IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v69y2024ics0275531924000606.html
   My bibliography  Save this article

Does air pollution affect the accrual anomaly in the Chinese capital market? From the perspective of investment adjustment strategy

Author

Listed:
  • Hu, Shuya
  • Wang, Shengnian

Abstract

Air pollution poses a threat to human health and economic development and has attracted worldwide attention. China also faces the problem of excessive air pollutant emissions. We use Chinese A-share listed companies from 2007 to 2020 as samples and explore the impact of air pollution on the accrual anomaly. We find that air pollution alleviates the accrual anomaly caused by the investment growth hypothesis but has no significant effect on that caused by the earnings persistence hypothesis. Furthermore, we explore how air pollution mitigates the anomaly from the perspective of investment strategy adjustments. We find that enterprises reduce the overall growth in investments through a strategy of reducing growth in innovation investments and increasing growth in financial investments without a significant impact on the growth in environmental investments. This finding indicates that air pollution can alleviate the anomaly by sacrificing innovative activities. The key to improving efficiency is to improve system construction, which should not be at the expense of the ecological environment.

Suggested Citation

  • Hu, Shuya & Wang, Shengnian, 2024. "Does air pollution affect the accrual anomaly in the Chinese capital market? From the perspective of investment adjustment strategy," Research in International Business and Finance, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000606
    DOI: 10.1016/j.ribaf.2024.102267
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924000606
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102267?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.