Corporate Transparency and the Impact of Investor Sentiment on Stock Prices

References

• Aharony J, Lee CWJ, Wong TJ (2000) Financial packaging of IPO firms in China. J. Accounting Res. 38:103–126.Crossref, Google Scholar
• Baker M, Wurgler J (2006) Investor sentiment and the cross-section of stock returns. J. Finance 61:1645–1680.Crossref, Google Scholar
• Baker M, Wurgler J (2007) Investor sentiment in the stock market. J. Econom. Perspect. 21:129–151.Crossref, Google Scholar
• Baker M, Wurgler J, Yuan Y (2012) Global, local, and contagious investor sentiment. J. Financial Econom. 104:272–287.Crossref, Google Scholar
• Ball R, Kothari SP, Robin A (2000) The effect of international institutional factors on properties of accounting earnings. J. Accounting Econom. 29:1–51.Crossref, Google Scholar
• Barber BM, Odean T (2008) All that glitters: The effect of attention and news on the buying behavior of individual and institutional investors. Rev. Financial Stud. 21(2):785–818.Crossref, Google Scholar
• Barber BM, Odean T, Zhu N (2009) Do retail trades move markets. Rev. Financial Stud. 22(1):151–186.Crossref, Google Scholar
• Bekaert G, Harvey CR (1997) Emerging equity market volatility. J. Financial Econom. 43:29–77.Crossref, Google Scholar
• Ben-Rephael A, Kandel S, Wohl A (2012) Measuring investor sentiment with mutual fund flows. J. Financial Econom. 104:363–382.Crossref, Google Scholar
• Brown GW, Cliff MT (2005) Investor sentiment and asset valuation. J. Bus. 78:405–440.Crossref, Google Scholar
• Burdekin RCK, Redfern L (2009) Stock market sentiment and the draining of China's savings deposits. Econom. Lett. 102:27–29.Crossref, Google Scholar
• Bushman RM, Piotroski JD, Smith AJ (2004) What determines corporate transparency? J. Accounting Res. 42:207–252.Crossref, Google Scholar
• Cen L, Lu H, Yang L (2013) Investor sentiment, disagreement, and breadth-return relationship. Management Sci. 59(5):1076–1091.Link, Google Scholar
• Chan KH, Lin KZ, Mo PL (2006) A political–economic analysis of auditor reporting and auditor switches. Rev. Accounting Stud. 11:21–48.Crossref, Google Scholar
• Chen GM, Firth M, Xu L (2009) Does the type of ownership control matter? Evidence from China's listed companies. J. Banking Finance 33(1):171–181.Crossref, Google Scholar
• Chen KCW, Yuan H (2004) Earnings management and capital resource allocation: Evidence from China's accounting-based regulation of rights issues. Accounting Rev. 79:645–665.Crossref, Google Scholar
• Chen S, Sun SYJ, Wu D (2010) Client importance, institutional improvements, and audit quality in China: An office and individual auditor level analysis. Accounting Rev. 85:127–158.Crossref, Google Scholar
• Cheung YL, Rau PR, Stouraitis A (2006) Tunneling, propping, and expropriation: Evidence from connected party transactions in Hong Kong. J. Financial Econom. 82:343–386.Crossref, Google Scholar
• Chinn MD, Ito H (2008) A new measure of financial openness. J. Comparative Policy Anal. 10:309–322.Google Scholar
• Choi SK, Jeter DC (1992) The effects of qualified audit opinions on earnings response coefficients. J. Accounting Econom. 15:229–247.Crossref, Google Scholar
• Das SR, Chen MY (2007) Yahoo! for Amazon: Sentiment extraction from small talk on the Web. Management Sci. 53(9):1375–1388.Link, Google Scholar
• Dechow PM, Sloan RG, Sweeney AP (1995) Detecting earnings management. Accounting Rev. 70:193–225.Google Scholar
• DeFond ML, Wong TJ, Li S (1999) The impact of improved auditor independence on audit market concentration in China. J. Accounting Econom. 28:269–305.Crossref, Google Scholar
• Deng J, Gan J, He J (2012) The dark side of concentrated ownership in privatization: Evidence from China. Working paper, Cheung Kong Graduate School of Business, Beijing.Google Scholar
• Dewenter K, Novaes W, Pettway R (2001) Visibility versus complexity in business groups: Evidence from Japanese keiretsu firms. J. Bus. 74:79–100.Crossref, Google Scholar
• Durnev A, Kim EH (2005) To steal or not to steal: Firm attributes, legal environment and valuation. J. Finance 60:1461–1493.Crossref, Google Scholar
• Durnev A, Erruna V, Molchanov A (2009) Property rights protection, corporate transparency, and growth. J. Internat. Bus. Stud. 40:1531–1562.Crossref, Google Scholar
• Eun CS, Huang W (2007) Asset pricing in China's domestic stock markets: Is there a logic? Pacific-Basin Finance J. 15:452–480.Crossref, Google Scholar
• Fama EF, French KR (1993) Common risk factors in the returns on stocks and bonds. J. Financial Econom. 33:3–56.Crossref, Google Scholar
• Fama EJ, Jensen M (1983) Agency problems and residual claims. J. Law Econom. 26:327–349.Crossref, Google Scholar
• Fan JPH, Wong TJ (2005) Do external auditors perform a corporate governance role in emerging markets? Evidence from East Asia. J. Accounting Res. 43:35–72.Crossref, Google Scholar
• Firth M, Rui OM, Wu W (2011) Cooking the books: Recipes and costs of falsified financial statements in China. J. Corporate Finance 17:371–390.Crossref, Google Scholar
• Firth M, Lin C, Liu P, Wong SML (2009) Inside the black box: Bank credit allocation in China's private sector. J. Banking Finance 33:1144–1155.Crossref, Google Scholar
• Frazzini A, Lamont OA (2008) Dumb money: Mutual fund flows and the cross-section of stock returns. J. Financial Econom. 88:299–322.Crossref, Google Scholar
• Gemmill G, Thomas D (2002) Noise-trading, costly arbitrage, and stock prices: Evidence from closed-end funds. J. Finance 57:2571–2594.Crossref, Google Scholar
• Glosten LR, Milgrom PR (1985) Bid, ask and transaction prices in a specialist market with heterogeneously informed traders. J. Financial Econom. 14:71–100.Crossref, Google Scholar
• Greenwood R, Nagel S (2009) Inexperienced investors and bubbles. J. Financial Econom. 93:239–258.Crossref, Google Scholar
• Haw IM, Qi D, Wu D, Wu W (2005) Market consequences of earnings management in response to security regulations in China. Contemporary Accounting Res. 22:95–140.Crossref, Google Scholar
• Hribar P, McInnis J (2012) Investor sentiment and analysts' earnings forecast errors. Management Sci. 58(2):293–307.Link, Google Scholar
• Hutton AP, Marcus AJ, Tehranian H (2009) Opaque financial reports, r2, and crash risk. J. Financial Econom. 94:67–86.Crossref, Google Scholar
• Jian M, Wong TJ (2010) Propping through related party transactions. Rev. Accounting Stud. 15:70–105.Crossref, Google Scholar
• Jiang G, Lee CMC, Yue H (2010) Tunneling through intercorporate loans: The China experience. J. Financial Econom. 98:1–20.Crossref, Google Scholar
• Jones JF (1991) Earnings management during import relief investigations. J. Accounting Res. 29:193–228.Crossref, Google Scholar
• Kothari SP, Leone AJ, Wasley CE (2005) Performance matched discretionary accrual measures. J. Accounting Econom. 39:163–197.Crossref, Google Scholar
• Kumar A, Lee C (2006) Retail investor sentiment and return comovements. J. Finance 61:2451–2486.Crossref, Google Scholar
• Lang M, Lins K, Maffett M (2012) Transparency, liquidity, and valuation: International evidence on when transparency matters most. J. Accounting Res. 50:729–774.Crossref, Google Scholar
• Lee CMC, Shleifer A, Thaler RH (1991) Investor sentiment and the closed-end fund puzzle. J. Finance 46:75–109.Crossref, Google Scholar
• Lemmon M, Portniaguina E (2006) Consumer confidence and asset prices: Some empirical evidence. Rev. Financial Stud. 19:1499–1529.Crossref, Google Scholar
• Lemmon ML, Lins KV (2003) Ownership structure, corporate governance, and firm value: Evidence from the East Asian financial crisis. J. Finance 58:1445–1468.Crossref, Google Scholar
• Leuz C, Oberholzer-Gee F (2006) Political relationships, global financing, and corporate transparency: Evidence from Indonesia. J. Financial Econom. 81:411–439.Crossref, Google Scholar
• Leuz C, Nanda D, Wysocki PD (2003) Earnings management and investor protection: An international comparison. J. Financial Econom. 69:505–527.Crossref, Google Scholar
• Lo AWY, Wong RMK, Firth M (2010) Tax, financial reporting, and tunneling incentives for income shifting: An empirical analysis of the transfer pricing behavior of Chinese-listed companies. J. Amer. Taxation Assoc. 32(2):1–26.Crossref, Google Scholar
• Merton RC (1987) A simple model of capital market equilibrium with incomplete information. J. Finance 42:483–510.Crossref, Google Scholar
• Neal R, Wheatley SM (1998) Do measures of investor sentiment predict returns? J. Financial Quant. Anal. 33:523–547.Crossref, Google Scholar
• Nelson CR, Kim MJ (1993) Predictable stock returns: The role of small sample bias. J. Finance 48:641–661.Crossref, Google Scholar
• Ng L, Wu F (2006) Revealed stock preferences of individual investors: Evidence from Chinese equity markets. Pacific-Basin Finance J. 14:175–192.Crossref, Google Scholar
• Peng WQ, Wei KC, Yang Z (2011) Tunneling or propping: Evidence from connected transactions in China. J. Corporate Finance 17:306–325.Crossref, Google Scholar
• Pekarek E, Meseha M (2011) Short selling—The ambrosia or kryptonite of emerging markets. Gregoriou G, ed. The Handbook of Short Selling (Elsevier, Oxford, UK), 365–380.Google Scholar
• Piotroski JD, Wong TJ (2011) Institutions and information environment of Chinese listed firms. Fan J, Morck R, eds. Capitalizing China (University of Chicago Press, Chicago), 201–242.Google Scholar
• Piotroski JD, Wong TJ, Zhang T (2014) Political incentives to suppress negative financial information: Evidence from state-controlled Chinese firms. Working paper, Stanford University, Stanford, CA.Google Scholar
• Rajgopal S, Venkatachalam M (2011) Financial reporting quality and idiosyncratic return volatility. J. Accounting Econom. 51:1–20.Crossref, Google Scholar
• Ranger-Moore J (1997) Bigger may be better, but is older wiser? Organizational age and size in the New York life insurance industry. Amer. Sociol. Rev. 62:903–920.Crossref, Google Scholar
• Reuters News (2011) China approves $750 million QFII quotas in Q4. (March 30).Google Scholar
• Rouwenhorst KG (1999) Local return factors and turnover in emerging stock markets. J. Finance 54:1439–1464.Crossref, Google Scholar
• Seybert N, Yang HI (2012) The party's over: The role of earnings guidance in resolving sentiment-driven overvaluation. Management Sci. 58(2):308–319.Link, Google Scholar
• Shanghai Stock Exchange (2011) Shanghai Stock Exchange Statistics Annual (Shanghai Stock Exchange, Shanghai, China).Google Scholar
• Sharif SA, Anderson HD, Marshall BR (2014) Against the tide: The commencement of short selling and margin trading in mainland China. Accounting Finance 54:1319–1355.Crossref, Google Scholar
• Shenzhen Stock Exchange (2010) Shenzhen Stock Exchange Fact Book (Shenzhen Stock Exchange, Shenzhen, China).Google Scholar
• Shleifer A, Vishny RW (1994) Politicians and firms. Quart. J. Econom. 109(4):995–1025.Crossref, Google Scholar
• Stambaugh RF (1999) Predictive regressions. J. Financial Econom. 54:375–421.Crossref, Google Scholar
• Stambaugh RF, Yu J, Yuan Y (2012) The short of it: Investor sentiment and anomalies. J. Financial Econom. 104:288–302.Crossref, Google Scholar
• Swaminathan B (1996) Time-varying expected small firm returns and closed-end fund discounts. Rev. Financial Stud. 9:845–887.Crossref, Google Scholar
• Wang Y, Di Iorio A (2007) The cross section of expected stock returns in the Chinese A-share market. Global Finance J. 17:335–349.Crossref, Google Scholar
• Watts RL, Zimmerman JL (1986) Positive accounting theory (Prentice-Hall, London).Google Scholar
• Wei S, Zhang C (2006) Why did individual stocks become more volatile? J. Bus. 76:259–292.Crossref, Google Scholar
• Williamson O (1967) Hierarchical control and optimum firm size. J. Political Econom. 75:123–138.Crossref, Google Scholar
• Xu Y, Malkiel B (2003) Investigating the behavior of idiosyncratic volatility. J. Bus. 76:613–644.Crossref, Google Scholar