The editors
We are pleased to announce that the annual best paper award for 2017 goes to State Ownership and the Market Pricing of Accruals Quality, by Shinong Wu (Xiamen University), Yaping Wang (Peking University), Liansheng Wu (Peking University) and Xianhui Bo (Central University of Finance and Economics). The paper was published in China Journal of Accounting Studies, Vol. 5, No. 2, 2017, pp. 216-233. In this paper, the authors examine the effect of state ownership on the market pricing of accruals quality, and find that the market pricing effect of accruals quality is larger for non-state-owned enterprises than for state-owned enterprises in China. The results still hold when accruals quality is divided into innate and discretionary accruals quality. Further analyses reveal a higher level of expropriation and a greater fundamental risk in non-state-owned enterprises, leading to a larger market pricing effect of accruals quality. This paper is the first to study the governance role of state ownership from the perspective of market pricing of accruals quality. It also adds to the literature on the market pricing of accruals quality by studying its link with state ownership.
The paper was selected by the journal’s editorial team against the following criteria-originality, rigor, relevance and quality of exposition.
Our heartiest congratulations to Dr Shinong Wu, Yaping Wang, Liansheng Wu and Xianhui Bo for the award.