Firm websites and the risk of firm

2015 ◽  
Vol 115 (3) ◽  
pp. 504-520 ◽  
Author(s):  
Yu-Tai Chien ◽  
Hsin-Min Lu
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Information Disclosure ◽  
Web Site ◽  
Risk Measures ◽  
Cross Sectional Study ◽  
Firm Risk ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose – Websites have become an important channel for firms to communicate with their stakeholders. Higher web site traffic could represent effective information disclosure and higher investor recognition. Both may reduce the risk of firm by reducing the level of information asymmetry and facilitating a more complete market by reaching to more potential investors. The purpose of this paper is to investigate the impact of firm web site traffic to the risk of firm. Design/methodology/approach – The authors conducted a cross-sectional study on the risk and firm web site traffic data of 4,122 US public firms. Findings – After controlling for confounding factors, web site traffic is significantly negatively associated with three firm risk measures: cost of equity, return volatility, and analyst forecast dispersion. Originality/value – The results provide new insights to the economic impact of web site traffic. Compared with previous studies that mostly investigated the relationships between web site traffic and firm performance measured by stock returns or company profitability, the authors documented empirical evidence that web site traffic influences the risk of firm through the level of information asymmetry and investor recognition. This paper suggests that when valuing a firm, investors would take web site traffic into consideration. Firm managers could use firm Websites as a channel to reduce information asymmetry, and increase investor recognition that can contribute to the firm’s value through reduced risk.

Regulation and information asymmetry

2008 ◽  
Vol 16 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Robyn McLaughlin ◽  
Assem Safieddine
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Operating Performance ◽  
Cost Benefit ◽  
Future Research ◽  
Information Asymmetries ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Content Type ◽  
Regulated Utilities

PurposeThis paper seeks to examine the potential for regulation to reduce information asymmetries between firm insiders and outside investors.Design/methodology/approachExtensive prior research has established that there are substantial effects of information asymmetry in seasoned equity offers (SEOs). The paper tests for a mitigating effect of regulation on such information asymmetries by examining differences in long‐run operating performance, changes in that performance, and announcement‐period stock returns between unregulated industrial firms and regulated utilities that issue seasoned equity. The authors also segment the samples by firm size, since smaller firms are likely to have greater asymmetries.FindingsConsistent with regulated utility firms having lower levels of information asymmetry, they have superior changes in abnormal operating performance than industrial firms pre‐ to post‐issue and their announcement period returns are significantly less negative. These findings are most pronounced for the smallest firms, firms likely to have the greatest information asymmetries and where regulation could have its greatest effect.Research limitations/implicationsThe paper does not examine costs of regulation. Thus, future research could seek to measure the cost/benefit trade‐off of regulation in reducing information asymmetry. Also, future research could examine cross‐sectional differences between different industries and regulated utilities.Practical implicationsRegulation reduces information asymmetry. Thus, regulation or mandated disclosure may be appropriate in industries/markets where information asymmetry is severe.Originality/valueThis paper is the first to compare the operating performance of regulated and unregulated SEO firms.

Foundational competencies for enhancing work engagement in SMEs Malaysia

2017 ◽  
Vol 29 (3) ◽  
pp. 165-184 ◽  
Author(s):  
Aliyu Yelwa Haruna ◽  
Govindan Marthandan
Keyword(s):  
Work Engagement ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Cross Sectional Study ◽  
Research Approach ◽  
Positive Role ◽  
Cross Sectional ◽  
Content Type ◽  
Additional Support ◽  
The Impact

Purpose This study aims to examine the impact of foundational competencies on work engagement in the context of the Malaysian small and medium enterprises (SMEs) service sector. Design/methodology/approach This is a cross-sectional study conducted in Malaysia, and data were gathered via a survey on 312 employees representing SMEs service sectors. Partial least squares techniques were used in testing the hypothesized linkages. Findings The findings indicated that foundational competencies have a significant positive effect on work engagement. Research limitations/implications Considering the research approach, generalizing the findings of this study must be done with caution. Longitudinal data are recommended, as these could provide additional support to the results. Further studies can as well extend the framework by testing whether job resources play a positive role in enhancing the relationship between foundational competencies and work engagement in Malaysia. Practical implications The findings suggest that foundational competencies positively relate to work engagement. Therefore, training and coaching sessions could be organized by managers/policy makers to enhance these competencies, which will strengthen work engagement and career development of the employee; it may specifically be very helpful for fresh graduates whose careers would have just started. Originality/value To the authors’ knowledge, this is the first attempt to examine the effect of American Society of Training and Development foundational competencies on work engagement in SMEs in Malaysia.

Does negative information in MD&A can reduce stock crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianmai Liu
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Information ◽  
Bad News ◽  
Practical Significance ◽  
Crash Risk ◽  
Content Type ◽  
The Impact

Purpose As an important part of the disclosure of listed companies' annual reports, MD&A will disclose some "bad news" about the company. The purpose of this paper is to study whether such "bad news" can reduce information asymmetry and alleviate the risk of stock price crash remains to be seen. Design/methodology/approach Based on the sample of A-share listed companies from 2007 to 2016, the authors examine whether the negative information in MD&A could reduce stock price crash risk. Findings It is found that the negative information in MD&A does not reduce future crash, which indicates that the negative information in MD&A does not alleviate the information asymmetry. Further, it is also found this is due to the low readability of negative information which leads to the negative information not successfully released into the market timely. Only highly readable negative information can alleviate information asymmetry and suppress crash risk. In addition, the authors also find in the companies with more investor surveys negative tone is negatively correlated with crash risk, which means that investor surveys could help investors interpret the negative information in MD&A and alleviate stock price crash risk. Practical implications The practical significance of this article: this paper suggests that investors should carefully identify the quality of negative information in MD&A and pay attention to other quality characteristics besides credibility. This paper suggests that the regulator should pay attention not only to whether to disclose and the amount of disclosure but also to the quality of information disclosure, such as readability, so as to restrict management's strategic behavior in information disclosure. Originality/value First, different from previous studies on the impact of information disclosure on crash risk, this paper directly explores the impact of information in MD&A on stock price crash risk from the perspective of negative information disclosure that management most want to hide. It supplements the literature on the impact of information disclosure on stock price crash risk. Second, this paper studies the interaction between information tone and readability and its impact on the risk of stock price crash. Some studies believe that the credibility of negative news is higher and investors' reaction may be stronger. However, this paper finds that the disclosure of negative information may not be absorbed by the market because of the low readability. Third, this paper finds that investor surveys can help information users to interpret negative information and alleviate the risk of stock price crash, which shows that information disclosure of different channels will complement each other and improve information efficiency. Therefore, it advocates different information disclosure channels which has important practical significance for improving market pricing efficiency and reducing investment decision-making risk.

scholarly journals Women's birth beliefs and associated factors in an obstetrics clinic in the Southeastern Anatolian Region of Turkey

2020 ◽  
Vol 34 (4) ◽  
pp. 345-351
Author(s):  
Figen Alp Yilmaz ◽  
Yeter Durgun Ozan
Keyword(s):  
Associated Factors ◽  
Cross Sectional Study ◽  
University Hospital ◽  
Healthcare Personnel ◽  
Delivery Mode ◽  
Cross Sectional ◽  
Content Type ◽  
Pregnancy And Delivery ◽  
Consultation Services ◽  
The Impact

PurposeThe impact of birth beliefs on pregnancy and delivery are universally recognized, but the factors that affect birth beliefs vary across regions depending on individual and cultural characteristics. This study aimed to determine women's birth beliefs and examine their associated factors.Design/methodology/approachThis cross-sectional study was conducted with 548 primiparas in the obstetrics clinic of a university hospital located in the Southeastern Anatolian Region of Turkey from February to June 2019. Descriptive characteristics, form and the Birth Beliefs Scale were used in data collection. To analyze the data, descriptive statistics, T-tests and ANOVA analyses were used.FindingsIt was determined that factors such as age group, income level, any problems during pregnancy and preferred delivery mode statistically affected women's birth beliefs.Originality/valueBased on the findings from this study, healthcare personnel should provide training and consultation services to pregnant women starting from the prenatal period to help ensure a positive labor experience.

Social enterprises and organizational learning in South Africa

2018 ◽  
Vol 10 (1) ◽  
pp. 117-133 ◽  
Author(s):  
Boris Urban ◽  
Elena Gaffurini
Keyword(s):  
South Africa ◽  
Organizational Learning ◽  
Social Innovation ◽  
Emerging Market ◽  
Cross Sectional Study ◽  
Social Enterprises ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to determine the relationship between different dimensions of organizational learning capabilities (OLC) and levels of social innovation in social enterprises. Design/methodology/approach The empirical strategy adopted is a cross-sectional study based on primary survey data. Following a survey of social enterprises in South Africa, statistically analysis is conducted using regression analyses to test the study hypotheses. Findings The findings show that the OLC dimensions of knowledge conversion, risk management, organizational dialogue and participative decision-making all have a significant and positive relationship with social innovation. Research limitations/implications In many emerging economies, the notion of organizational learning appears to have considerable potential relevance, particularly as African countries are moving toward knowledge-based economies. By focusing on OLC, it is anticipated that social enterprises can configure and leverage the different factors in ways that enable them to overcome the constraints of the complex and unpredictable environments and increase their levels of social innovation. Originality/value The paper provides a pioneering empirical investigation into the impact that OLC has on levels of social innovation, in an under-researched emerging market context.

scholarly journals Resiliency and mental health of school teachers in Okinawa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul Ratanasiripong ◽  
Takashi China ◽  
Nop T Ratanasiripong ◽  
Shiho Toyama
Keyword(s):  
Mental Health ◽  
Demographic Data ◽  
Self Esteem ◽  
Cross Sectional Study ◽  
Teaching Profession ◽  
Regression Analyses ◽  
School Teachers ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to describe the mental health issues among teachers globally and to investigate the significant factors that specifically impact the mental health of school teachers in Okinawa, Japan.Design/methodology/approachThis cross-sectional study examined depression, anxiety, stress, self-esteem and resiliency among 174 teachers from seven schools in Okinawa, Japan. The study questionnaire consisted of four parts, including demographic data, Depression, Anxiety, and Stress scale (DASS-42), Rosenberg Self-Esteem Scale (RSE), and Connor-Davidson Resiliency Scale (CD-RISC). Multiple regression analyses were performed to identify predictors of mental health variables.FindingsOf the 174 teachers, 111 were females (64%) and 60 were males (35%). Average age of participants was 41.65 (SD = 10.07). Average number of years being a teacher was 15.50 (SD = 9.88). There was a significant gender difference in the level of self-esteem. Significant differences in anxiety were found among varying grade levels taught. Regression analyses indicated that resiliency and self-esteem significantly predicted depression, anxiety and stress among school teachers in Okinawa.Originality/valueThis is the first study among school teachers in Okinawa that examined the impact of resiliency and self-esteem on their mental health. To reduce psychological distress common within the teaching profession, social and environmental support should be provided within the school to better foster the successful promotion of teacher resiliency and self-esteem.

Impact of knowledge sharing, learning adaptability and organizational commitment on absorptive capacity in pharmaceutical firms based in Pakistan

2018 ◽  
Vol 22 (1) ◽  
pp. 44-56 ◽  
Author(s):  
Muhammad Rafique ◽  
Shafqat Hameed ◽  
Mujtaba Hassan Agha
Keyword(s):  
Organizational Commitment ◽  
Absorptive Capacity ◽  
Middle Managers ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Knowledge Process ◽  
Content Type ◽  
Independent Variables ◽  
Pharmaceutical Firms ◽  
The Impact

Purpose Absorptive capacity being an emerging field of research has been studied in different perspectives both in technological aspects and soft issues. Although an original study of absorptive capacity placed employees as playing pivoting role in the development of absorptive capacity (Cohen and Levinthal, 1990), unfortunately, there are limited studies on behavior of employees toward this emerging construct. This study aims to explore the impact of employees’ behavior in the development of absorptive capacity. Specifically, impact of knowledge sharing, learning adaptability and organizational commitment on absorptive capacity has been evaluated in this study. Design/methodology/approach This cross-sectional study was conducted at the pharmaceutical firms of Pakistan. The data were collected through random sampling from middle managers as a unit of analysis of this study. The rationale of the unit of analysis is that the maximum information is handled/accessed by the middle managers in the perspective of Pakistan. The data were collected from 170 respondents on a five-point Likert scale with the response rate of 66.7 per cent. Data were collected from different genders and different age groups with different qualification levels. Findings All independent variables showed significant positive correlations with overall absorptive capacity (ACAP). At the same time, different relationships of all independent variables were found in different ways with different significant levels. The results showed that different strategies may be adopted to manage the external knowledge for competition in turbulent environment. For example, organizational commitment may be incorporated at strategy formulation only, whereas the Adaptability at both routine and strategy formulation stage. As all independent variables showed no correlation with Acquisition it is concluded that Acquisition is purely a routine function, and instead of coordination, the routine processes must be emphasized. Research limitations/implications This study focused on the data from the middle managers of the pharmaceutical firms only. The results may not be generalized to the sectors. Another limitation is that the respondents of the study were middle managers. It was made intentional to see the impact of management aspects other than organizational mechanisms, as discussed by Cohen and Levinthal (1990) and Jansen et al. (2005) in their studies. The results on the basis of the data collected from other entities of the organization may differ. This is a cross-sectional study, and a longitudinal study may give different results. Practical implications Absorptive capacity has the capability to absorb new knowledge and plays an important role in the development of organizational processes to compete in the turbulent environment. It is dependent not only on technological infrastructure but also on the employees’ behaviors and attitudes. This study gives insights about the knowledge process activities and employment of human resource at each phase of absorptive capacity in relation to their behaviors toward knowledge process. Social implications Development of organizational process with knowledge management plays an important role in the capacity building, which ultimately enhances social paradigm of activities. Originality/value Pharmaceutical companies in Pakistan acquire technologies from foreign countries and have very limited research and development of their own. As technology is upgraded by the foreign companies as a continuous improvement process, local firms of Pakistan are required to absorb the new knowledge with the same pace. The study highlights importance of human capital in the development of this capability.

Comparing health status, disability, and access to care in older and younger inmates in the New South Wales corrections system

2019 ◽  
Vol 15 (2) ◽  
pp. 153-161
Author(s):  
Courtney Field ◽  
Vicki Archer
Keyword(s):  
Access To Care ◽  
New South ◽  
New South Wales ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Content Type ◽  
South Wales ◽  
Aging Prisoners ◽  
Older Inmates ◽  
The Impact

Purpose The purpose of this paper is to compare the rates of chronic illness, disability and access to care between older and younger inmates who took part in a large epidemiological study in New South Wales, Australia. Design/methodology/approach Data are presented from a cross-sectional study based on a sample of inmates from correctional sites in NSW. The inclusion of results here was guided by the literature with regard to their relevance to older people, and older inmates in particular. Findings Results indicate that a higher proportion of older inmates suffer a range of chronic illnesses, with prevalence often many times higher than that of younger inmates. Older inmates are more likely to be classified as disabled and have a disability which impacts their mobility. Older inmates also reported accessing medical services in prison more recently than younger inmates and were more likely to have seen both nurses and general practitioners. Practical implications Older inmates appear to be considerably more resource intensive than younger inmates. The increasing proportion of inmates who are classified as older thus poses a pressing challenge to those working in the carceral space and, in particular, those responsible for providing healthcare to incarcerated people. Originality/value The impact of aging prisoners on resource demand has yet to be effectively measured. This study provides an important first step towards that goal.

Short- and long-term effects of responsible investment growth on equity returns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yann Ferrat ◽  
Frédéric Daty ◽  
Radu Burlacu
Keyword(s):  
Stock Returns ◽  
Equity Returns ◽  
Investment Horizon ◽  
Long Term Effects ◽  
Cross Sectional ◽  
Content Type ◽  
Responsible Investment ◽  
Short Run ◽  
Investment Growth ◽  
The Impact

PurposeThe growth of socially responsible assets has been exponential over the last decade, they now account for almost a third of professional investments. As the growth persists, faith and conviction investors reshape the equity markets. To fully comprehend the impact of socially conscious participants on security returns, this paper attempts to provide insights on how responsible investment growth has impacted the returns of sustainable stocks. The examination is split by investment horizon to account for short and long effects.Design/methodology/approachUsing an exclusive dataset of non-financial ratings, provided by MSCI ESG research, the authors examine the cross-sectional returns of US and European sustainability-leading and lagging corporations between 2007 and 2019. Panel models robust to country, firm-year and industry effects were then employed to examine the impact of responsible investment growth on future stock returns.FindingsThe authors find evidence that the impact of responsible investment growth is dual contingent upon the timeframe considered. In the short run, sustainability-leading and lagging firms display similar stock returns. However, the spread in returns is negative over long horizons and increasing over time.Originality/valueThe examination performed in this study highlights the significant effect of responsible investment growth on future stock returns. Overall, the authors’ findings are consistent with the price pressure hypothesis in the short run and the cost of capital alteration over longer horizons.

Relative efficiency, industry concentration and average stock returns

2019 ◽  
Vol 36 (1) ◽  
pp. 63-82 ◽  
Author(s):  
Giao X. Nguyen ◽  
Wikrom Prombutr ◽  
Chanwit Phengpis ◽  
Peggy E. Swanson
Keyword(s):  
Stock Returns ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Industry Concentration ◽  
Cross Sectional ◽  
Firm Efficiency ◽  
Content Type ◽  
Profit Margins ◽  
Market Shares ◽  
The Impact

Purpose Previous research has found that industry concentration and firm efficiency affect stock returns. However, it is not clear if concentration is a byproduct of efficiency and hence its effect on stock returns is driven by efficiency. This paper aims to examine the relationships between industry concentration, firm efficiency and average stock returns. Mainly, it aims to answer if the effects of industry concentration and firm efficiency on stock returns are independent and significant. Design/methodology/approach The stochastic frontier approach is used to estimate firm efficiency. The Herfindahl index is used to measure industry concentration. Regression and vector autoregressive analyses are performed to examine cross-sectional and lagged relationships between concentration, efficiency, profitability and stock returns. The characteristics-based benchmark approach is also used to investigate performance of test portfolios. Findings Industry concentration and firm efficiency have independent and significant effects on average stock returns through profit margins and market shares, which are related to firms’ profitability. Industry concentration has a greater positive impact on market shares than on profit margins, whereas firm efficiency has a greater positive impact on profit margins than on market shares. In sum, highly efficient firms in highly concentrated markets have lower distress risks and hence provide lower average stock returns. Originality/value The paper shows the linkages between industry concentration, firm efficiency, profitability and stock returns that have not been documented together in prior studies. Businesses can better understand the impact of concentration and efficiency on market shares and profit margins. Researchers may consider incorporating concentration and efficiency, both of which are meaningful microeconomic variables, into an asset pricing model. Investors can enhance their returns by having a zero-cost portfolio with long and short positions in stocks of firms with different levels of concentration and efficiency.

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