Dr Guanming He's Outputs (26)

Does commercial reform embracing digital technologies mitigate stock price crash risk? (2025)
Journal Article
He, G., Li, Z., Yu, L., & Zhou, Z. (2025). Does commercial reform embracing digital technologies mitigate stock price crash risk?. Journal of Corporate Finance, 91, Article 102741. https://doi.org/10.1016/j.jcorpfin.2025.102741

Over the recent decade or so, the Chinese government implemented a commercial reform that features governmental application of digital technologies to acquire and process firm information. The core objective of commercial reform is to improve informa... Read More about Does commercial reform embracing digital technologies mitigate stock price crash risk?.

The impact of superstition on corporate tax avoidance: How do CEOs trade off risks associated with tax avoidance? (2024)
Journal Article
He, G., & Shen, D. (online). The impact of superstition on corporate tax avoidance: How do CEOs trade off risks associated with tax avoidance?. Journal of Accounting Literature, https://doi.org/10.1108/JAL-02-2024-0020

Purpose
We examine how superstition shapes corporate tax avoidance and do so by taking a risk perspective and focusing on the zodiac-year belief prevalent in China.

Design/methodology/approach
We adopt a difference-in-differences research desig... Read More about The impact of superstition on corporate tax avoidance: How do CEOs trade off risks associated with tax avoidance?.

The Roles of Financial Analysts in the Stock Market (2024)
Book Chapter
He, G., & Li, A. Z. (2024). The Roles of Financial Analysts in the Stock Market. In C. Few Lee, A. C. Lee, & J. C. Lee (Eds.), Handbook of Investment Analysis, Portfolio Management, and Financial Derivatives (2293-2308). World Scientific Publishing. https://doi.org/10.1142/9789811269943_0073

Investors lacking ample time, professional knowledge, and sufficient ability may find it difficult to understand the implication of complex corporate information and figure out the clear trend of future corporate performance. Financial analysts who p... Read More about The Roles of Financial Analysts in the Stock Market.

Does media coverage of firms' environment, social, and governance (ESG) incidents affect analyst coverage and forecasts? A risk perspective (2024)
Journal Article
He, G., & Li, A. Z. (2024). Does media coverage of firms' environment, social, and governance (ESG) incidents affect analyst coverage and forecasts? A risk perspective. International Review of Financial Analysis, 94, Article 103289. https://doi.org/10.1016/j.irfa.2024.103289

We examine whether and how media coverage of firms’ environment, social, and governance (ESG) incidents is associated with analyst coverage and forecasts. We propound that the risks of firms could either increase or decrease as a result of media-cove... Read More about Does media coverage of firms' environment, social, and governance (ESG) incidents affect analyst coverage and forecasts? A risk perspective.

How to make long-term investments in a stock market? A generic strategy for investors (2024)
Journal Article
He, G., Li, Z., & Shen, D. (2024). How to make long-term investments in a stock market? A generic strategy for investors. Review of Pacific Basin Financial Markets and Policies, 27(1), Article 2450002. https://doi.org/10.1142/S0219091524500024

Against the backdrop of increasingly fierce industrial competition nowadays, firms tend to have substantive business risk and/or information risk, increasing the estimation risk and limit of arbitrage for investors in their short-term investments in... Read More about How to make long-term investments in a stock market? A generic strategy for investors.

Derivative disclosures and managerial opportunism (2023)
Journal Article
He, G., & Ren, H. M. (2023). Derivative disclosures and managerial opportunism. Journal of Futures Markets, 44(3), 384-419. https://doi.org/10.1002/fut.22472

Derivatives are increasingly used by managers not only to hedge risks but also to pursue nonhedging activities for fulfilling opportunistic incentives. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose thei... Read More about Derivative disclosures and managerial opportunism.

Contribution to poverty alleviation: A waste or benefit for corporate financing? (2023)
Journal Article
He, G., Li, Z., Yu, L., & Zhou, Z. (2023). Contribution to poverty alleviation: A waste or benefit for corporate financing?. Journal of International Financial Markets, Institutions and Money, 89, Article 101875. https://doi.org/10.1016/j.intfin.2023.101875

We investigate whether Chinese firms’ involvements in poverty alleviation affect their costs of financing. We find causal evidence that firms’ contributions to poverty alleviation result in lower cost of equity and lower cost of debt, suggesting that... Read More about Contribution to poverty alleviation: A waste or benefit for corporate financing?.

Does analysts’ industrial concentration affect the quality of their forecasts? (2023)
Journal Article
He, G., Sun, Y., & Li, A. Z. (2024). Does analysts’ industrial concentration affect the quality of their forecasts?. Financial Markets and Portfolio Management, 38(1), 37-91. https://doi.org/10.1007/s11408-023-00435-0

We examine the association between financial analysts’ industrial concentration and the quality of their earnings forecasts. We find that analysts’ forecast quality, measured by forecast accuracy, forecast informativeness, and forecast timeliness, is... Read More about Does analysts’ industrial concentration affect the quality of their forecasts?.

The economic consequences of corporate social irresponsibility and policy implications (2023)
Book Chapter
He, G., Li, Z., & Slack, R. (2023). The economic consequences of corporate social irresponsibility and policy implications. In F. Moshirian, & C. Park (Eds.), Climate Change and Climate Finance: Current Experience and Future Directions (60-86). Asian Development Bank. https://doi.org/10.22617/TCS230333-2

Although extensive research has explored topics related to corporate social responsibility (CSR)—particularly within the context of the Sustainable Development Goals—including its impact on firms’ performance, the evidence is mixed and inconclusive.... Read More about The economic consequences of corporate social irresponsibility and policy implications.

Does CEO debt-like compensation mitigate corporate social irresponsibility? (2023)
Journal Article
Chen, L., He, G., & Krishnan, G. (2024). Does CEO debt-like compensation mitigate corporate social irresponsibility?. Accounting Forum, 48(4), 594-634. https://doi.org/10.1080/01559982.2023.2195983

Corporate social irresponsibility (CSI) is an increasingly relevant topic to today’s business, as CSI may exert stronger impacts on firms than corporate social responsibility (CSR). However, little is known about mechanisms that can constrain such ir... Read More about Does CEO debt-like compensation mitigate corporate social irresponsibility?.

How do insider trading incentives shape nonfinancial disclosures? Evidence from product and business expansion disclosures (2022)
Journal Article
He, G. (2023). How do insider trading incentives shape nonfinancial disclosures? Evidence from product and business expansion disclosures. Review of Quantitative Finance and Accounting, 60(1), 147-194. https://doi.org/10.1007/s11156-022-01093-5

Nonfinancial disclosures of product and business expansion planning occur frequently in practice and are an important vehicle by which managers convey corporate information to outsiders. However, little is known about how the opportunistic incentives... Read More about How do insider trading incentives shape nonfinancial disclosures? Evidence from product and business expansion disclosures.

Are financially constrained firms susceptible to a stock price crash? (2022)
Journal Article
He, G., & Ren, H. (2023). Are financially constrained firms susceptible to a stock price crash?. European Journal of Finance, 29(6), 612-637. https://doi.org/10.1080/1351847x.2022.2075280

This study investigates whether and how financial constraints on firms affect the risk of their stock price crashing. We find strong evidence that financial constraints increase future stock price crash risk. This finding is robust to using two quasi... Read More about Are financially constrained firms susceptible to a stock price crash?.

Does air pollution impair investment efficiency? (2022)
Journal Article
He, G., & Lin, T. (2022). Does air pollution impair investment efficiency?. Economics Letters, 215, Article 110490. https://doi.org/10.1016/j.econlet.2022.110490

Using a sample of 2,174 Chinese listed firms for the period 2014-2019, we examine whether air pollution impairs investment efficiency of firms. We find robust evidence that air pollution is negatively associated with firms’ investment efficiency, and... Read More about Does air pollution impair investment efficiency?.

The impact of the Shanghai – Hong Kong stock market connection on corporate innovation: Evidence from mainland China (2021)
Journal Article
He, G., Li, X., & Luo, J. (2023). The impact of the Shanghai – Hong Kong stock market connection on corporate innovation: Evidence from mainland China. International Journal of Finance and Economics, 28(3), 3132-3161. https://doi.org/10.1002/ijfe.2587

The Shanghai stock market and the Hong Kong stock market were connected by the Chinese government in 2014, allowing Hong Kong investors to trade on a group of stocks on the Shanghai stock market. Using a difference-in-differences approach, we examine... Read More about The impact of the Shanghai – Hong Kong stock market connection on corporate innovation: Evidence from mainland China.

Do enhanced derivative disclosures work? An informational perspective (2021)
Journal Article
He, G., Ren, H., & Taffler, R. (2022). Do enhanced derivative disclosures work? An informational perspective. Journal of Futures Markets, 42(1), 24-60. https://doi.org/10.1002/fut.22275

Firms use derivatives both for hedging and nonhedging purposes. The Statement of Financial Accounting Standards No. 161 (SFAS 161) requires firms to disclose the purposes of their derivatives usage, thereby helping investors to evaluate the effects o... Read More about Do enhanced derivative disclosures work? An informational perspective.

The role of earnings management in equity valuation (2021)
Book Chapter
He, G., Li, Z., & Shen, D. (2022). The role of earnings management in equity valuation. In C. Lee, & A. Lee (Eds.), Encyclopedia of Finance (2061-2094). (3rd edition). Springer Nature. https://doi.org/10.1007/978-3-030-73443-5_90-1

The intrinsic value of a firm’s equity is determined by the present value of future payoffs to equity-holders. Thus, to estimate equity value, one needs to identify and process a series of information that is relevant to the present value of expected... Read More about The role of earnings management in equity valuation.

How do executive pay and its gap with employee pay influence corporate performance? Evidence from Thailand tourism listed companies (2021)
Journal Article
Ferry, L., He, G., & Yang, C. (2023). How do executive pay and its gap with employee pay influence corporate performance? Evidence from Thailand tourism listed companies. Journal of Hospitality and Tourism Insights, 6(1), 362-381. https://doi.org/10.1108/jhti-03-2021-0061

Purpose- We investigate how executive pay and its gap with employee pay influence the performance of Thailand tourism listed companies. Design/methodology/approach- We manually collect data on the executives’ and employees’ remunerations for Thailand... Read More about How do executive pay and its gap with employee pay influence corporate performance? Evidence from Thailand tourism listed companies.

Credit rating, post‐earnings‐announcement drift, and arbitrage from transient institutions (2020)
Journal Article
He, G. (2021). Credit rating, post‐earnings‐announcement drift, and arbitrage from transient institutions. Journal of Business Finance and Accounting, 48(7-8), 1434-1467. https://doi.org/10.1111/jbfa.12520

This study first establishes a robust link between credit rating and post‐earnings‐announcement drift (PEAD). I find strong evidence that PEAD is more salient for firms with low credit ratings. This finding is consistent with the notion that investor... Read More about Credit rating, post‐earnings‐announcement drift, and arbitrage from transient institutions.

Do corporate insiders trade on future stock price crash risk? (2020)
Journal Article
He, G., Ren, H., & Taffler, R. (2021). Do corporate insiders trade on future stock price crash risk?. Review of Quantitative Finance and Accounting, 56(4), 1561-1591. https://doi.org/10.1007/s11156-020-00936-3

We explore whether firm managers trade on future stock price crash risk. This depends on managers’ ability to assess future crash risk, and on whether the expected payoff is greater than the expected costs associated with potential reputation loss an... Read More about Do corporate insiders trade on future stock price crash risk?.

The impact of insider trading on analyst coverage and forecasts (2020)
Journal Article
He, G., & Marginson, D. (2020). The impact of insider trading on analyst coverage and forecasts. Accounting Research Journal, 33(3), 499-521. https://doi.org/10.1108/arj-08-2019-0148

Purpose: The purpose of this study is to examine the effect of insider trading on analyst coverage and the properties of analyst earnings forecasts. Given the central role of analysts for information diffusion in stock markets, advancing understandin... Read More about The impact of insider trading on analyst coverage and forecasts.