Journal of Social Economics Research

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

SungMan Yoon — 2026-01-01

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

Kholilah Kholilah — 2026-02-16

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

Nguyen Thi Ngoc Nga — 2026-02-16

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.

A quantitative evaluation of the financial capacity of the small and medium-sized enterprises in Hanoi, Vietnam

Dao Truong Thanh — 2026-03-02

This study examines the financial capacity of small and medium-sized enterprises in Hanoi City, Vietnam, using a quantitative set of financial indicators. The research develops a system of fifteen observed indicators grouped into liquidity, operational efficiency, profitability, and financial leverage, based on theory and expert views. Data were collected from 113 enterprises and processed through Cronbach's Alpha, exploratory factor analysis, and multiple linear regression. The results show that all four groups have a positive and statistically significant effect on financial capacity. Liquidity shows the strongest influence, followed by operational efficiency and profitability, while financial leverage has a smaller but still noticeable effect. These findings suggest that steady cash flow, better internal operations, and profit generation remain key elements supporting the financial condition of small and medium-sized enterprises in the current environment. The results also highlight areas that policymakers and business practitioners can consider when designing support programs or adjusting internal management practices. The study adds to the existing literature by applying a structured financial indicator system to evaluate the financial capacity of small and medium-sized enterprises in Hanoi, Vietnam, which has not been examined systematically before.

The impact of public debt and monetary policy on economic stability: Evidence from 30 Asian economies over two decades

Tiep Anh Nguyen — 2026-03-02

The objective of this study was to examine the impact of public debt and monetary policy on economic stability in Asia. Economic stability here is defined by growth stability and inflation. Using panel data from 30 Asian economies for the period from 2004 to 2024, we applied a Panel Vector Autoregression (PVAR) technique to explore the dynamic links among these policy tools and macroeconomic performance over time. The impulse response function (IRF) analysis reveals that monetary policy, through lending interest rates, has a strong and sustained negative impact on economic stability in the long run, with response coefficients ranging from -0.5 to -0.6 percentage points from the 6th to 10th periods, stabilizing at approximately -0.5 percentage points from the 8th period onward. Public debt exhibits an inverted U-shaped nonlinear relationship with economic stability, showing a positive stimulative effect in the short term (first 2-3 years) but reversing to negative from the 4th to 5th year onward. Both policy instruments also significantly affect inflation, with peak impacts of approximately 6-7 percentage points in the second period. However, the inflation channel is not the primary transmission mechanism to economic stability, as the direct effects through investment and credit channels are more substantial. Based on the research results, we propose policy implications for economic stability in Asian countries.