Tone of earnings announcements in sin industries

2019 ◽  
Vol 27 (2) ◽  
pp. 228-246 ◽  
Author(s):  
Yan Luo ◽  
Linying Zhou
Keyword(s):  
Design Methodology ◽  
Ethical Issues ◽  
Earnings Announcements ◽  
Ceo Power ◽  
Earnings Announcement ◽  
Content Type ◽  
Ceo Tenure ◽  
Social And Ethical Issues ◽  
Industry Membership ◽  
The Impact

Purpose The purpose of this paper is to investigate the empirical association between the tone of earnings announcements and a company’s membership in a sin industry. Design/methodology/approach This study constructs a model of the determinants of earnings announcement tone to examine the impact of sin industry membership on earnings announcement tone. An interaction term between CEO power (CEO–chairman duality) and sin industry membership is used to test whether CEO power moderates the strength of the association. The earnings announcements tone is measured using the spread in the proportion of positive and negative words. The category of sin industry includes not only industries such as tobacco, gambling and alcohol, but also industries associated with emerging environmental, social, and ethical issues (i.e. firearms, oil and cement). Findings The analysis of a sample of US firms from the 1994 to 2013 period shows that the tone of earnings announcement is less optimistic for companies in sin industries, but this association is weaker for companies that are led by powerful CEOs. The results remain robust to alternative definitions of sin industry membership and CEO power (CEO tenure) and to alternative model specifications. Originality/value The findings suggest that although sin companies cannot change the nature of their business, the management of such companies, in general, uses a less aggressive tone in their earnings announcements. These results further investors’ understanding of sin companies’ reporting behavior.

Effect of quarterly earnings announcement under different market conditions

2014 ◽  
Vol 6 (2) ◽  
pp. 128-154 ◽  
Author(s):  
Santu Das ◽  
Jamini Kanta Pattanayak ◽  
Pramod Pathak
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Earnings Announcements ◽  
Market Condition ◽  
Market Conditions ◽  
Price Movement ◽  
Earnings Announcement ◽  
Content Type ◽  
Quarterly Earnings ◽  
The Impact

Purpose – The main purpose of this research study is to investigate the impact of quarterly earnings announcements on stock price movement of the firms constituting the SENSEX under two different market conditions – booming followed by recessionary. Analysis of price effect of quarterly earnings announcements during the five-year period prior to trading suspension, which is also characterized by a booming market condition have been made. Similar analysis during the five-year period following the trading suspension and marked by recessionary market condition has also been carried out side by side. Design/methodology/approach – Event study methodology using daily returns and market model has been used for the purpose of analyzing the quarterly earnings announcement effects on the security prices of the firms. A sign test has also been used along with the event study. Findings – The study reveals that quarterly earnings announcement does not have statistically significant effect on stock returns during the booming as well as the recessionary market conditions. The impact of quarterly earnings announcements on stock price movement of firms constituting the SENSEX has been similar for both periods undertaken in the study. Research limitations/implications – The study has been undertaken using the firms listed in BSE SENSEX. The effect of the quarterly earnings announcement with reference to firms listed in other indices, if covered, may provide different sets of results. Originality/value – The paper identifies the informational value of quarterly earnings announcement of BSE-SENSEX.

Online investment forum and the market response around earnings announcement in the Chinese stock markets

2019 ◽  
Vol 27 (4) ◽  
pp. 615-631 ◽  
Author(s):  
Qian Hao ◽  
Dayong Dong ◽  
Keke Wu
Keyword(s):  
Linear Regression Analysis ◽  
Earnings Announcements ◽  
Positive Association ◽  
Online Discussions ◽  
Policy Implications ◽  
Internet Service ◽  
Earnings Announcement ◽  
Content Type ◽  
Earnings Surprise ◽  
The Impact

Purpose This paper aims to study the following two questions. Do earnings announcements stimulate investors to participate in online discussions? Does online investment forum participation affect the market’s reaction to earnings news? Design/methodology/approach The authors collect all the online posts, which were related to the internet service companies and posted in a Chinese financial forum, guba.eastmoney.com (Guba), during the period between June 30, 2008 and December 31, 2015. Multiple linear regression analysis is used to test the questions. Findings The study finds that the earnings announcements induce online discussion. In addition, before the earnings announcement, online posting activity does not affect earnings response coefficient but can weaken the positive association between the magnitude of the upcoming earnings surprise and abnormal trading volume. In contrast, after the earnings announcement, online forum participation can facilitate the incorporation of earnings surprise into the price. Originality/value This study contributes to the literature studying the impact of social media on market reaction to earnings news by providing evidence that the price discovery process can be affected by the online investment forum. Several policy implications are also provided.

Aggregate market attention around earnings announcements

2020 ◽  
Vol 28 (4) ◽  
pp. 591-617
Author(s):  
William M. Cready ◽  
Abdullah Kumas
Keyword(s):  
Earnings Announcements ◽  
Equity Market ◽  
Future Research ◽  
Activity Levels ◽  
Investor Attention ◽  
Earnings Announcement ◽  
Content Type ◽  
Market Participants ◽  
Pricing Efficiency ◽  
The Impact

PurposeThis analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants.Design/methodology/approachWe use multivariate regression approach and examine how trading activity levels within the set of non-announcing firms varies with respect to collective measures of contemporaneous earnings announcement visibility. We employ attention and information transfer theories in our hypothesis development.FindingsThis analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants. Specifically, we examine how the number of earnings announcement activity affects investor attention as measured by trading volume given to the set of non-announcing firms. We find that while earnings announcement numbers lower trading volume responses to earnings news among announcing firms (consistent with Hirshleifer et al., 2009), their distractive influence does not carry over into the market as a whole. More importantly, investor attention to both the overall market and the larger subset of non-announcing firms increase in response to earnings news activity levels. However, after decomposing the announcers as same-industry and different-industry announcers, we find that investor attention to the non-announcing segment of the market increases with the number of same-industry announcers, but actually seems to decrease (i.e. they distract attention) with the number of different-industry announcers. We also find that the associated earnings surprise brings attention to non-announcing firms (consistent with earnings news is relevant to overall market price movements). Finally, we find that distraction effects are attenuated in the financial crisis period.Research limitations/implicationsA promising area of future research is to examine the relation between market pricing efficiency and aggregate earnings activity for the set of non-announcing firms. Although it will be a challenging task to measure pricing efficiency for the non-announcers, this will complement the prior literature only focusing on the announcing segment of the market.Practical implicationsFirst, instead of assessing the impact of number of earnings announcements on the subset of announcing firms, which is a micro-level perspective, we identify the impact of news arrivals on all firms in the market including the vastly larger set of non-announcing firms. Second, by decomposing the number of announcements into industry-related and -unrelated news we show that different types of news arrivals spark investor attention differently, suggesting the importance of categorizing the news into related and unrelated industries.Social implicationsA potential future area of research identified by our analysis is to investigate what type of investors' attention is distracted or attracted during the earnings announcements. A promising area of future research is to examine the relation between market pricing efficiency and aggregate earnings activity for the set of non-announcing firms.Originality/valueThis paper is the first one exploring the overall roles of the offsetting attraction and distraction influences of earnings announcements in shaping the level of investor attention given to the equity market by market participants. Our findings should be of interest to investors, analysts, security market regulators and researchers.

scholarly journals Planning an accessible expo 2020 within Dubai’s 5 star hotel industry from legal and ethical perspectives

2016 ◽  
Vol 2 (1) ◽  
pp. 88-94 ◽  
Author(s):  
Stephanie Morris ◽  
Scolah Kazi
Keyword(s):  
United Arab Emirates ◽  
Design Methodology ◽  
Ethical Issues ◽  
Hotel Industry ◽  
People With Disabilities ◽  
Legal Framework ◽  
Content Type ◽  
Regulatory Scheme ◽  
The Impact ◽  
Legal And Ethical Issues

Purpose The purpose of this paper is to provide an understanding of the accessibility laws currently in effect in the United Arab Emirates and, specifically, Dubai. Further, it recommends methods of integrating accessible hospitality and tourism in Dubai with core legal and ethical direction in preparation for EXPO 2020. Design/methodology/approach Review of current legislation and analysis of interpretation by industry providers was used to illustrate the impact on the current accessibility environment in Dubai and to recommend a revised regulatory scheme. Findings The paper explains how legal and ethical issues have influenced the planning and building of 5 star hotels in Dubai, and offers recommendations for amendments and additions to the region’s current laws that address needs of people with disabilities (PwD). Originality/value Little research has been conducted in the region concerning the rights and needs of PwD. The paper significantly contributes by demonstrating how an ethical and legal framework will address the needs of PwD thereby aiding in Dubai’s successful hosting of EXPO 2020. This contribution is notably opportune in view of the anticipated changes in applicable legislation.

scholarly journals Managerial ability, tone of earnings announcements, and market reaction

2017 ◽  
Vol 25 (4) ◽  
pp. 454-471 ◽  
Author(s):  
Yan Luo ◽  
Linying Zhou
Keyword(s):  
Significant Role ◽  
Stock Price ◽  
Design Methodology ◽  
Earnings Announcements ◽  
Management Teams ◽  
Market Response ◽  
Managerial Ability ◽  
Earnings Announcement ◽  
Content Type ◽  
Stock Price Reaction

Purpose The purpose of this paper is to examine the effect of managerial ability on the tone of earnings announcements and on the market response to the tone. Design/methodology/approach This study constructs a model of the determinants of earnings announcement tone in order to examine whether managerial ability plays a significant role in determining earnings announcement tone. Further, to test whether the market response to the tone of earnings announcements is affected by managerial ability, this study also examines the interactive term between earnings announcement tone and managerial ability. The tone of earnings announcements is measured using the spread in the proportion of positive and negative words. Managerial ability is measured using the managerial ability rank developed by Demerjian et al. (2012). Findings More able management teams use a more positive tone in their earnings announcements. Stock markets have more pronounced positive reactions to positive tones in the earnings announcements issued by companies with more able management teams. Originality/value This study identifies managerial ability as a previously unrecognized determinant of tone in earnings announcements and of the stock price reaction to earnings announcements.

CEO power and corporate social responsibility

2019 ◽  
Vol 34 (2) ◽  
pp. 93-115 ◽  
Author(s):  
Joel Harper ◽  
Li Sun
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Design Methodology ◽  
Research Question ◽  
Chief Executive ◽  
Ceo Power ◽  
Content Type ◽  
Stakeholder Groups ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of chief executive officer (CEO) power on corporate social responsibility (CSR) performance. Design/methodology/approach The authors use regression analysis to investigate the research question. Findings Using a 23-year panel sample with 1,574 unique US firms and 8,575 firm-year observations, the authors find a significant and negative relation between CEO power and CSR, suggesting that firms with more powerful CEOs engage in less CSR activities. Originality/value The results reveal that more powerful CEOs become less responsive to the needs of stakeholder groups, confirming the validity of the stakeholder theory of CSR.

The impact of DNA on criminal investigation

2016 ◽  
Vol 7 (3) ◽  
pp. 105-108
Author(s):  
Colin Dale
Keyword(s):  
Criminal Justice ◽  
Criminal Justice System ◽  
Justice System ◽  
Design Methodology ◽  
Ethical Issues ◽  
Dna Profiling ◽  
Content Type ◽  
First Case ◽  
The Impact

Purpose The purpose of this paper is to describe the discovery of the application of DNA profiling to the criminal justice system. Design/methodology/approach Researching the origins of the discovery of the application of DNA to the criminal justice system via an analysis of the first case in which it was applied to. Findings It was discovered that the first application of DNA profiling to the criminal justice system meant that a young man with intellectual disabilities was saved from wrongful prosecution. The case study also raises ethical issues concerning the mass screening of targeted populations by way of DNA. Originality/value The case study is descriptive in nature and draws from earlier work describing the events which unfolded.

Is some CSR just CEOs’ selfishness?

2017 ◽  
Vol 33 (4) ◽  
pp. 10-12
Keyword(s):  
Corporate Social Responsibility ◽  
Design Methodology ◽  
Reading Time ◽  
Ceo Power ◽  
Content Type ◽  
Ceo Tenure ◽  
Ceo Pay ◽  
Pertinent Information ◽  
Corporate Social ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Using CEO pay slice, CEO tenure and CEO duality to measure CEO power, the authors show that CEO power is negatively correlated with firm’s choice to engage in corporate social responsibility (CSR) and with the level of CSR activities in the firm. Furthermore, the results suggest that CSR activities are in fact value enhancing in that as firms engage in more CSR activities, their value increases. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The effects of materialism on consumer evaluation of sustainable synthetic (lab-grown) products

2020 ◽  
Vol 37 (5) ◽  
pp. 579-590
Author(s):  
Jessica Keech ◽  
Maureen Morrin ◽  
Jeffrey Steven Podoshen
Keyword(s):  
Design Methodology ◽  
Socially Responsible ◽  
Content Type ◽  
Consumer Evaluation ◽  
Positioning Strategy ◽  
Consumer Markets ◽  
The Future ◽  
Promotion Strategies ◽  
Alternative Sources ◽  
The Impact

Purpose The increasing desire of consumers for socially responsible luxury products combined with fluctuating supplies in consumer markets are leading various industries to seek alternative sources to be able to meet the needs of its customers. One possible solution that may meet the demands of the future is lab-grown products. Because these products confer multiple benefits, this study aims to investigate the most effective ways to appeal to consumers by aligning the benefits of the products with their values as marketers seek to find effective promotion for these items. Design/methodology/approach We examine the effectiveness of an ethical positioning strategy for two types of luxury lab-grown (synthetic) products among high versus low materialism consumers in three experiments. Findings Findings suggest that a positioning strategy stressing product ethicality is more effective for low materialism consumers, whereas the strategy is less effective, and may even backfire, for high materialism consumers. The impact on social status consumers perceive from a lab-grown product explains why this effect occurs among low materialism consumers. Therefore, marketers should take caution and use specific appeals for different segments based on values such as consumers’ materialism levels. Originality/value If lab-grown products represent the wave of the future, it is important to understand how consumers will respond to this emerging technology and how promotion strategies may enhance their evaluation.

Embedding employability within higher education for the profession of policing

2019 ◽  
Vol 9 (3) ◽  
pp. 319-328
Author(s):  
Ian Pepper ◽  
Ruth McGrath
Keyword(s):  
Higher Education ◽  
Design Methodology ◽  
Research Study ◽  
Longitudinal Research ◽  
Evidence Base ◽  
Content Type ◽  
Educational Provision ◽  
Professional Body ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate the impact of an employability module, the College of Policing Certificate in Knowledge of Policing (CKP), on students’ career aspirations, their confidence and wish to join the police along with the appropriateness of the module. This will inform the implementation of employability as part of the College of Policing-managed Police Education Qualifications Framework (PEQF). Design/methodology/approach A three-year longitudinal research study used mixed methods across four points in time to evaluate the impact on students studying the employability module. Findings The research suggests that the employability-focussed CKP was useful as an introduction to policing, it developed interest in the police and enhanced the confidence of learners applying to join. Lessons learnt from the CKP should be considered during the implementation of the PEQF. Research limitations/implications The ability to generalise findings across different groups is limited as other influences may impact on a learner’s confidence and employability. However, the implications for the PEQF curriculum are worthy of consideration. Practical implications As the police service moves towards standardised higher educational provision and evolution of policing as a profession, lessons can be learnt from the CKP with regards to the future employability of graduates. Originality/value Enhancing the employability evidence base, focussing on policing, the research identified aspects which may impact on graduates completing a degree mapped to the PEQF. The research is therefore of value to higher education and the professional body for policing.

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