Spillover Effects of Preventive Regulation and Corporate R&D Investment Catering: Evidence from China

References

• Adhikari, B., and A. Agrawal. 2018. Peer influence on payout policies. Journal of Corporate Finance 48:615–37. doi:10.1016/j.jcorpfin.2017.12.010.
   Web of Science ®Google Scholar
• Baker, M., and J. Wurgler. 2014. Appearing and disappearing dividends: The link to catering incentives. Journal of Financial Economics 73 (2):271–88. doi:10.1016/j.jfineco.2003.08.001.
   Google Scholar
• Becker, G. 1968. Crime and punishment: An economic approach. Journal of Political Economy 76 (2):169–217. doi:10.1086/259394.
   Web of Science ®Google Scholar
• Bordalo, P., N. Gennaioli, and A. Shleifer. 2012. Salience theory of choice under risk. Quarterly Journal of Economics 127 (3):1243–85. doi:10.1093/qje/qjs018.
   Web of Science ®Google Scholar
• Brown, S. V., X. Tian, and W. T. Tucker. 2018. The spillover effect of SEC comment letters on qualitative corporate disclosure: Evidence from the risk factor disclosure. Contemporary Accounting Research 35 (2):622–56. doi:10.1111/1911-3846.12414.
   Web of Science ®Google Scholar
• Chan, K., and D. Wu. 2011. Aggregate Quasi Rents and auditor independence: Evidence from audit firm mergers in China. Contemporary Accounting Research 28 (1):175–213. doi:10.1111/j.1911-3846.2010.01046.x.
   Web of Science ®Google Scholar
• Chen, W., N. Hu, and X. Zhao. 2022. Information asymmetry, regulatory inquiry, and company mergers and acquisitions: Evidence from Shenzhen stock exchange comment letters. Accounting & Finance 62 (2):2497–542.
   Web of Science ®Google Scholar
• Cheng, S., R. Felix, and R. Indjejikian. 2019. Spillover effects of internal control weakness disclosures: The role of audit committees and board connections. Contemporary Accounting Research 36 (2):934–57. doi:10.1111/1911-3846.12448.
   Web of Science ®Google Scholar
• Cleary, S. 1999. The relationship between firm investment and financial status. The Journal of Finance 54 (2):673–92. doi:10.1111/0022-1082.00121.
   Web of Science ®Google Scholar
• Cosci, S., V. Meliciani, and V. Sabato. 2016. Relationship lending and innovation: Empirical evidence on a sample of European firms. Economics of Innovation & New Technology 25 (4):335–57. doi:10.1080/10438599.2015.1062098.
   Web of Science ®Google Scholar
• Cunningham, L. M., B. A. Johnson, E. S. Johnson, and L. L. Lisic. 2020. The switch‐up: An Examination of changes in earnings management after receiving SEC comment letters. Contemporary Accounting Research 37 (2):917–44. doi:10.1111/1911-3846.12546.
   Web of Science ®Google Scholar
• David, P., J. P. O’Brien, and T. Yoshikawa. 2008. The implications of debt heterogeneity for R&D investment and firm performance. Academy of Management Journal 51 (1):165–81. doi:10.5465/amj.2008.30772877.
   Web of Science ®Google Scholar
• Gietzmann, M., and A. Pettinicchio. 2014. External auditor reassessment of client business risk following the issuance of a comment letter by the SEC. European Accounting Review 23 (1):57–85. doi:10.1080/09638180.2013.774703.
   Web of Science ®Google Scholar
• Gonçalves, A. B., R. F. Schiozer, and H. H. Sheng. 2018. Trade credit and product market power during a financial crisis. Journal of Corporate Finance 49:308–23. doi:10.1016/j.jcorpfin.2018.01.009.
   Web of Science ®Google Scholar
• Gow, I. D., G. Ormazabal, and D. J. Taylor. 2010. Correcting for cross-sectional and time-series dependence in accounting research. The Accounting Review 85 (2):483–512. doi:10.2308/accr.2010.85.2.483.
   Web of Science ®Google Scholar
• Hu, N., J. Xu, and S. Xue. 2022. Regulatory risk and auditors’ reporting conservatism: Evidence from Chinese comment letters. Journal of Accounting and Public Policy 41:106997. doi:10.1016/j.jaccpubpol.2022.106997.
   Web of Science ®Google Scholar
• Jones, J. 1991. Earnings management during import relief investigations. Journal of Accounting Research 29 (2):193–228. doi:10.2307/2491047.
   Web of Science ®Google Scholar
• Kedia, S., K. Koh, and R. Shivaram. 2015. Evidence on contagion in earnings management. The Accounting Review 90 (6):2337–73. doi:10.2308/accr-51062.
   Web of Science ®Google Scholar
• Laplante, S. K., H. A. Skaife, L. A. Swenson, and D. D. Wangerin. 2019. Limits of tax regulation: Evidence from strategic R&D classification and the R&D tax credit. Journal of Accounting and Public Policy 38 (2):89–105. doi:10.1016/j.jaccpubpol.2019.02.003.
   Web of Science ®Google Scholar
• Polk, C., and P. Sapienza. 2008. The stock market and corporate investment: A test of catering theory. The Review of Financial Studies 22 (1):187–217.
   Web of Science ®Google Scholar
• Sturm, M., and S. Nüesch. 2019. Strong shareholder rights, internal capital allocation efficiency, and the moderating role of market competition and external financing needs. Review of Managerial Science 13 (1):93–111. doi:10.1007/s11846-017-0244-1.
   Web of Science ®Google Scholar
• Yao, Y., and S. Xue. 2019. Comment letters and internal control opinion shopping. China Journal of Accounting Studies 7 (2):214–44. doi:10.1080/21697213.2019.1676066.
   Google Scholar
• Yao, Y., S. Xue, and T. Sun. 2020. Do comment letters from the stock exchanges have governance effect on R&D manipulation? China Journal of Accounting Studies 8 (4):528–55. doi:10.1080/21697213.2021.1966176.
   Google Scholar
• Yu, Y., Y. T. Lee, and R. C. W. Fok. 2021. The determinants of high-interest entrusted loans in China. Journal of Business Finance & Accounting 48:405–30. doi:10.1111/jbfa.12474.
   Web of Science ®Google Scholar