission fee. For queries, please contact Dr Jia Liu at [email protected]