Accounting Research Editors-In-Chief Jeong Bon Kim, City University of Hong Kong
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13 3 Volume 13 • Issue 3 • September 2020 China Journal of Accounting Research Editors-in-Chief Jeong Bon Kim, City University of Hong Kong Volume 13, 3 (2020) China Journal of Accounting Research Vol. 13/3 (2020) 237–326 Minghai Wei, Sun Yat-sen University Consulting Editors Fifty years of capital markets research in accounting: Business and financial information integration and Bin Ke, National University of Singapore Achievements so far and opportunities ahead voluntary management earnings forecasts Roni Michaely, Cornell University Ilia D. Dichev 237 Jing Huang, Zipeng Mei, Zhe Li 291 Associate Editors Gennaro Bernile, University of Miami Economic sharing of honors: Equal or Exclusive? Job satisfaction and firm leverage: Evidence from the Donghua Chen, Nanjing University China Journal of Bofu Deng, Jiawei Liu, Li Ji 251 ‘‘ChinaÕs Best Employer Award 100’’ winners Thomas Jeanjean, Essec Business School Hongmei Xu, Xiaoran Ni, Chuntao Li, Yanan Liu 309 Edward Lee, The University of Manchester The potential harms of goodwill impairment avoidance: Oliver Zhen Li, National University of Singapore Evidence based on future performance and stock prices Feng Liu, Xiamen University Hongwen Han, Qingquan Tang 271 Xijia Su, China Europe International Business School Accounting Naohiro Urasaki, Kindai University Donghui Wu, The Chinese University of Hong Kong Zhifeng Yang, Stony Brook University Research Editorial Board Sudipta Basu, Temple University Jeffrey Callen, University of Toronto Shijun Cheng, University of Maryland Charles Hsu, The Hong Kong University of Science and Technology Guohua Jiang, Peking University Indra Wijaya Kusuma, Universitas Gadjah Mada Clive S. Lennox, University of Southern California Zengquan Li, Shanghai University of Finance and Economics Bingxuan Lin, The University of Rhode Island Gerald Lobo, University of Houston Changjiang Lv, Fudan University Xiumin Martin, Washington University Suresh Radhakrishnan, University of Texas at Dallas Dan A. Simunic, The University of British Columbia Herve´ Stolowy, HEC Paris Joanna Shuang Wu, University of Rochester Albert Tsang, Hong Kong Polytechnic University Stella Wu, University of Western Sydney Xi Wu, Central University of Finance and Economics Zezhong Xiao, University of Macau Junsheng Zhang, Sun Yat-sen University HOSTED BY Available online at www.sciencedirect.com Website: ELSEVIER http://www.elsevier.com/locate/cjar ScienceDirect http://www.cb.cityu.edu.hk/research/cjar/ ISSN 1755-3091 CYAN MAGENTA YELLOW BLACK Aims and Scope All rights reserved. No part of this journal may be reproduced, The focus of the China Journal of Accounting Research is to publish stored in a retrieval system or transmitted in any means, electro- theoretical and empirical research papers that use contemporary nic, mechanical, photocopying, recording or otherwise, without research methodologies to investigate issues about accounting, the prior permission of Editorial Office of China Journal of Account- corporate finance, auditing and corporate governance in the Great- ing Research. er China region, countries related to the Belt and Road Initiative, Notice and other emerging and developed markets. 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Ó China Journal of Accounting Research Founded by Sun Yat-sen University and City University of Hong http://www.elsevier.com/journals/china-journal-of- Kong accounting-research/1755-3091/guide-for-authors Sponsored by: Published quarterly in March, June, September, and December CHINA JOURNAL OF ACCOUNTING RESEARCH Volume 13/3 (2020) Available online at www.sciencedirect.com ScienceDirect HOSTED BY Editors-in-Chief Editorial Board Jeong Bon Kim Sudipta Basu, Temple University City University of Hong Kong Jeffrey Callen, University of Toronto Shijun Cheng, University of Maryland Minghai Wei Charles Hsu, The Hong Kong University of Science Sun Yat-sen University and Technology Guohua Jiang, Peking University Consulting Editors Indra Wijaya Kusuma, Universitas Gadjah Mada Bin Ke Clive S. Lennox, University of Southern California National University of Singapore Zengquan Li, Shanghai University of Finance and Economics Roni Michaely Bingxuan Lin, The University of Rhode Island Cornell University Gerald Lobo, University of Houston Changjiang Lv, Fudan University Associate Editors Xiumin Martin, Washington University Gennaro Bernile Suresh Radhakrishnan, University of Texas at Dallas University of Miami Dan A. Simunic, The University of British Columbia Herve´ Stolowy, HEC Paris Donghua Chen Joanna Shuang Wu, University of Rochester Nanjing University Albert Tsang, Hong Kong Polytechnic University Thomas Jeanjean Stella Wu, University of Western Sydney Essec Business School Xi Wu, Central University of Finance and Economics Zezhong Xiao, University of Macau Edward Lee Junsheng Zhang, Sun Yat-sen University The University of Manchester Oliver Zhen Li National University of Singapore Feng Liu Xiamen University Xijia Su China Europe International Business School Naohiro Urasaki Kindai University Donghui Wu The Chinese University of Hong Kong Zhifeng Yang Stony Brook University China Journal of Accounting Research 13 (2020) 237–249 HOSTED BY Contents lists available at ScienceDirect China Journal of Accounting Research journal homepage: www.elsevier.com/locate/cjar Fifty years of capital markets research in accounting: Achievements so far and opportunities ahead Ilia D. Dichev ⇑ Goizueta Business School, Emory University, USA ARTICLE INFO ABSTRACT Article history: This paper reviews the literature on capital markets research in accounting Received 22 June 2020 over the last 50 years. Rather than trying to be comprehensive, the review Accepted 21 July 2020 focuses on selected areas, and strives to be forward-looking. The first major Available online 12 August 2020 takeaway is that the literature has made great progress, especially on the tech- nical side. The second takeaway is that great opportunities remain, especially in using Big Data, looking more closely into the accrual process, and in issues related to standard setting. Ó 2020 Sun Yat-sen University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecom- mons.org/licenses/by-nc-nd/4.0/). 1. Some caveats I would like to start with some caveats. The first caveat is that this review is not meant to be comprehensive. The existing capital markets literature is simply too large, and so it is nearly impossible to cover everything. To use an analogy from music, what I am going to do here is to present the Selected Hits, rather than the Com- plete Collection. And since it is the Selected Hits, the choice of what to include is largely driven by personal choice and personal expertise. The idea is to provide a breezy and punchy overview rather than an exhaustive analysis of everything that has been done. Second, I will be attempting to ‘‘give an opinion” rather than just ‘‘listing what has been done”. In other words, the review will take more of a position on certain things. Note that my opinion could be biased or wrong but I feel that this is the right occasion to say something more pointed rather than keep to the safety of just listing accomplishments. Third, the review aims to be big- picture and forward-looking. The important thing is not only what we have done so far but where we go from here. Accordingly, I will try to provide some ideas for future research. For those who want a more complete coverage, there are some existing reviews of the capital market liter- ature that are helpful. Kothari (2001) is a comprehensive review of capital markets research; it is widely read and cited but it does not reflect more recent findings. Richardson et al. (2010) is more recent but covers mostly ⇑ Address: Goizueta Business School, 1300 Clifton Rd., Atlanta, GA 30322, USA. E-mail address: [email protected] https://doi.org/10.1016/j.cjar.2020.07.005 1755-3091/Ó 2020 Sun Yat-sen University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). 238 I.D. Dichev / China