Journal of Social Economics Research

Effects of ownership type of Chinese firms on the relationship between accounting conservatism and credit ratings

2025-12-20T05:16:43-06:00

Accounting conservatism (AC) is a fundamental element of financial reporting and indicates the quality of accounting information. It is particularly crucial in assessing the usefulness of accounting information as it determines a company's cost of capital in the bond market based on accounting information. This study analyzes the relationship between AC and bond credit ratings and whether this relationship differs depending on the company's ownership structure, specifically between Chinese-owned and privately held companies. This study utilizes the ordered probit regression methodology using financial data from the CSMAR database and Wind database for 2015-2019, using STATA. The results suggest two key findings. First, higher levels of AC are associated with higher credit ratings in the bond market. This finding is consistent with previous studies on AC. Second, Chinese government ownership negatively affects the relationship between AC and credit ratings. This implies that the impact of Chinese government ownership on the credit ratings of Chinese government-owned companies is already reflected in the bond market, meaning that ownership alone does not affect the relationship. Conversely, it implies that the level of AC and the type of private enterprise positively impact the process of determining the credit rating of private enterprises. These results imply that Chinese government-owned enterprises may be at a disadvantage compared to private enterprises in the bond market. However, the results also have policy implications, suggesting that Chinese government-owned enterprises are less significantly affected by credit ratings in the bond market due to their relatively strong government oversight and control.

Accounting conservatism and fair value model selection of investment property in ASEAN

2026-02-16T21:31:14-06:00

This research aimed to investigate the effect of debt levels and the moderating role of a country’s institutional factors influencing the choice of fair value models in ASEAN property and real estate companies. The examination of a country's institutional factors as a moderating variable was important since debt policy reflects corporate strategy and national governance. Logistic and moderation regression analyses on 328 companies from 2018 to 2023 showed that higher levels of corporate debt reduced the probability of adopting the fair value model, as inflated asset valuations were avoided. The moderating influence of the country's institutional factors increased the negative effect. Furthermore, this research added empirical evidence about using positive accounting and new institutional theory to explain the selection of policies in cross-country research because the complexity of developing and implementing standards was different. The results showed that developing countries did not use the fair value model, following the inability to maintain banking trust as the primary source of funding. The Ministry of Finance and similar authorities in the five ASEAN countries should coordinate with professional associations to prepare accounting systems and relevant regulatory documents, as well as support reducing the gap between IFRS and local standards to create favorable conditions for companies in applying IFRS in the future.

From assimilation to innovation: A Bayesian Nelson–Phelps model of China’s technological catch-up with the United States

2026-02-16T21:59:05-06:00

Over the past half-century, China has been evolving into the second-largest economic system, which creates endogenous innovation as a key driver of growth. Yet, a scientific inquiry into whether or not this nation can technologically keep pace with the United States (U.S.) remains unexplored. The purpose of this research is to explore China’s possibilities for technological convergence with the frontier, evaluating the logistic against exponential variants within the neo-Schumpeterian diffusion paradigm. The study also assesses how education and other structural capacities—including governance quality, financial capacity, openness policies, and digital infrastructure—condition China’s standing vis-à-vis the frontier. To this end, Bayesian mixed regressions are applied to the Chinese and U.S. time-series data spanning 1996–2022. The research findings indicate that this country’s technological convergence predominantly occurs through implementation rather than innovation. An increasing contribution from innovation-oriented human capital and R&D activities signals China’s steady evolution toward innovation-driven expansion. Policy implications include enhancing the quality of education, strengthening institutional, innovation, and financial capacities, and promoting a balanced combination of technology absorption and generation for China and other emerging economies.