Form Of Investment Research Articles

Overconfidence, managerial accounting competence and dividend smoothing: evidence from emerging markets

PurposeThe purpose of this research is to review the dividend smoothing effectiveness from the perspective of managers' overconfidence and accounting competence. Accounting competence is considered as an important factor in recognizing management’s ability to override internal controls as an opportunity to distort financial reports.Design/methodology/approachThe current study applies multivariable linear regression method estimator to investigate the relationship between Overconfidence, Managerial Accounting Competence and Dividend Smoothing of 1,320 firm-year observations in Iran for the period of 2012–2022.FindingsThe result show that manager overconfidence leads to dividend smoothing. Moreover, this relation is stronger in low information quality and not driven by high information quality or by others measures. This research show that accounting competence has led to positive change in the efficiency of the manager performance and reduce the self-interesting motives of manager.Practical implicationsIn the present study, the weaknesses caused by the ambiguity of capital market efficiency in market performance-based statistical models are compensated and partially covered by classifying the relationships and implementing models in each group. Results obtained from this study will aid market practitioners to evaluate the firms’ dividend smoothing. The results provide evidence and information for policymakers and investors about the theoretical gap and the factors affecting to it. It also informs policymakers to the dividend smoothing associated with the manager characteristics.Originality/valueThe previous researches emphasize on limiting agency costs by creating limits for the optimistic actions of managers, while framing and standardizing a major part of management behaviors is not possible. In this research, the manager’s executive ability has been examined in the form of accounting competence at the same time as excessive self-confidence, in order to control part of the inherent limitations caused by the managers' behavior. This study also considers the positive aspect of managers' ability in the form of accounting competence.

Study of the governance effect of institutional investor information network on earnings management

ABSTRACT Institutional investors jointly hold heavy positions can form an information network, and there is information sharing in the social network. This paper empirically tests the impact of institutional investor information sharing on earnings management behavior of listed companies. The result shows that information sharing among institutional investors can significantly inhibit earnings management behavior. The mechanism analysis shows that the effect of institutional investor information sharing on earnings management is mainly realized by affecting the quality of corporate information disclosure and investor sentiment. Further analysis shows that the impact of institutional investor information sharing on earnings management is obviously heterogeneous, and the restraining effect of institutional investor information sharing on earnings management is stronger in companies with low legal level, good information environment, good internal governance, no separation of two rights, enterprise growth stage and no relationship between government and enterprise. Based on the social network theory, this paper analyzes the influence of the interaction between institutional investors, which provides reference for further understanding the governance role of institutional investors and stabilizing the capital market.

The Effect of Inflation, Bi Rate, JUB, Exchange Rate, and SBIS on the Jakarta Islamic Index in 2010-2023

Purpose: Despite variations in economic indicators such as inflation, central bank interest rates, monetary supply, currency valuations, and Islamic financial products, the Jakarta Islamic Index maintains steady stock trading performance. The study examines how various economic factors influenced the Jakarta Islamic Index (JII) between 2010 and 2023. In particular, it explores how the index's behavior is shaped by inflationary pressures, Bank Indonesia's benchmark rate, money circulation, foreign currency exchange rates, and Islamic-compliant certificates issued by Bank Indonesia.Design/Method/Approach: The study utilizes quantitative methods, analyzing data collected over time from credible institutions such as Bank Indonesia, the Financial Services Authority, the Central Statistics Agency, and other reputable sources. Various analytical approaches are employed, including classical assumption testing, multiple linear regression, individual and collective significance evaluations, and determination coefficient analysis. This research employs various analytical techniques to examine how multiple economic variables (including inflation rates, the Bank Indonesia interest rate, money supply levels, currency exchange rates, and Bank Indonesia Sharia Certificates) potentially influence or correlate with the performance of the Jakarta Islamic Index.Findings:The study's results indicate that among the economic factors analyzed, such as Inflation, BI Rate, Money Supply, and Bank Indonesia Sharia Certificates, most did not show significant individual effects on the Jakarta Islamic Index. The exchange rate, however, emerged as the only factor with a notable individual impact. Collectively, when all these economic variables were considered together, they were found to have a combined influence on the Jakarta Islamic Index.Originality/Values: This study's findings offer valuable information for both investors and policymakers, shedding light on the intricate workings of the Islamic capital market and pinpointing crucial economic factors that shape its performance.ABSTRACTPurpose: Despite variations in economic indicators such as inflation, central bank interest rates, monetary supply, currency valuations, and Islamic financial products, the Jakarta Islamic Index maintains steady stock trading performance. The study examines how various economic factors influenced the Jakarta Islamic Index (JII) between 2010 and 2023. In particular, it explores how the index's behavior is shaped by inflationary pressures, Bank Indonesia's benchmark rate, money circulation, foreign currency exchange rates, and Islamic-compliant certificates issued by Bank Indonesia.Design/Method/Approach: The study utilizes quantitative methods, analyzing data collected over time from credible institutions such as Bank Indonesia, the Financial Services Authority, the Central Statistics Agency, and other reputable sources. Various analytical approaches are employed, including classical assumption testing, multiple linear regression, individual and collective significance evaluations, and determination coefficient analysis. This research employs various analytical techniques to examine how multiple economic variables (including inflation rates, the Bank Indonesia interest rate, money supply levels, currency exchange rates, and Bank Indonesia Sharia Certificates) potentially influence or correlate with the performance of the Jakarta Islamic Index.Findings:The study's results indicate that among the economic factors analyzed, such as Inflation, BI Rate, Money Supply, and Bank Indonesia Sharia Certificates, most did not show significant individual effects on the Jakarta Islamic Index. The exchange rate, however, emerged as the only factor with a notable individual impact. Collectively, when all these economic variables were considered together, they were found to have a combined influence on the Jakarta Islamic Index.Originality/Values: This study's findings offer valuable information for both investors and policymakers, shedding light on the intricate workings of the Islamic capital market and pinpointing crucial economic factors that shape its performance.

Sharia Banking Stocks: The Role of Profitability and Financial Performance

The increasing awareness among Muslims to adhere to Sharia principles in their daily lives has contributed to a rise in investment in Sharia-compliant stocks, particularly within the Sharia banking sector. This sector, which aligns with Islamic principles, offers potential investment opportunities that can be evaluated by analyzing key financial metrics such as profitability and financial performance, derived from company financial reports. This research aims to examine the impact of four financial indicators—Return on Assets (ROA), Return on Equity (ROE), Earnings Per Share (EPS), and Price Earnings Ratio (PER)—on the stock prices of Sharia banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Using a quantitative research approach, the study employs the SPSS version 29 data processing application, utilizing 60 data points from three Sharia banking companies: PNBS, BRIS, and BTPS. The results of the data analysis reveal that Return on Assets (ROA) has a significant positive effect on stock prices, indicating that higher asset returns are associated with higher stock values. Similarly, Earnings Per Share (EPS) also shows a significant positive impact on stock prices, suggesting that increased earnings per share contribute to the appreciation of stock values. On the other hand, Return on Equity (ROE) and Price Earnings Ratio (PER) were found to have no significant effect on stock prices in the context of this study. These findings provide insights into the financial indicators that influence stock prices in the Sharia banking sector, offering valuable information for investors and financial analysts.

The Impact of the Relationship between Company Characteristics and the Audit Committee on the Quality of Financial Reports (A Field Study on a Sample of Iraqi Private Companies)

The current study primarily aimed to determine the impact of the relationship between company characteristics and the audit committee on the quality of financial reports in its various dimensions (formal, temporal, and informational content). The study also sought to identify the influence of company characteristics on the quality of financial reports across these dimensions. The audit Committee role in improving financial report quality was the first area that the survey examined; this includes looking not just where audits. The study employed a descriptive and then analytical approach to achieve the goal of answering its research question. The study population included all senior management personnel at Iraqi private businesses, responsible auditors and members of audit commissions. From a variety of industries five companies were chosen, yielding a sample of 500 possible contacts (average 100 staff / company). A random sample of 219 participants was selected using the formula that Richard Geiger came up with. Questionnaires were sent to the participants, and all the responses accepted. After analyzing the data and testing the hypotheses using SPSS software, several key findings were revealed, the most significant being: • Company characteristics significantly affect the quality of financial reports. These characteristics provide an accurate and objective depiction of the company's financial position, aiding investors in making informed investment decisions. • Iraqi companies' unique characteristics notably affect the formal dimension of financial report information, as the company's reputation and business relationships are reflected in the reports' format, influencing investors' valuation of shares. • The timeliness of financial report information is vital in attracting investors. It reflects the company's growth and continuity in the market, significantly affecting its valuation. • Company characteristics influence the content of financial reports, including financial data and accompanying disclosures, thereby providing precise information for investors. • Audit committees play a pivotal role in ensuring the integrity and transparency of financial information, enhancing trust, and reducing errors in financial reports. They also contribute to improving the organizational structure of financial information, facilitating data comparability across different periods and entities. • The results indicate that audit committees improve the accuracy of the temporal information presented, boosting the reliability of information provided to the public. Additionally, audit committees assure investors that financial data are free from material errors, positively affecting investment decisions. • The research has shown that the relationship between company characteristics and audit committees enhances the verifiability of financial reports and also builds investor confidence. However, this research finds that if committee independence and effectiveness are not sufficiently so a very close relationship between enterprises (or groups of companies) and audit committees may have undesirable effects on quickness in presenting accountings. • The findings underscore that the unique characteristics of a company directly influence the content of its financial reports, highlighting the importance of having influential audit committees to ensure the credibility of the presented information.

Market Dynamics of Short Covering: The Price Rebound Phenomenon and Double Peak Model in China’s Futures

The present study examines the behavior of futures markets in the wake of widespread short selling and subsequent short covering, which frequently lead to notable price increases. Known as the "Double Peak Model," this study provides a thorough analysis by synthesizing empirical data and recent literature. Data on futures contracts for different financial indices and commodities during periods of notable short interest and subsequent short covering are gathered for the study. Using statistical and econometric methods, the research examines trends in price movements and volatility. Key findings show that while short covering can result in sudden and sharp price increases, short selling can improve market efficiency and transparency by improving information flow. The study also emphasizes how crucial institutional involvement, legal frameworks, and market dynamics are in determining these price fluctuations. The Double Peak Model provides a deeper understanding of the mechanisms underlying market behaviors related to short selling and covering, which is useful information for traders, investors, and policymakers. These understandings are essential for creating sensible regulatory policies, enhancing risk management, and creating successful trading strategies.

Application of Fintech Financial Technology in the Stock Market in Vietnam

Along with the strong development of science and technology, the application of modern technology in many activities in the financial market, including the stock market, has contributed to promoting and creating new steps. a major turning point in the development and integration of these markets. The application of modern technology has created technological leaps in the financial sector around the world, bringing incredible changes in the fields of securities, banking, and investment. Currently, Fintech is playing an important role in changing the way investors participate in the stock market.The profound impact of the 4.0 Industrial Revolution is and has been taking place strongly on most industries around the world in general and Vietnam in particular, so the stock market is no exception to that trend. Developing the stock market towards integrating modern information technology applications is an inevitable trend. Recognizing the importance of information technology application in the field of securities and stock market, the State Securities Commission has gradually modernized the technology platform to improve management and supervision capacity, operating and serving the development of the market.Regarding the development of securities products and services, since 2017, a number of securities companies have researched and deployed financial technology applications to increase customers' investment experience. Up to now, Fintech has helped new investors easily access stock investment channels with many convenient trading features, low costs, saving time and effort. However, Fintech applications in stock trading in our country are not really diverse, still at a simple level such as supporting buying and selling transactions, providing transaction information for investors. The article provides comments and assessments on the current status of Fintech applications in stock trading in Vietnam and some proposals to widely deploy these applications in the stock market in the near future.

An exploration of sustainable innovation investment in emerging markets: An archival study

This study aims to examine the relationship between asymmetric cost behavior and innovation of listed firms in emerging markets, i.e., listed firms in the Indonesian capital market. The Sustainable Development Goals (SDGs) topic has become a hot issue worldwide. Innovation, as a part of SDGs, is a prerequisite to reducing the carbon emissions in a country, including the listed firms on the Indonesian capital market. This study employs quantitative method. To investigate Indonesian-listed firms investment in innovation, we use innovation scores from Thomson Reuters to investigate the investment in innovation by the Indonesian-listed firms. This study utilizes multiple regression tests to examine the empirical model. Our study uses an asymmetric cost behavior model to examine the investment from the firms. We apply data panel to examine the model, i.e., the listed firms of Indonesian capital market during 2010-2019. The result is that innovation influences asymmetric cost behavior. This study also performs a robustness check regarding the empirical model. The result shows that the model is robust. We contribute to the literature on sustainability accounting and the literature on the capital markets. The implication of this study is to give investors information related to the development of sustainability in developing markets. The developing market is a promising investment for investors worldwide. This study also gives feedback to regulators related to the development of innovation in developing markets, particularly Indonesian capital market.

The influence of international financial reporting standards on the development of national accounting and reporting systems of Ukraine

In the context of globalization and increasing integration of national economies into global markets, the issue of harmonization of accounting standards is becoming particularly relevant.The implementation of IFRS not only improves the quality of financial reporting and transparency of information for international investors, but also contributes to the development of the national business environment and enhances confidence in Ukrainian companies on the global stage. The purpose of the study is to comprehensively analyze the impact of IFRS on national accounting and reporting systems in Ukraine.In particular, the study covers the historical context of the development of accounting systems in Ukraine before the introduction of international standards, analysis of the legislative and regulatory framework governing the application of IFRS, as well as identification of the main advantages, challenges and problems faced by Ukrainian companies in adapting IFRS. The research methods include analysis of historical sources, legislative and regulatory acts governing the implementation of IFRS in Ukraine, as well as study of scientific papers and literature on this topic. The result of the study is a set of recommendations for improving the adaptation of IFRS, which include the development of comprehensive training programs for enterprises, the creation of an information platform to support the implementation of standards, as well as enhancing cooperation between government bodies and businesses to monitor the effectiveness of the implementation. The practical significance of the study lies in the development of proposals for improving the process of implementing international standards, which will increase the level of transparency and trust in Ukrainian companies from international investors and contribute to the improvement of the investment climate in the country. Prospects for further research are to identify ways to improve the process of implementing IFRS in Ukraine, mainly for small and medium-sized enterprises. It is also necessary to develop government support strategies to simplify this process and increase the effectiveness of the application of international standards in national accounting and reporting systems. Furthermore, further research could be linked to an analysis of the impact of IFRS on other aspects of financial regulation in Ukraine and the prospects for their integration with European standards.

Comparative assessment of ESG ratings methodology and results based on XBRL

This study provides a comparative analysis of Environmental, Social, and Governance (ESG) ratings methodologies and explores the potential of eXtensible Business Reporting Language (XBRL) to enhance transparency and comparability in ESG reporting. Evaluating ratings from different agencies, the research identifies significant methodological inconsistencies that lead to conflicting information for investors and stakeholders. Statistical tests and adjusted rating scales confirm substantial divergence in ESG scores, primarily due to differing data categories and indicators used by rating firms. Using a sample of 265 European companies, the study demonstrates that individual ESG agencies report markedly different ratings for the same firms, which can mislead stakeholders. It proposes that XBRL based reporting can mitigate these inconsistencies by providing a standardized framework for data collection and reporting. XBRL enables accurate and efficient data collection, reducing human error and enhancing the transparency of ESG reports. The findings advocate for integrating XBRL in ESG reporting to achieve higher levels of comparability and reliability. The study calls for greater regulatory oversight and the adoption of standardized taxonomies in ESG reporting to ensure consistent and comparable data across sectors and jurisdictions. Despite challenges like the lack of a standardized taxonomy and inconsistent adoption, the research contends that XBRL can significantly improve the reliability of ESG ratings. In conclusion, this study suggests that standardizing ESG data through XBRL could provide a viable solution to the unreliability of current ESG rating scales, supporting sustainable business practices and informed decision making by investors.

Limitations of the investor information confirmation form in capturing investor risk propensity

The financial consumer protection laws in South Korea emphasize the principle of suitability to ensure the well-being of the financial consumer. To adhere to these regulations, financial institutions utilize the behavioral risk assessment (BRA) form to assess investors’ characteristics. This study evaluates the effectiveness of these forms in capturing investor risk propensities, using Economic Risk Attitude (ERA), Instrumental Risk-Taking (IRT), and Stimulating Risk-Taking (SRT) as comparative benchmarks. Unlike previous research focused mainly on financial risk attitudes, this study introduces a multidimensional approach that includes psychological factors like SRT, offering a more comprehensive understanding of investor behavior. Findings reveal that while BRA assessments correlate with ERA and IRT, they fail to capture the excitement-driven aspects of risk propensity represented by SRT, indicating that BRA forms may inadequately reflect investors' risk profiles. This underscores the need for refining BRA forms by integrating psychological risk factors, advocating for a multidimensional framework that enhances consumer protection and enables more tailored investment strategies. The study contributes actionable insights for financial consumer protection and sets the stage for integrating advanced technologies, such as AI, to further refine risk assessments.

Risk spillovers and optimal hedging in commodity ETFs: A TVP-VAR Approach

Despite the growing popularity of commodity exchange traded funds (ETFs), research on their risk transmission dynamics is lacking. The study employs a Time-Varying Parameter Vector Autoregressive (TVP-VAR) model to analyze volatility transmission among commodity ETFs during significant events like the COVID-19 pandemic and geopolitical conflicts. It aims to minimize interconnectedness among ETFs to reduce associated risk using the Mean Co-skewness optimal portfolio (MCoP) technique. The findings emphasize the importance of adaptability in portfolio management and provide actionable information for investors seeking to optimize allocation and manage risk exposure effectively in dynamic market environments.

An Exploratory Study on the Effect of Macroeconomic Indicators on the Stock Market Performance among 6-ASEAN Countries

The stock market's performance has been impacted by the global economy's recovery from the COVID-19 pandemic. This study investigates the impact of various factors on stock market performance, with a focus on the global economic recovery from the COVID-19 pandemic. The stock market has experienced positive growth, driven by low interest rates, ample liquidity, and sustained investor optimism, despite concerns over rising inflation and interest rates. This research aims to analyze stock market performance across six ASEAN countries, using a range of data sources, including historical stock prices, financial reports, and macroeconomic indicators. The findings reveal that the real exchange rate exerts the most significant influence on stock market performance. The insights from this study provide valuable information for investors, policymakers, and government bodies, aiding in strategic decision-making and investment planning in these markets.

Evaluating the Effectiveness of Macroeconomic Determinants on the Performance of the Dhaka Stock Exchange: A Time Series Approach

The present study examines the causal relationships between selected macroeconomic factors and the Dhaka Stock Exchange Broad Index (DSEX) performance from January 2014 to December 2023. Time series econometric techniques include Dickey-Fuller (ADF) and Phillips-Perron (PP) tests to verify stationarity, Granger causality to investigate short-term dynamics, and Johansen's co-integration test to evaluate long-term relationships. The results show that while there is no long-term cointegration, there are significant short-term relationships between macroeconomic variables and the DSEX broad index. GDP growth and unemployment significantly impact stock performance, with two-way causality. While interest rates and the money supply have little impact on the index, inflation forecasts trends in inflation even if it doesn't directly influence it. Overall, the DSEX broad index shows how important it is to Bangladesh's macroeconomic dynamics by accurately predicting changes in GDP growth, unemployment, and inflation. The researcher provides unique insights into the mechanics of the Bangladeshi stock market, filling a vacuum in the literature on emerging countries. It analyzes how macroeconomic conditions affect the DSEX index over time, including the COVID-19 pandemic. The study investigates the influence of several macroeconomic variables on DSEX Index performance, providing significant information for Bangladeshi investors and policymakers looking to increase profits, inform policy choices, and promote economic stability. To have a better knowledge of stock market dynamics, future studies should include other macroeconomic aspects and regional markets.

Asymmetric impact of the COVID-19 on the Moroccan stock exchange

PurposeThis study aims to investigate the asymmetric impact of the COVID-19 pandemic on the stock market returns of companies listed on the Casablanca Stock Exchange.Design/methodology/approachTo achieve this objective, we utilized the SymCovid series, which comprises two sub-series: one representing the deterioration of the pandemic situation (NEG) and the other representing the improvement of the pandemic situation (POS). We employed the Nonlinear Autoregressive Distributed Lag model, incorporating Bounds Testing as proposed by Pesaran and Shin (1999) and Pesaran et al. (2001), to explore the asymmetry of the pandemic’s impact on stock prices listed on the Casablanca stock exchange.FindingsOur analysis using the NARDL econometric model reveals an asymmetric effect of COVID-19 on stock prices. Notably, we observe that stock prices react more strongly to a worsening pandemic situation than to an improvement, on average. Furthermore, our main findings indicate that while the improvement in the pandemic situation has no significant long-term impact on stock prices, it does exhibit a significant positive effect in the short term. Conversely, the deterioration in the pandemic situation has a more pronounced negative effect on stock prices in the long term than the short term.Originality/valueOur study fills a gap in the existing literature by focusing on the impact of the COVID-19 pandemic on stock returns in the context of the Casablanca Stock Exchange, which has been relatively understudied compared to other regions such as Asia, Europe and the Americas. We go beyond previous research by examining whether stock returns exhibit asymmetric responses to changes in the pandemic situation, highlighting potentially unique dynamics in emerging market economies during crises and providing valuable information for investors, policymakers and researchers.

A Collection of Wisdom in Predicting Sector Returns: The Use of Google Search Volume Index

This study investigates whether the aggregate investor information demand for all stocks in a sector demonstrated in the Google search volume index (SVI) can predict the sector’s performance. The evidence shows that a sector’s abnormal SVI can predict the sector’s performance next month, even after controlling for the sector’s contemporaneous standardized unexpected earnings and lagged returns on both the market and the sector. Also found is a partial reversal in the sector’s long-run performance that is not completely consistent with the price pressure hypothesis. This indicates that some fundamental information about a sector can be captured by the sector’s abnormal SVI on a timely basis.

Volatility spillover between carbon market and related markets in time-frequency domain based on BEKK-GARCH and complex network analysis

With rising public attention to climate issues and sustainable development, the connection between carbon market and its related markets has become closer. Based on BEKK-GARCH method and complex network theory, this study tries to explore the volatility spillover effects and network topology among China's carbon market, non-renewable energy market, renewable energy market, high-tech market and climate policy uncertainty index in time-frequency domain. It is found that, firstly, there are significant asymmetric volatility spillover effects among the markets. Secondly, the spillover effects between markets are time-varying, especially during crisis periods in which they are significantly higher than that during the stable period. Thirdly, with time increasing, the closer the connection between markets. In the long run, the closeness of the connection is directly proportional to the spillover effect. Finally, climate policy uncertainty is the main risk source. For full sample, from perspective of frequency domain, non-renewable energy and carbon markets are the main risk recipients. Based on the findings, it should step up efforts on market monitoring and intervention during crisis periods, strengthen cross-market risk management, pay attention to climate uncertainty and time-frequency varying characteristics of volatility spillovers, so as to provide useful information for policy makers and investors.

Analysis of the Effect of Corporate Social Responsibility on Company Management Performance

General Background: Corporate Social Responsibility (CSR) significantly influences company performance in today’s business environment. Specific Background: Inconsistent findings exist regarding CSR's impact on management performance, particularly in Indonesia’s state-owned enterprises (BUMN). Knowledge Gap: This study addresses this gap by examining the effects of environmentally and socially oriented CSR on the management performance of BUMN companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022. Aims: The study aims to empirically assess how CSR influences management performance using quantitative data from annual reports. Results: The findings reveal that both environmentally and socially oriented CSR positively impact management performance, with implications for financial outcomes. Novelty: This research offers new insights into the relationship between CSR initiatives and firm performance. Implications: The results provide valuable information for investors and corporate managers, highlighting the necessity of effective CSR strategies to enhance operational performance and build investor confidence. Highlights: Positive Impact: Both environmentally and socially oriented CSR significantly enhance management performance in BUMN companies. Investment Insights: Effective CSR strategies are essential for building investor confidence and improving financial outcomes. Research Contribution: This study fills the knowledge gap by empirically linking CSR initiatives to firm performance in Indonesia. Keywords: Corporate Social Responsibility, Management Performance, State-Owned Enterprises, Indonesia Stock Exchange, Financial Outcomes

The Effect Of Gender Diversity And Free Cash Flow On Dividend Policy With Firm Size As A Moderating Variable

The purpose of this study was to determine the effect of gender diversity and free cash flow on dividend policy with firm size as a moderating variable. The population in this study are mining companies listed on the Indonesia Stock Exchange in 2020-2023. This study used purposive sampling technique, so 138 data were obtained from 87 mining companies listed on the Indonesia Stock Exchange. The results showed that gender diversity has no effect on dividend policy, free cash flow has a significant positive effect on dividend policy. Firm size cannot moderate the effect of gender diversity and free cash flow on dividend policy. The implications of the results of this study are expected to provide information for consideration by stakeholders such as the board of directors and as information for investors in making investment decisions.

Do Investors’ Site Visits Improve Bond Market Pricing Efficiency? —An Empirical Study from the Secondary Bond Market

ABSTRACT Taking bonds issued by A-share companies listed on the Shenzhen Stock Exchange from 2014 to 2020 as a sample, this paper explores the effect of corporate site visits on bond trading spreads. The study finds that the more investors visit a given firm, the lower the trading spreads of bonds issued by that firm, and this phenomenon is more pronounced in companies with greater information asymmetry or agency conflicts. Further research shows that investors evaluate the financial status of the company more accurately through site visits and reduce irrational decisions caused by information uncertainty. Consequently, site visits reduce the financing gap caused by macroeconomic factors. The results show that personal communication between investors and listed companies could provide effective information for bond investors and reduce their information risk. This paper expands the existing research on issues related to secondary bond market pricing and investors’ site visits and provides important empirical evidence for regulators to use to further optimize the bond market disclosure system to reduce information asymmetry.