Browsing by Author "Cheng, F."
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Item Open Access Building eco-friendly corporations: The role of minority shareholders(Springer, 2022-12-06) Yao, S.; Pan, Y.; Wang, L.; Şensoy, Ahmet; Cheng, F.Based on China’s mandatory requirement for listed firms to implement online voting in their annual general shareholder meetings, we investigate whether and how minority shareholders influence corporate environmental performance (CEP). We use the difference-in-difference approach and find that the implementation of online voting promotes minority shareholders’ participation in shareholder meetings, which, in turn, leads to improved CEP of listed firms. We discover that “local pollution” exposure and “the increasing awareness of listed firms’ environmental risks” are the main motives of minority shareholders concerning listed firms’ environmental performance. Furthermore, we find that the minority shareholders improve CEP of listed firms through influencing groups with greater bargaining power. © 2022, The Author(s), under exclusive licence to Springer Nature B.V.Item Embargo Can investors’ informed trading predict cryptocurrency returns? Evidence from machine learning(Elsevier Inc., 2022-05-24) Wang, Y.; Wang, C.; Şensoy, Ahmet; Yao, S.; Cheng, F.As an emerging asset, cryptocurrencies have attracted more and more attention from investors and researchers in recent years. With the gradual convergence of the investors in cryptocurrency and traditional financial markets, the research on investor trading behavior from the perspective of microstructure has become increasingly important in cryptocurrency market. In this paper, we study whether investors’ informed trading behavior can significantly predict cryptocurrency returns. We use various machine learning algorithms to verify the contribution of informed trading to the predictability of cryptocurrency returns. The results show that informed trading plays a role in the prediction of some individual cryptocurrency returns, but it cannot significantly improve the prediction accuracy in an average sense of the whole market. The lack of market supervision of cryptocurrency market may be the main factor for relatively low efficiency of this market, and policymakers need to pay attention to it.Item Open Access The dark side of marital leadership: Evidence from China(Elsevier BV, 2021-10) Yao, S.; Zhao, W.; Şensoy, Ahmet; Cheng, F.; Goodell, J. W.Using a unique dataset of Chinese private firms, we find that marital leadership is associated with higher propensity for financial fraud. We examine the potential economic mechanisms that lead to this result, finding that weak internal supervision and inefficient decision-making provide crucial linkages between marital leadership and financial fraud. However, well-functioning corporate governance mechanisms reduce the negative effects of marital leadership. Our findings provide important empirical evidence for the effect of family involvement in corporate governance and contribute to the literature on the determinants of financial fraud in listed firms.Item Open Access Government’s awareness of Environmental protection and corporate green innovation: A natural experiment from the new environmental protection law in China(Economic Society of Australia Inc., 2021-06) Fang, Z.; Kong, X.; Şensoy, Ahmet; Cui, X.; Cheng, F.Based on the impact of the new environmental protection law promulgated by the Chinese government in 2015, we employ the difference-in-differences (DID) approach to investigate the impact of government environmental regulation on corporate green innovation. The evidence shows that government environmental regulation can significantly increase the number of green patents of heavily polluting industries. This result holds after a series of robustness tests. The analysis of the economic mechanism indicates that the new environmental protection law brings supervision pressure to heavily polluting firms, prompting them to improve the quality of information disclosure, thus improving green innovation. In addition, the regional economic development level, government subsidies, and public supervision can significantly affect the positive impact of the new environmental protection law. Meanwhile, the effect is more prominent in non-state-owned enterprises and in firms with small scale, low profitability, and weak internal governance.Item Open Access Green credit policy and firm performance: What we learn from China(Elsevier BV, 2021-09) Yao, S.; Pan, Y.; Şensoy, Ahmet; Uddin, G. S.; Cheng, F.We explore the effect of green credit policy on firm performance of listed firms in China. We find that green credit policy reduces firm performance in heavily polluting industries. This effect is more prominent in state-owned enterprises, firms with large size, high institutional ownership, high analyst coverage and during high economic policy uncertainty period. Moreover, we observe that green credit policy decreases heavily polluting firms' performance by increasing firm financing constraints and decreasing investment level. Our results help to restrain heavily polluting enterprises and promote industrial transformation in developing markets.Item Open Access Investor attention and environmental information disclosure quality: Evidence from heavy pollution industries in China(John Wiley & Sons Ltd., 2023-03-20) Yao, S.; Li, T.; Şensoy, Ahmet; Fang, Z.; Cheng, F.Using listed firms from 16 heavy pollution industries in China, we show that investor attention can significantly improve the quality of corporate environmental information disclosure. By examining the heterogeneity effects of investor attention under different firm characteristics, locations, and external supervision, we reveal that this improvement effect is more pronounced for smaller firms, state-owned enterprises, firms with weaker corporate governance, and firms located in China's western regions (regions with poor economic development). We further find that public's attention to environmental issues promotes the investor attention level on firms in heavy pollution industries, thus improving firms' environmental information disclosure quality. Overall, our results emphasize the role of external investor attention on corporate environmental issues.Item Embargo Learning from failures: Director interlocks and corporate misconduct(Elsevier BV, 2022-10-20) Wang, Z.; Yao, S.; Şensoy, Ahmet; Goodell, J. W.; Cheng, F.Motivated by social learning and social network theories, we argue that firms learn from failures in their director interlocked firms. Empirical results show that enforcement for violations in errant firms inhibit misconduct commitments in focal firms (i.e., firms interlocked with errant firms). We investigate the role of interlocking directors in facilitating the inhibition of misconduct. Empirical results evidence that information transmission by interlocking directors plays a crucial role in the process of inhibitive learning. Besides information transmission, we also find that interlocking directors react with higher diligence in focal firms. Further, overall diligence of independent directors in focal firms is heightened. Additionally, we test several factors that influence the significance of this inhibition, including characteristics of interlocking directors, firm features, and industry characters. Finally, the enforcement can deter more than one form of misconduct in focal firms. Overall, we thoroughly investigate the reactions of focal firms and their directors. Our study focuses on inhibitive learning, which has received limited attention in corporate finance literature.Item Open Access Oncogenic signaling pathways in the Cancer Genome Atlas(Cell Press, 2018) Sanchez-Vega, F.; Mina, M.; Armenia, J.; Chatila, W. K.; Luna, A.; La, K. C.; Dimitriadoy, S.; Liu, D. L.; Kantheti, H. S.; Saghafinia, S.; Chakravarty, D.; Daian, F.; Gao, Q.; Bailey, M. H.; Liang, W. -W.; Foltz, S. M.; Shmulevich, I.; Ding, L.; Heins, Z.; Ochoa, A.; Gross, B.; Gao, J.; Zhang, H.; Kundra, R.; Kandoth, C.; Bahceci, I.; Dervishi, L.; Doğrusöz, Uğur; Zhou, W.; Shen, H.; Laird, P. W.; Way, G. P.; Greene, C. S.; Liang, H.; Xiao, Y.; Wang, C.; Iavarone, A.; Berger, A. H.; Bivona, T. G.; Lazar, A. J.; Hammer, G. D.; Giordano, T.; Kwong, L. N.; McArthur, G.; Huang, C.; Tward, A. D.; Frederick, M. J.; McCormick, F.; Meyerson, M.; Caesar-Johnson, S. J.; Demchok, J. A.; Felau, I.; Kasapi, M.; Ferguson, M. L.; Hutter, C. M.; Sofia, H. J.; Tarnuzzer, R.; Wang, Z.; Yang, L.; Zenklusen, J. C.; Zhang, J. J.; Chudamani, S.; Liu, J.; Lolla, L.; Naresh, R.; Pihl, T.; Sun, Q.; Wan, Y.; Wu, Y.; Cho, J.; DeFreitas, T.; Frazer, S.; Gehlenborg, N.; Getz, G.; Heiman, D. I.; Kim, J.; Lawrence, M. S.; Lin, P.; Meier, S.; Noble, M. S.; Saksena, G.; Voet, D.; Zhang, H.; Bernard, B.; Chambwe, N.; Dhankani, V.; Knijnenburg, T.; Kramer, R.; Leinonen, K.; Liu, Y.; Miller, M.; Reynolds, S.; Shmulevich, I.; Thorsson, V.; Zhang, W.; Akbani, R.; Broom, B. M.; Hegde, A. M.; Ju, Z.; Kanchi, R. S.; Korkut, A.; Li, J.; Liang, H.; Ling, S.; Liu W.; Lu, Y.; Mills, G. B.; Ng, K. -S.; Rao, A.; Ryan, M.; Wang, J.; Weinstein, J. N.; Zhang, J.; Abeshouse, A.; Armenia, J.; Chakravarty, D.; Chatila, W. K.; de, Bruijn, I.; Gao, J.; Gross, B. E.; Heins, Z. J.; Kundra, R.; La, K.; Ladanyi, M.; Luna, A.; Nissan, M. G.; Ochoa, A.; Phillips, S. M.; Reznik, E.; Sanchez-Vega, F.; Sander, C.; Schultz, N.; Sheridan, R.; Sumer, S. O.; Sun, Y.; Taylor, B. S.; Wang, J.; Zhang, H.; Anur, P.; Peto, M.; Spellman, P.; Benz, C.; Stuart, J. M.; Wong, C. K.; Yau, C.; Hayes, D. N.; Parker, J. S.; Wilkerson, M. D.; Ally, A.; Balasundaram, M.; Bowlby, R.; Brooks, D.; Carlsen, R.; Chuah, E.; Dhalla, N.; Holt, R.; Jones, S. J. M.; Kasaian, K.; Lee, D.; Ma, Y.; Marra, M. A.; Mayo, M.; Moore, R. A.; Mungall, A. J.; Mungall, K.; Robertson, A. G.; Sadeghi, S.; Schein, J. E.; Sipahimalani, P.; Tam, A.; Thiessen, N.; Tse, K.; Wong, T.; Berger, A. C.; Beroukhim, R.; Cherniack, A. D.; Cibulskis, C.; Gabriel, S. B.; Gao, G. F.; Ha, G.; Meyerson, M.; Schumacher, S. E.; Shih, J.; Kucherlapati, M. H.; Kucherlapati, R. S.; Baylin, S.; Cope, L.; Danilova, L.; Bootwalla, M. S.; Lai, P. H.; Maglinte, D. T.; Van, Den, Berg, D. J.; Weisenberger, D. J.; Auman, J. T.; Balu, S.; Bodenheimer, T.; Fan, C.; Hoadley, K. A.; Hoyle, A. P.; Jefferys, S. R.; Jones, C. D.; Meng, S.; Mieczkowski, P. A.; Mose, L. E.; Perou, A. H.; Perou, C. M.; Roach, J.; Shi, Y.; Simons, J. V.; Skelly, T.; Soloway, M. G.; Tan, D.; Veluvolu, U.; Fan, H.; Hinoue, T.; Laird, P. W.; Shen, H.; Zhou, W.; Bellair, M.; Chang, K.; Covington, K.; Creighton, C. J.; Dinh, H.; Doddapaneni, H.; Donehower, L. A.; Drummond, J.; Gibbs, R. A.; Glenn, R.; Hale, W.; Han, Y.; Hu, J.; Korchina, V.; Lee, S.; Lewis, L.; Li, W.; Liu, X.; Morgan, M.; Morton, D.; Muzny, D.; Santibanez, J.; Sheth, M.; Shinbrot, E.; Wang, L.; Wang, M.; Wheeler, D. A.; Xi, L.; Zhao, F.; Hess, J.; Appelbaum, E. L.; Bailey, M.; Cordes, M. G.; Ding, L.; Fronick, C. C.; Fulton, L. A.; Fulton, R. S.; Kandoth, C.; Mardis, E. R.; McLellan, M. D.; Miller, C. A.; Schmidt, H. K.; Wilson, R. K.; Crain, D.; Curley, E.; Gardner, J.; Lau, K.; Mallery, D.; Morris, S.; Paulauskis, J.; Penny, R.; Shelton, C.; Shelton, T.; Sherman, M.; Thompson, E.; Yena, P.; Bowen, J.; Gastier-Foster, J. M.; Gerken, M.; Leraas, K. M.; Lichtenberg, T. M.; Ramirez, N. C.; Wise, L.; Zmuda, E.; Corcoran, N.; Costello, T.; Hovens, C.; Carvalho, A. L.; de, Carvalho, A. C.; Fregnani, J. H.; Longatto-Filho, A.; Reis, R. M.; Scapulatempo-Neto, C.; Silveira, H. C. S.; Vidal, D. O.; Burnette, A.; Eschbacher, J.; Hermes, B.; Noss, A.; Singh, R.; Anderson, M. L.; Castro, P. D.; Ittmann, M.; Huntsman, D.; Kohl, B.; Le, X.; Thorp, R.; Andry, C.; Duffy, E. R.; Lyadov, V.; Paklina, O.; Setdikova, G.; Shabunin, A.; Tavobilov, M.; McPherson, C.; Warnick, R.; Berkowitz, R.; Cramer, D.; Feltmate, C.; Horowitz, N.; Kibel, A.; Muto, M.; Raut, C. P.; Malykh, A.; Barnholtz-Sloan, J. S.; Barrett, W.; Devine, K.; Fulop, J.; Ostrom, Q. T.; Shimmel, K.; Wolinsky, Y.; Sloan, A. E.; De, Rose, A.; Giuliante, F.; Goodman, M.; Karlan, B. Y.; Hagedorn, C. H.; Eckman, J.; Harr, J.; Myers, J.; Tucker, K.; Zach, L. A.; Deyarmin, B.; Hu, H.; Kvecher, L.; Larson, C.; Mural, R. J.; Somiari, S.; Vicha, A.; Zelinka, T.; Bennett, J.; Iacocca, M.; Rabeno, B.; Swanson, P.; Latour, M.; Lacombe, L.; Têtu, B.; Bergeron, A.; McGraw, M.; Staugaitis, S. M.; Chabot, J.; Hibshoosh, H.; Sepulveda, A.; Su, T.; Wang, T.; Potapova, O.; Voronina, O.; Desjardins, L.; Mariani, O.; Roman-Roman, S.; Sastre, X.; Stern, M. -H.; Cheng, F.; Signoretti, S.; Berchuck, A.; Bigner, D.; Lipp, E.; Marks, J.; McCall, S.; McLendon, R.; Secord, A.; Sharp, A.; Behera, M.; Brat, D. J.; Chen, A.; Delman, K.; Force, S.; Khuri, F.; Magliocca, K.; Maithel, S.; Olson, J. J.; Owonikoko, T.; Pickens, A.; Ramalingam, S.; Shin, D. M.; Sica, G.; Van, Meir, E. G.; Zhang, H.; Eijckenboom, W.; Gillis, A.; Korpershoek, E.; Looijenga, L.; Oosterhuis, W.; Stoop, H.; van, Kessel, K. E.; Zwarthoff, E. C.; Calatozzolo, C.; Cuppini, L.; Cuzzubbo, S.; DiMeco, F.; Finocchiaro, G.; Mattei, L.; Perin, A.; Pollo, B.; Chen, C.; Houck, J.; Lohavanichbutr, P.; Hartmann, A.; Stoehr, C.; Stoehr, R.; Taubert, H.; Wach, S.; Wullich, B.; Kycler, W.; Murawa, D.; Wiznerowicz, M.; Chung, K.; Edenfield, W. J.; Martin, J.; Baudin, E.; Bubley, G.; Bueno, R.; De, Rienzo, A.; Richards, W. G.; Kalkanis, S.; Mikkelsen, T.; Noushmehr, H.; Scarpace, L.; Girard, N.; Aymerich, M.; Campo, E.; Giné, E.; Guillermo, A. L.; Van, Bang, N.; Hanh, P. T.; Phu, B. D.; Tang, Y.; Colman, H.; Evason, K.; Dottino, P. R.; Martignetti, J. A.; Gabra, H.; Juhl, H.; Akeredolu, T.; Stepa, S.; Hoon, D.; Ahn, K.; Kang, K. J.; Beuschlein, F.; Breggia, A.; Birrer, M.; Bell, D.; Borad, M.; Bryce, A. H.; Castle, E.; Chandan, V.; Cheville, J.; Copland, J. A.; Farnell, M.; Flotte, T.; Giama, N.; Ho, T.; Kendrick, M.; Kocher, J. -P.; Kopp, K.; Moser, C.; Nagorney, D.; O'Brien, D.; O'Neill, B. P.; Patel, T.; Petersen, G.; Que, F.; Rivera, M.; Roberts, L.; Smallridge, R.; Smyrk, T.; Stanton, M.; Thompson, R. H.; Torbenson, M.; Yang, J. D.; Zhang, L.; Brimo, F.; Ajani, J. A.; Gonzalez, A. M. A.; Behrens, C.; Bondaruk, J.; Broaddus, R.; Czerniak, B.; Esmaeli, B.; Fujimoto, J.; Gershenwald, J.; Guo, C.; Lazar, A. J.; Logothetis, C.; Meric-Bernstam, F.; Moran, C.; Ramondetta, L.; Rice, D.; Sood, A.; Tamboli, P.; Thompson, T.; Troncoso, P.; Tsao, A.; Wistuba, I.; Carter, C.; Haydu, L.; Hersey, P.; Jakrot, V.; Kakavand, H.; Kefford, R.; Lee, K.; Long, G.; Mann, G.; Quinn, M.; Saw, R.; Scolyer, R.; Shannon, K.; Spillane, A.; Stretch, J.; Synott, M.; Thompson, J.; Wilmott, J.; Al-Ahmadie, H.; Chan, T. A.; Ghossein, R.; Gopalan, A.; Levine, D. A.; Reuter, V.; Singer, S.; Singh, B.; Tien, N. V.; Broudy, T.; Mirsaidi, C.; Nair, P.; Drwiega, P.; Miller, J.; Smith, J.; Zaren, H.; Park, J. -W.; Hung, N. P.; Kebebew, E.; Linehan, W. M.; Metwalli, A. R.; Pacak, K.; Pinto, P. A.; Schiffman, M.; Schmidt, L. S.; Vocke, C. D.; Wentzensen, N.; Worrell, R.; Yang, H.; Moncrieff, M.; Goparaju, C.; Melamed, J.; Pass, H.; Botnariuc, N.; Caraman, I.; Cernat, M.; Chemencedji, I.; Clipca, A.; Doruc, S.; Gorincioi, G.; Mura, S.; Pirtac, M.; Stancul, I.; Tcaciuc, D.; Albert, M.; Alexopoulou, I.; Arnaout, A.; Bartlett, J.; Engel, J.; Gilbert, S.; Parfitt, J.; Sekhon, H.; Thomas, G.; Rassl, D. M.; Rintoul, R. C.; Bifulco, C.; Tamakawa, R.; Urba, W.; Hayward, N.; Timmers, H.; Antenucci, A.; Facciolo, F.; Grazi, G.; Marino, M.; Merola, R.; de, Krijger, R.; Gimenez-Roqueplo, A. -P.; Piché, A.; Chevalier, S.; McKercher, G.; Birsoy, K.; Barnett, G.; Brewer, C.; Farver, C.; Naska, T.; Pennell, N. A.; Raymond, D.; Schilero, C.; Smolenski, K.; Williams, F.; Morrison, C.; Borgia, J. A.; Liptay, M. J.; Pool, M.; Seder, C. W.; Junker, K.; Omberg, L.; Dinkin, M.; Manikhas, G.; Alvaro, D.; Bragazzi, M. C.; Cardinale, V.; Carpino, G.; Gaudio, E.; Chesla, D.; Cottingham, S.; Dubina, M.; Moiseenko, F.; Dhanasekaran, R.; Becker, K. -F.; Janssen, K. -P.; Slotta-Huspenina, J.; Abdel-Rahman, M. H.; Aziz, D.; Bell, S.; Cebulla, C. M.; Davis, A.; Duell, R.; Elder, J. B.; Hilty, J.; Kumar, B.; Lang, J.; Lehman, N. L.; Mandt, R.; Nguyen, P.; Pilarski, R.; Rai, K.; Schoenfield, L.; Senecal, K.; Wakely, P.; Hansen, P.; Lechan, R.; Powers, J.; Tischler, A.; Grizzle, W. E.; Sexton, K. C.; Kastl, A.; Henderson, J.; Porten, S.; Waldmann, J.; Fassnacht, M.; Asa, S. L.; Schadendorf, D.; Couce, M.; Graefen, M.; Huland, H.; Sauter, G.; Schlomm, T.; Simon, R.; Tennstedt, P.; Olabode, O.; Nelson, M.; Bathe, O.; Carroll, P. R.; Chan, J. M.; Disaia, P.; Glenn, P.; Kelley, R. K.; Landen, C. N.; Phillips, J.; Prados, M.; Simko, J.; Smith-McCune, K.; VandenBerg, S.; Roggin, K.; Fehrenbach, A.; Kendler, A.; Sifri, S.; Steele, R.; Jimeno, A.; Carey, F.; Forgie, I.; Mannelli, M.; Carney, M.; Hernandez, B.; Campos, B.; Herold-Mende, C.; Jungk, C.; Unterberg, A.; von, Deimling, A.; Bossler, A.; Galbraith, J.; Jacobus, L.; Knudson, M.; Knutson, T.; Ma, D.; Milhem, M.; Sigmund, R.; Godwin, A. K.; Madan, R.; Rosenthal, H. G.; Adebamowo, C.; Adebamowo, S. N.; Boussioutas, A.; Beer, D.; Giordano, T.; Mes-Masson, A. -M.; Saad, F.; Bocklage, T.; Landrum, L.; Mannel, R.; Moore, K.; Moxley, K.; Postier, R.; Walker, J.; Zuna, R.; Feldman, M.; Valdivieso, F.; Dhir, R.; Luketich, J.; Pinero, E. M. M.; Quintero-Aguilo, M.; Carlotti, C. G.; Jr.; Dos, Santos, J. S.; Kemp, R.; Sankarankuty, A.; Tirapelli, D.; Catto, J.; Agnew, K.; Swisher, E.; Creaney, J.; Robinson, B.; Shelley, C. S.; Godwin, E. M.; Kendall, S.; Shipman, C.; Bradford, C.; Carey, T.; Haddad, A.; Moyer, J.; Peterson, L.; Prince, M.; Rozek, L.; Wolf, G.; Bowman, R.; Fong, K. M.; Yang, I.; Korst, R.; Rathmell, W. K.; Fantacone-Campbell, J. L.; Hooke, J. A.; Kovatich, A. J.; Shriver, C. D.; DiPersio, J.; Drake, B.; Govindan, R.; Heath, S.; Ley, T.; Van, Tine, B.; Westervelt, P.; Rubin, M. A.; Lee, J. I.; Aredes, N. D.; Mariamidze, A.; Van, Allen, E. M.; Cherniack, A. D.; Ciriello, G.; Sander, C.; Schultz, N.; The, Cancer, Genome, Atlas, Research, Network.tifGenetic alterations in signaling pathways that control cell-cycle progression, apoptosis, and cell growth are common hallmarks of cancer, but the extent, mechanisms, and co-occurrence of alterations in these pathways differ between individual tumors and tumor types. Using mutations, copy-number changes, mRNA expression, gene fusions and DNA methylation in 9,125 tumors profiled by The Cancer Genome Atlas (TCGA), we analyzed the mechanisms and patterns of somatic alterations in ten canonical pathways: cell cycle, Hippo, Myc, Notch, Nrf2, PI-3-Kinase/Akt, RTK-RAS, TGFβ signaling, p53 and β-catenin/Wnt. We charted the detailed landscape of pathway alterations in 33 cancer types, stratified into 64 subtypes, and identified patterns of co-occurrence and mutual exclusivity. Eighty-nine percent of tumors had at least one driver alteration in these pathways, and 57% percent of tumors had at least one alteration potentially targetable by currently available drugs. Thirty percent of tumors had multiple targetable alterations, indicating opportunities for combination therapy. An integrated analysis of genetic alterations in 10 signaling pathways in >9,000 tumors profiled by TCGA highlights significant representation of individual and co-occurring actionable alterations in these pathways, suggesting opportunities for targeted and combination therapies.Item Embargo Three channels of monetary policy international transmission: Identifying spillover effects from the US to China(Elsevier Inc., 2022-05-02) Zhang, M.; Şensoy, Ahmet; Cheng, F.; Zhao, X.We identify and compare three channels through which the adjustment of US monetary policy spills over into China, including trade, exchange rate, and financial channels. A proxy vector autoregression model, with a high-frequency identification strategy, is applied to measure the causal effect of monetary policy shocks to the fundamentals of China’s economy. The analysis reveals that tightness in US monetary policy increases inflation in China by 0.2% and drives down output by 1%. We also find that the spillover effect from the US to China is immediate and significant through each of the three channels. Furthermore, the financial channel is significant in terms of its effect on interest rate expectations and long-term financing premia for Chinese companies. Our results support the notion of the financial channel as a key transmission mechanism for cross-country spillovers of monetary policy, which should be of much interest to participants in financial markets.Item Embargo Unknown unknowns: knightian uncertainty andcorporate opportunistic earnings management(Wiley, 2024-01) Yao, S.; Xie, X.; Boubaker, S.; Şensoy, Ahmet; Cheng, F.Uncertainty is inherent in the real world. Faced with Knightian uncertainty caused by many extremeevents, this paper focuses on the analysis of corporate opportunistic earnings management behaviourunder the unknown unknowns framework. This paper finds that with an increase in market Knigh-tian uncertainty, corporations will significantly adopt both accrual earnings management and realearnings management. More importantly, when compared with upward earnings management, theresults indicate that Knightian uncertainty will lead corporations to implement more downward earn-ings management. Our results are consistent with the big bath theory, which is also verified throughthe adjustment of non-recurring profit and loss accounts. To understand the real process of earningsmanagement, we also discuss the strategic choice behaviour of earnings management under differentheterogeneous situations