To Pay or Be Paid? The Impact of Taker Fees and Order Flow Inducements on Trading Costs in U.S. Options Markets

2016 ◽  
Vol 51 (5) ◽  
pp. 1637-1662 ◽  
Author(s):  
Robert Battalio ◽  
Andriy Shkilko ◽  
Robert Van Ness
Keyword(s):  
Order Flow ◽  
Trading Costs ◽  
Options Markets ◽  
Prior Literature ◽  
Liquidity Cost ◽  
Liquidity Costs ◽  
The Impact

Consistent with prior literature, we find that average relative effective spreads are higher for venues that pay for order flow (PFOF) than for venues utilizing the maker-taker (MT) model. This relation becomes more nuanced when liquidity fees are incorporated into liquidity cost measures. For the majority of options, PFOF venues offer lower average liquidity costs net of taker fees. Net liquidity costs for the high-priced options, however, are lower for MT venues. Overall, our results suggest that the inclusion of fees and rebates can rationalize the routing of most, but not all, marketable orders to PFOF venues.

Does Wrongdoer Reputation Matter? Impact of Auditor-Wrongdoer Performance and Likeability Reputations on Fellow Auditors' Intention to Take Action and Choice of Reporting Outlet

2011 ◽  
Vol 23 (2) ◽  
pp. 207-234 ◽  
Author(s):  
Jesse C. Robertson ◽  
Chad M. Stefaniak ◽  
Mary B. Curtis
Keyword(s):  
Two Dimensions ◽  
Data Availability ◽  
Good Performer ◽  
Reporting Decisions ◽  
Prior Literature ◽  
Reporting Channel ◽  
Channel Preferences ◽  
Main Effects ◽  
The Impact ◽  
Selection Of

ABSTRACT We investigate the effects of auditor-wrongdoer reputations for performance and likeability on fellow auditors' intentions to take action in response to a questionable audit act. We also use this context to explore auditor selection of reporting outlets, when they do choose to take action. In an experiment with 181 auditors, main effects suggest that likeability reputation is a significant determinant of intention to take action, while performance reputation is marginally significant. As expected, interaction results indicate that auditors have the greatest intention to take action against less likeable, poor performers. Contrary to expectations, intention to take action against a more likeable, good performer is no lower than the mixed conditions. Thus, the influence of the two dimensions of reputation is complex. Additionally, we find auditors are more likely to whistle-blow internally than externally, and through non-anonymous outlets than anonymous outlets. Our contributions include exploring the impact of reputation on the actions of third parties, and advancing prior literature by considering the influence of wrongdoer attributes on reporting decisions and auditors' reporting channel preferences. Data Availability: Data are available from the first author upon request.

scholarly journals The Relationship of Sustainability Communication on Social Media with Banking Consumers’ Loyalty through e-WOM

2021 ◽  
Vol 13 (7) ◽  
pp. 3832
Author(s):  
Gao Wei ◽  
Wang Lin ◽  
Wu Yanxiong ◽  
Yan Jingdong ◽  
Sadik Yusuf Musse
Keyword(s):  
Social Media ◽  
Structural Equation ◽  
Positive Emotions ◽  
Banking Sector ◽  
Equation Modeling ◽  
Consumer Loyalty ◽  
Csr Communication ◽  
Prior Literature ◽  
Corporate Social ◽  
The Impact

Prior literature has largely addressed corporate social responsibility (CSR) from outcomes related to organizational themes. However, its importance for achieving consumer-related outcomes is something that has been largely ignored by contemporary researchers. Likewise, how CSR communication through social media can create positive emotions on the part of consumers has to date been under-explored. Hence, the present study aims to fill these gaps by investigating the impact of CSR communication of an organization through social media on consumer loyalty. The study also proposes electronic word of mouth (e-WOM) as a potential mediator between this relationship. The proposed model of the present study was tested in the banking sector of a developing country. The data were collected from a self-administered questionnaire and analyzed through the structural equation modeling technique (SEM). The results of the present study validated that CSR communication of a bank through social media directly and indirectly, through e-WOM, influences consumer loyalty in a positive manner. The results of the present study will be helpful for policymakers to better understand how well-planned CSR communication of an organization on social media can lead towards better consumer-related outcomes such as consumer loyalty and e-WOM.

The moderating effect of culture on the relationship between accountability and professional scepticism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Medhat Endrawes ◽  
Shane Leong ◽  
Kenan M. Matawie
Keyword(s):  
Cultural Values ◽  
Design Methodology ◽  
Middle Eastern ◽  
Cognitive Effort ◽  
Planning Stage ◽  
Content Type ◽  
Big 4 ◽  
Prior Literature ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine whether accountability and culture have an impact on auditors’ professional scepticism. It also examines whether culture moderates the effect of accountability on auditors’ professional scepticism. Design/methodology/approach Three of the Big 4 firms in Australia and Egypt participated in an audit judgement experiment, which required them to indicate their beliefs about the risk of fraud and error at the planning stage of a hypothetical audit and evaluate the truthfulness of explanations provided by the client management. The authors examined whether their professional scepticism was influenced by accountability. Findings The results indicate professional scepticism differs significantly between cultures in some situations. The fact that culture influences scepticism suggests that even when auditors use the same standards (such as ISA 240 and ISA 600), they are likely to be applied inconsistently, even within the same firm. The authors, therefore, recommend that international bodies issue additional guidance on cultural values and consider these cultural differences when designing or adopting auditing standards. Originality/value To the best of the authors’ knowledge, this is the first study that examines whether culture moderates the impact of accountability on auditors’ professional scepticism using Egyptian and Australian (Middle Eastern and Western) auditors. Prior literature suggests that individuals subject to accountability pressure increase their cognitive effort and vigilance to detect fraud and error. As the authors find evidence that culture moderates accountability pressure and as accountability affects scepticism, they add to the literature suggesting that culture can influence professional scepticism.

Reference Price and Its Asymmetric Effects on Price Evaluations: The Moderating Role of Gender

2017 ◽  
Vol 59 (2) ◽  
pp. 189-194 ◽  
Author(s):  
Choongbeom Choi ◽  
Sung Jun Joe ◽  
Anna S. Mattila
Keyword(s):  
Reference Price ◽  
Internal Reference ◽  
External Reference ◽  
Internal Reference Price ◽  
Scant Attention ◽  
Managerial Implications ◽  
Prior Literature ◽  
External Reference Price ◽  
Promotional Strategies ◽  
The Impact

Empirical research shows that customers form price evaluations by comparing the actual price with a reference price. The relative use of an internal reference price (IRP) versus an external reference price (ERP) is an important issue in the lodging industry due to the popularity of price-comparison–based advertising. Although prior literature shows that demographic factors influence the relative use of IRP and ERP, the impact of gender on the relationship between reference prices and price evaluations has received scant attention in both hospitality and marketing contexts. Drawing on the agency-communal theory, the current research examines the effect of gender on the use of IRP and ERP in price evaluations. The findings indicate that males are more susceptible to IRP than to ERP, whereas females are only influenced by ERP. Relevant managerial implications are drawn in terms of pricing and promotional strategies.

The Impact of World Religions on Conservatism

2020 ◽  
Vol 19 (2) ◽  
pp. 197-218
Author(s):  
Laura Swenson
Keyword(s):  
Social Norms ◽  
Financial Reporting ◽  
World Religions ◽  
Large Sample ◽  
The World ◽  
Prior Literature ◽  
Western Religion ◽  
The Impact ◽  
Jel Classifications

ABSTRACT This study examines the association between world religions and the earnings attribute of conservatism. I group the major world religions into two sub-groups, Western and Eastern. Prior literature documents that followers of Western religions have a lower preference for risk relative to followers of Eastern religions. Prior literature also finds a lower preference for risk is associated with more conservative reporting. Using a large sample of firms listed on exchanges around the world, I find earnings of firms domiciled in countries with larger Western religious presence are more conservative. The results hold after using an indicator for whether the predominant religion in the country is a Western religion, controlling for religiosity, and using a sample of U.S. foreign registrants that file a 20-F reconciliation with the SEC. My study contributes to our understanding of how social norms affect financial reporting. JEL Classifications: G14; G15; M41.

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