The Discounted Value of Accounts Receivables in State-owned Enterprises: Evidence and Mechanism Explanation

Abstract

Abstract: Using non-state-owned listed companies as a benchmark, this paper estimates the market value of the accounts receivable of the state-owned listed companies in China. We find that SOEs' accounts receivables in China do have significantly lower market value and lower quality than these of non-SOEs. Further, we provide evidence that low market value of accounts receivables for SOEs is attributed to the severer agency problems in SOEs. We find that the value of accounts receivables is significantly lower in SOEs with lower supervision from audits, with lower proportion of non-state-owned shares, with CEO duality, and with more media coverage, as well as with lower proportion of institutional investor shares. Also, we find the value of accounts receivables is significantly lower in SOEs with lower relative monetary compensation and with lower management shareholding proportion. Based on perspective of accounts receivables, our paper provides new evidences of the agency conflicts, and provides new enlightenments for the anti-corruption and regulation of SOEs.

Key words: accounts receivables, agency conflicts, firm value

Ying Qianwei, Liu Jinsong. The Discounted Value of Accounts Receivables in State-owned Enterprises: Evidence and Mechanism Explanation[J]. Management Review, 2021, 33(8): 263-277.

References

[1] Love I., Preve L. A., Sarria-Allende V. Trade Credit and Bank Credit:Evidence from Recent Financial Crises[J]. Journal of Financial Economics, 2007,83(2):453-469
[2] Petersen M. A., Rajan R. G. Trade Credit:Theories and Evidence[J]. The Review of Financial Studies, 1997,10(3):661-691
[3] Fisman R., Raturi M. Does Competition Encourage Credit Provision? Evidence from African Trade Credit Relationships[J]. Review of Economics and Statistics, 2004,86(1):345-352
[4] McNichols M., Wilson G. P. Evidence of Earnings Management from the Provision for Bad Debts[J]. Journal of Accounting Research, 1988,26(3):1-31
[5] Roychowdhury S. Earnings Management through Real Activities Manipulation[J]. Journal of Accounting and Economics, 2006,42(3):335-370
[6] Jian M., Wong T. J. Propping through Related Party Transactions[J]. Review of Accounting Studies, 2010,15(1):70-105
[7] Wang Q., Wong T. J., Xia L. State Ownership, the Institutional Environment, and Auditor Choice:Evidence from China[J]. Journal of Accounting and Economics, 2008,46(1):112-134
[8] Hill M. D., Kelly G. W., Lockhart G. B. Shareholder Returns from Supplying Trade Credit[J]. Financial Management, 2012,41(1):255-280
[9] Pierce L., Snyder J. A. The Historical Slave Trade and Firm Access to Finance in Africa[J]. The Review of Financial Studies, 2018,31(1):142-174
[10] Lin S., Ye H. Foreign Direct Investment, Trade Credit, and Transmission of Global Liquidity Shocks:Evidence from Chinese Manufacturing Firms[J]. The Review of Financial Studies, 2018,31(1):206-238
[11] Levine R., Lin C., Xie W. Corporate Resilience to Banking Crises:The Roles of Trust and Trade Credit[J]. Journal of Financial and Quantitative Analysis, 2018,53(4):1441-1477
[12] Guariglia A., Mateut S. External Finance and Trade Credit Extension in China:Does Political Affiliation Make a Difference?[J]. The European Journal of Finance, 2016,22(4-6):319-344
[13] Gopalan R., Mukherjee A., Singh M. Do Debt Contract Enforcement Costs Affect Financing and Asset Structure?[J]. The Review of Financial Studies, 2016,29(10):2774-2813
[14] 吴昊旻,王杰,买生. 多元化经营、银行信贷与商业信用提供——兼论融资约束与经济周期的影响[J]. 管理评论, 2017,29(10):223-233
[15] 顾雷雷,郭国庆,彭俞超. 融资约束、营销能力和企业投资[J]. 管理评论, 2018,30(7):100-113
[16] 陈胜蓝,刘晓玲. 经济政策不确定性与公司商业信用供给[J]. 金融研究, 2018,(5):172-190
[17] 陈冬华,陈信元,万华林. 国有企业中的薪酬管制与在职消费[J]. 经济研究, 2005,(2):92-101
[18] Bai J., Lian L. Why do State-Owned Enterprises Over-Invest? Government Intervention or Managerial Entrenchment[J]. China Journal of Accounting Studies, 2013,1(3-4):236-259
[19] 汪伟,金祥荣,汪淼军. 激励扭曲下的管理层收购[J]. 经济研究, 2006,(3):82-89
[20] 李增泉,孙铮,王志伟. "掏空"与所有权安排——来自我国上市公司大股东资金占用的经营证据[J]. 会计研究, 2004,(12):3-13
[21] 杨兴全,张照南. 制度背景, 股权性质与公司持有现金价值[J]. 经济研究, 2008,(12):111-123
[22] Wilson N., Summers B. Trade Credit Terms Offered by Small Firms:Survey Evidence and Empirical Analysis[J]. Journal of Business Finance & Accounting, 2002,29(3-4):317-351
[23] Smith J. K. Trade Credit and Informational Asymmetry[J]. The Journal of Finance, 1987,42(4):863-872
[24] Deloof M., Jegers M. Trade Credit, Product Quality, and Intragroup Trade:Some European Evidence[J]. Financial Management, 1996,25(3):33-43
[25] Lee Y. W., Stowe J. D. Product Risk, Asymmetric Information, and Trade Credit[J]. The Journal of Financial and Quantitative Analysis, 1993,28(2):285-300
[26] Petersen M. A., Rajan R. G. Trade Credit:Theory and Evidence[J]. Review of Financial Studies, 1997,10(3):661-691
[27] Emery G. W. An Optimal Financial Response to Variable Demand[J]. The Journal of Financial and Quantitative Analysis, 1987,22(2):209-225
[28] Wilner B. S. The Exploitation of Relationships in Financial Distress:The Case of Trade Credit[J]. The Journal of Finance, 2000,55(1):153-178
[29] Mian S. L., Smith C. W. Accounts Receivable Management Policy:Theory and Evidence[J]. The Journal of Finance, 1992,47(1):169-200
[30] Molina C. A., Preve L. A. Trade Receivables Policy of Distressed Firms and Its Effect on the Costs of Financial Distress[J]. Financial Management, 2009,38(3):663-686
[31] 李寿喜. 产权, 代理成本和代理效率[J]. 经济研究, 2007,(1):102-113
[32] 吴延兵. 国有企业双重效率损失研究[J]. 经济研究, 2012,(3):15-27
[33] Wei Z., Xie F., Zhang S. Ownership Structure and Firm Value in China's Privatized Firms:1991-2001[J]. Journal of Financial and Quantitative Analysis, 2005,40(1):87-108
[34] 刘瑞明. 中国的国有企业效率:一个文献综述[J]. 世界经济, 2013,36(11):136-160
[35] 孙天法. 内部人控制的形式、危害与解决措施[J]. 中国工业经济, 2003,(7):53-60
[36] 杜金卿,张帆. 论国有企业经营者的选任、激励和监督机制[J]. 南开经济研究, 1999,(6):13-17
[37] 张维迎. 企业理论与中国企业改革[M]. 北京:北京大学出版社, 1999
[38] 梁丹. 关于完善国有公司企业董事会制度的思考[J]. 经济体制改革, 2008,(1):78-80
[39] 南开大学公司治理研究中心公司治理评价课题组. 中国上市公司治理指数与治理绩效的实证分析[J]. 管理世界, 2004,(2):63-74
[40] 张维迎. 产权、激励与公司治理[M]. 北京:经济科学出版社, 2010
[41] 刘运国,郑巧,蔡贵龙. 非国有股东提高了国有企业的内部控制质量吗?——来自国有上市公司的经验证据[J]. 会计研究, 2016,(11):61-68
[42] 陈林,唐杨柳. 混合所有制改革与国有企业政策性负担——基于早期国企产权改革大数据的实证研究[J]. 经济学家, 2014,(11):13-23
[43] Jensen M. C. The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems[J]. The Journal of Finance, 1993,48(3):831-880
[44] Tuggle C. S., Sirmon D. G., Reutzel C. R., et al. Commanding Board of Director Attention:Investigating How Organizational Performance and CEO Duality Affect Board Members' Attention to Monitoring[J]. Strategic Management Journal, 2010,31(9):946-968
[45] 周绍妮,张秋生,胡立新. 机构投资者持股能提升国企并购绩效吗?——兼论中国机构投资者的异质性[J]. 会计研究, 2017,(6):67-74
[46] Mitra S., Cready W. M. Institutional Stock Ownership, Accrual Management, and Information Environment[J]. Journal of Accounting, Auditing & Finance, 2005,20(3):257-286
[47] Almazan A., Hartzell J. C., Starks L. T. Active Institutional Shareholders and Costs of Monitoring:Evidence from Executive Compensation[J]. Financial Management, 2005,34(4):5-34
[48] Aggarwal R., Erel I., Ferreira M., et al. Does Governance Travel around the World? Evidence from Institutional Investors[J]. Journal of Financial Economics, 2011,100(1):154-181
[49] Fan J. P., Wong T. J. Do External Auditors Perform a Corporate Governance Role in Emerging Markets? Evidence from East Asia[J]. Journal of Accounting Research, 2005,43(1):35-72
[50] 王艳艳,陈汉文. 审计质量与会计信息透明度——来自中国上市公司的经验数据[J]. 会计研究, 2006,(4):9-15
[51] 高强,伍利娜. 大股东资金占用与审计师选择的再检验[J]. 审计研究, 2007,(5):84-90
[52] 孔东民,刘莎莎,应千伟. 公司行为中的媒体角色:激浊扬清还是推波助澜?[J]. 管理世界, 2013,(7):145-162
[53] Lafond R., Roychowdhury S. Managerial Ownership and Accounting Conservatism[J]. Journal of Accounting Research, 2008,46(1):101-135
[54] Warfield T. D., Wild J. J., Wild K. L. Managerial Ownership, Accounting Choices, and Informativeness of Earnings[J]. Journal of Accounting and Economics, 1995,20(1):61-91
[55] Zhang X., Bartol K. M., Smith K. G., et al. CEOs on the Edge:Earnings Manipulation and Stock-Based Incentive Misalignment[J]. Academy of Management Journal, 2008,51(2):241-258
[56] Faulkender M., Wang R. Corporate Financial Policy and the Value of Cash[J]. The Journal of Finance, 2006,61(4):1957-1990
[57] Yu F. F. Analyst Coverage and Earnings Management[J]. Journal of Financial Economics, 2008,88(2):245-271