Paper Co-authored by Professor Wang Xiaoqiao Won the “Excellent Paper Award” at the 23rd Symposium on Empirical Accounting Research in China by the Council of China Accounting Review
Days ago, the paper titled Professional Connections and Suppliers’ Investment Efficiency co-authored by Professor Wang Xiaoqiao from the School of Management and Economics (SME), The Chinese University of Hong Kong (CUHK-Shenzhen) won the “Excellent Paper Award” at the 23rd Symposium on Empirical Accounting Research in China by the Council of China Accounting Review.
Hosted by the Council of China Accounting Review and organized by the School of Accountancy of Jiangxi University of Finance and Economics, the symposium, under the theme of “Accounting Research in the Digital Age,” attracted experts and scholars from many well-known universities at home and abroad, including the National University of Singapore, Singapore Management University, Monash University, The Hong Kong Polytechnic University, Tsinghua University, Peking University, Renmin University of China, Huazhong University of Science and Technology, Fudan University, Nanjing University, Shanghai Jiao Tong University, Zhejiang University, Sun Yat-sen University, Sichuan University, Northwestern Polytechnical University, Xiamen University, Shanghai University of Finance and Economics, Central University of Finance and Economics, and Southwestern University of Finance and Economics. (*By no particular order)
Wang Xiaoqiao
Assistant Professor, SME, CUHK-Shenzhen
Research Field
Empirical Corporate Finance and Financial Accounting, including Product market relations, International Capital Markets, News disclosure Strategies, Law and Finance, Stakeholders
About the award-winning paper
Professional Connections and Suppliers’ Investment Efficiency
The study explores the role of professional connections in supply chains in suppliers’ investment decisions. It is found that in supply chains with professional connections, suppliers’ investment efficiency will be improved. The phenomenon is more prominent if the customer’s business risk is higher, and the supplier produces durable goods with weaker bargaining power. Mechanism analysis shows that professional connections in supply chains can promote information exchange and mutual trust, thereby reducing suppliers’ inefficient investment. In addition, in supply chains with professional connections, both overinvestment and underinvestment will be suppressed. At the same time, professional connections in bilateral relationships can also improve suppliers’ inventory management and increase customers’ chances of obtaining commercial credit. In summary, the study clarifies how supply chains with professional connections affect suppliers’ investment quality and the cooperative relationship between partner companies.
