This paper examines how Chinese firms use WeChat for voluntary disclosure. Using a topic model, we classify over 1.6 million WeChat articles into two categories: “relevant” and “noise” articles. We find that on days when firms publish value-relevant articles, there is a significant increase in abnormal returns and stock liquidity. Further analyses reveal that WeChat serves as an alternative disclosure channel for providing new information. Firms also use WeChat to complement mandatory disclosure. However, we find that firms with negative earnings tend to issue more noise articles around earnings announcements. These noise articles are associated with higher short-term announcement returns in cases of significantly negative earnings events. These results suggest that firms may engage in opportunistic WeChat disclosure behavior. Collectively, our study highlights the significant role of WeChat in the voluntary disclosure practices of Chinese companies.

This paper investigates the effect of the “First Financial Restructuring” (FFR) on the operating efficiency of commercial banks in Taiwan. Applying data envelopment analysis (DEA) to operations data for 40 commercial banks over the 6-year period 2000–2005, we find that while the banks have lower operating efficiency on average during the reform period (2002–2003) compared to the pre-reform period (2000–2001), improved operating efficiency is reflected in the post-reform period (2004–2005). Our results remain unchanged even after controlling for the non-performing loan ratio, capital adequacy ratio, bank ownership, size, and GDP growth rate. These results suggest that the improved efficiency in the post-reform period is possibly due to enhanced banking and risk management practices and benefits obtained from compliance with the FFR.

ABSTRACT In a tax—public goods reciprocity framework between citizens and the state, managers view taxes as a payment to the government in exchange for public goods, and hence they adjust their willingness to pay taxes as public good quality changes. We show that corporate tax planning intensity increases with ground‐level ozone pollution. Revisions in ozone pollution regulations cause counties that failed the revised and more stringent standards to reduce ozone pollution. Consequently, firms headquartered in these counties reduced corporate tax planning intensity relative to firms in other counties. The ozone‐tax link varies in the predicted directions with public attention to pollution, potential welfare loss due to ozone, managers’ stakeholder orientation, taxpayers’ polluting status, political preferences, and civic norms. We also find consistent results for Superfund cleanups of hazardous waste sites. Our research sheds light on reciprocity as a potential mechanism influencing corporate tax compliance.