scholarly journals Value Investing: Evidence from Listed Companies in Chinese Manufacturing Industry

2021 ◽  
Vol 17 (2) ◽  
pp. 60
Author(s):  
Tao Zhu ◽  
Eksiri Niyomsilp ◽  
John Walsh
Keyword(s):  
Manufacturing Industry ◽  
Security Analysis ◽  
Accounting Information ◽  
Listed Companies ◽  
Statistical Technique ◽  
Financial Reports ◽  
Value Investing ◽  
Chinese Manufacturing Industry ◽  
Investment In China ◽  
Returns On Investment

Value investing methods have been broadly researched and applied to various atmosphere of security analysis. It mainly deals with the identification of value securities for possible buy and hold or resale. For further analysis, statistical technique is utilized to inspect the extent and characters of value investing theory in Chinese manufacturing industry. This paper intends to reveal the interactions among returns on investment (ROI) as well as other accounting information filed within financial reports, and also testing the degree of the interaction on returns on investment in China’s manufacturing industry.

FALSE FINANCIAL STATEMENTS: CHARACTERISTICS OF CHINA'S LISTED COMPANIES AND CART DETECTING APPROACH

2008 ◽  
Vol 07 (02) ◽  
pp. 339-359 ◽  
Author(s):  
BELINNA BAI ◽  
JEROME YEN ◽  
XIAOGUANG YANG
Keyword(s):  
Regression Tree ◽  
Financial Statements ◽  
Listed Companies ◽  
Statistical Technique ◽  
International Perspective ◽  
Classification And Regression Tree ◽  
Superior Performance ◽  
Financial Reports ◽  
Detection Techniques ◽  
Logit Regression

False Financial Statements (FFS) have long been a serious problem in China and other Asian countries, which significantly dampen the confidence of the investors. Regardless of listed companies or non-listed companies, the percentage of financial statements that contained false information is quite high, which is one of the major reasons why China stock markets moved in the opposite direction towards its wonderful economic growth over the past few years. The objective of this research is to introduce one statistical technique — Classification and Regression Tree (CART), to identify and predict the impacts of FFS. We survey financial statements manipulation tricks, FFS indicators and FFS detection techniques from both China and international perspective, and further look into ten listed companies with known FFS history in China; combining these findings, we propose key indicators to work with CART. Our analysis includes 24 false financial reports, and 124 non-false financial reports. We use CART to develop two FFS detecting models: CART without industry benchmark and CART with industry benchmark. For supporting comparison, we also build a Logit regression which is a commonly used technique in FFS detecting. We find that CART is effective in distinguishing FFS from non-FFS. Both CART models achieve better accuracy in identifying fraud cases and making predictions than Logit regression does, and CART with industry benchmark is slightly better than CART without benchmark, but it does not always have superior performance. Our CART model also tries to capture the indicators and their combinations that could reflect firms with high possibility of FFS in China.

scholarly journals Analysis on the Present Situation and Countermeasures of Earnings Management

2020 ◽  
Vol 2 (2) ◽  
pp. 39
Author(s):  
Yiping Wu
Keyword(s):  
Decision Making ◽  
Earnings Management ◽  
Decision Maker ◽  
Accounting Information ◽  
Accounting Standards ◽  
Present Situation ◽  
Listed Companies ◽  
Financial Reports ◽  
The Public ◽  
Expected Earnings

<p>Earnings management of listed companies has become a very common headache for listed companies in China, and it is also a problem of great concern to the public. Within the scope permitted by accounting standards and relevant laws and regulations, a considerable number of people purposefully planned to realize the expected earnings by choosing accounting policies, changing accounting estimates or arranging transactions and events, and they influence the decision-making of accounting information users through financial reports, thus enabling the company to maximize its own earnings. Paying attention to enterprise earnings management has become the consensus of every decision maker. This paper analyzes the present situation and motivation caused by earnings management, and it puts forward several governance measures of earnings management aiming at the present situation, aiming at making listed companies use earnings management reasonably, avoiding overuse or overuse of earnings management, and showing the public a real business situation.</p>

scholarly journals NEXUS BETWEEN INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: AN INVESTIGATION OF CHINESE MANUFACTURING INDUSTRY

2020 ◽  
Vol 0 (0) ◽  
pp. 1-19
Author(s):  
Jian Xu ◽  
Feng Liu
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Manufacturing Industry ◽  
Listed Companies ◽  
Profit Margin ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Profit ◽  
Chinese Manufacturing Industry ◽  
The Impact

How to manage financial performance through the utilization of intellectual capital (IC) is an important issue in the knowledge economy. The objective of this study is to investigate the impact of IC on financial performance for manufacturing listed companies in the Chinese context. Financial performance is measured from two distinct aspects: (1) firm profitability, measured through earnings before interest, taxes, depreciation and amortization (EBITDA), net profit margin (NPM), and gross profit margin (GPM), and (2) corporate return, measured through return on investment (ROI), return on assets (ROA), and return on equity (ROE). The results show a positive relationship between NPM, GPM, ROI, ROA, ROE, and IC (measured through the market-to-book ratio). In addition, the more intangible-intensive manufacturing listed companies exhibit better financial performance. The study provides evidence that higher investment in IC can improve value creation in the emerging economies.

Telaahan Penerapan Sistem Informasi Akuntansi Berbasis Komputer Akuntansi (Menggunakan Microsoft Excel) dalam Penyajian Laporan Keuangan (Studi Kasus pada Rumah Sakit Islam Bogor)

2010 ◽  
Vol 6 (02) ◽  
pp. 49
Author(s):  
Syarief Gerald Prasetya
Keyword(s):  
Information System ◽  
Balance Sheet ◽  
Accounting Information ◽  
Financial Statement ◽  
Microsoft Excel ◽  
Financial Reports ◽  
Accounting Information System ◽  
Achievement Data ◽  
Medical Needs ◽  
Processing Data

Hospital was established to serve the medical needs of the citizen. In addition to serving, hospitals also need to explore the benefits for the sustainability and the development of the hospital. To achieve financial reports have involved a large role. Accounting information system computer-based accounting will help serving the financial reports, so that more accurate and faster. Errors can be diminished.  Research object is selected by the author to conduct research is Bogor Rumah Sakit Islam. A hospital that is located on Jl. Perdana Raya. 22 Budi Agung, Jakarta Utara. This hospital was established on May 12, 1991. The location is strategic as it is in the center of Bogor. In doing activity, accounting information system based on computerized accounting still not yet common use. Computer already exist but support application to create an accurate and fast financial statement does not exist. So much weaknesses if we still using manual method. Like slowly processing data, still using much worker and much step while processing. The information result is still contained high mistake. To solve all problems above we need accounting software as tool for accounting division. For that I try to apply computerized accounting using Microsoft Excel for helping creating financial statement. By doing observation and interview with related employee, this research can do well. Journalize transaction process by using Microsoft Excel is to make a column for each transaction such as Journal Voucher, General Ledger, Balance Sheet. After making a column, the next step is inputing achievement data to Journal Voucher. After inputing data, General Ledger and Balance Sheet can automatically fill up. By using computer, processing data is more faster, information result is more accurately, human resource is less needed. Related management can get information they need more faster, because amount recalculated every doing transaction.

scholarly journals Mechanisms of Environmental Regulation’s Impact on Green Technological Progress—Evidence from China’s Manufacturing Sector

2021 ◽  
Vol 13 (4) ◽  
pp. 1600
Author(s):  
Weijiang Liu ◽  
Mingze Du ◽  
Yuxin Bai
Keyword(s):  
Sustainable Development ◽  
Energy Consumption ◽  
Technological Change ◽  
Environmental Protection ◽  
Technological Progress ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
The Sustainable Development ◽  
Biased Technological Change ◽  
Chinese Manufacturing Industry

As the world’s largest developing country, and as the home to many of the world’s factories, China plays a crucial role in the sustainable development of the world economy regarding environmental protection, energy conservation, and emission reduction issues. Based on the data from 2003–2015, this paper examined the green total factor productivity and the technological progress in the Chinese manufacturing industry. A slack-based measure (SBM) Malmquist productivity index was used to measure the bias of technological change (BTC), input-biased technological change (IBTC), and output-biased technological change (OBTC) by decomposing the technological progress. It also investigated the mechanism of environmental regulation, property right structure, enterprise-scale, energy consumption structure, and other factors on China’s technological progress bias. The empirical results showed the following: (1) there was a bias of technological progress in the Chinese manufacturing industry during the research period; (2) although China’s manufacturing industry’s output tended to become greener, it was still characterized by a preference for overall CO2 output; and (3) the impact of environmental regulations on the Chinese manufacturing industry’s technological progress had a significant threshold effect. The flexible control of environmental regulatory strength will benefit the Chinese manufacturing industry’s technological development. (4) R&D investment, export delivery value, and structure of energy consumption significantly contributed to promoting technological progress. This study provides further insight into the sustainable development of China’s manufacturing sector to promote green-biased technological progress and to achieve the dual goal of environmental protection and healthy economic growth.

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