Since male CEOs dominate corporate leadership, the literature on top management decision making suffers from an implicit masculine bias. Although research indicates that males and females are biologically and psychologically different, the leadership characteristics of female CEOs are largely unexplored. Two of these characteristics, risk aversion and ethical sensitivity, are tied to key accounting issues, such as conservatism in financial reporting and steadfast opposition to fraud. In this study, we examine the relationship between CEO gender and accounting conservatism, and find (...) a positive association between the two. Consistent with conventional wisdom, this association appears to be stronger in firms with high rather than low litigation and takeover risks. This study contributes to the ethics literature by highlighting the benefits of gender diversity in upholding the integrity of financial reporting. (shrink)

This paper examines the association between corporate philanthropy and tunneling by controlling shareholders. Using a unique dataset from China, the paper finds evidence that firms donating more are less likely to tunnel. The negative association between philanthropy and tunneling is stronger when firms are faced with more severe agency conflicts, as indicated by lower largest shareholding, fewer growth opportunities, lower state ownership, and weaker product market competition. The results suggest that companies engaging in philanthropy have incentives to enhance their reputations (...) and improve their relationships with stakeholders. (shrink)

This study investigates the impact of labor unionization on stock price crash risk. We find that labor unionization is negatively associated with stock price crash risk. Such negative relation is more pronounced when firms can intimate more credible evidence on unfavorable prospects and when firms face more powerful labor unions. Our findings are consistent with the notion that firms take strategic actions to reduce the bargaining advantages enjoyed by labor unions and that labor unions force firms to take less risky (...) investments and discontinue underperformed projects more timely, which leads to lower stock price crash risk. (shrink)

The industrial product-service system is a kind of system engineering methodology, integration scheme, and business model to realize service value by adding intangible services in the whole life cycle. However, the design of the system involves many difficulties such as uncertain customer demands, strong subjectivity of the experience design, and long debugging times. Methods for solving upper problems are therefore essential. This paper presents a design model that integrates an improved affinity propagation clustering algorithm, quality function development, and axiomatic design. (...) The entire process of designing an iPSS can be split into three steps. First, uncertain customer demands is determined and standardized. Second, the functions of the product-service system are investigated. Finally, the structures of the system are determined. This paper examines the example of the control service of an iPSS for a water heater tank capping press. An improved AP clustering algorithm is used to determine standardized customer demands, the proposed QFD, and an AD integration model to initially establish a mapping between the customer demands domain and the function domain and clarify the design focus. Next, a QFD- and AD-integrated model is constructed to establish a mapping between the function domain and the structure domain and optimize the control scheme through the quality of its risk prediction. Finally the paper verifies that the upper process and methods can guide the design process effectively in production applications. (shrink)