We compare China’s financial system to those of the developed countries, in particular, the US system dominated by financial markets, and the German system dominated by the banking sector. We examine financial systems’ properties, including risk sharing, information provision, funding new and mature industries, financial crisis, corporate governance, and the relation between the financial and l...

This study investigated the association between mandatory disclosure and company value expressed in share price anticipation of earnings by using a sample of UK companies included in the FTSE 350 Index for a period of five years, from 2006 to 2010. A mandatory disclosure index was developed according to the IFRSs, which the companies listed in the stock market were obliged to adopt since 2005, ...

In a customer-supplier relationship, when a third party sues the supplier, the resulting litigation loss contingency may trigger the principal customer’s concern regarding supply chain risks. We find that customers are likely to hedge such supply chain risks by weakening or terminating relationships when suppliers are mired in litigation. To avoid the significant adverse impact on the operating...

While the purpose of financial accounting is the provision of useful information to those external, related groups who make decisions about a firm, the number of profits calculated in financial accounting is also utilized as the basis for the assessment of taxable income. In Japan, the accounting system under the Commercial Law (ASCL) is a typical financial accounting system. ASCL is closely co...

We provide cross-country evidence to examine how financial market development affects innovation. Using a large data set including 34 developed as well as emerging countries, we differentiate the impacts of equity market and credit market development on a country’s innovation productivity measured by patenting. Our baseline results show that, while the development of equity markets encourages i...

Recent research on financial market development has focused on the nature of the legal system. The law-and-finance literature, however, exclusively focuses on the abuse of management power as a major cause of shareholder expropriation. The role of the administrative capability of the state in providing and guaranteeing the institutional foundations for securities development is thereby overlook...

  Background: The rule "anyone who has the power over things" is one of the legal rules that the jurists of Islam have been referring to for more than a thousand years and it is very useful in trials and even administrative authorities. It is also one of the most important and practical rules in civil and jurisprudential law because it is closely related to confession, which is one of the main...