The influence of narrative disclosure readability, information ordering and graphical representations on non-professional investors' judgment: evidence from an emerging market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dalia Hussein El-Sayed ◽  
Eman Adel ◽  
Omar Elmougy ◽  
Nadeen Fawzy ◽  
Nada Hatem ◽  
...  
Keyword(s):  
Impression Management ◽  
Undergraduate Students ◽  
Emerging Market ◽  
Recency Effect ◽  
Graphical Representations ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Content Type ◽  
Future Performance ◽  
Information Order

PurposeThis study examines whether manipulation in attributes of corporate narrative disclosures and the use of graphical representations can bias non-professional investors' judgment towards firms' future performance, in an emerging market context.Design/methodology/approachThe authors conduct three different experiments with a 2 × 2 between-subjects design, using accounting and finance senior undergraduate students to proxy for the non-professional investors.FindingsResults show that simple (more readable) disclosures improve non-professional investors' judgment towards firms' future performance. In addition, it is found that non-professional investors are prone to a recency effect from the intentional ordering of narrative information, when using complex (less readable) narratives. However, no primacy effect is found, when using simple (more readable) disclosures. The results further provide evidence that the inclusion of graphical representations, along with the manipulated narrative disclosures, can moderate the recency effect of information order, when using less readable and complex narrative disclosures.Research limitations/implicationsThe results reveal that although the content of corporate disclosures can be objective, neutral and relevant, manipulation in textual features and the use of graphical presentations, can interact to impact how non-professional investors perceive and process the disclosed information. This study provides an Egyptian evidence regarding this issue, as the majority of prior studies concentrate on developed capital markets. In addition, it contributes to prior studies evaluating the appropriateness of the Belief Adjustment Model predictions about the effect of textual presentation order on decision-making, by providing evidence from an emerging market.Practical implicationsResults attempt to increase the awareness of investors and encourage them to use multiple sources of information to avoid the probable bias that can result from management's manipulation of narratives. In addition, the study could be of interest to regulators and standard-setters, where the results reveal the need for guidelines and regulations to guide the disclosure of narrative information and the use of graphical information in corporate reports.Originality/valueTo the best of the authors' knowledge, this is the first study to examine the effect of two impression management strategies in narrative disclosures (readability and information order), along with the use of graphical representations, on non-professional investors' judgment in an emerging market, like Egypt.

How emergent strategy influences institution: a qualitative study of a private firm in China

2017 ◽  
Vol 11 (2) ◽  
pp. 303-321 ◽  
Author(s):  
Jing Zhao ◽  
Ming Wang ◽  
LiMin Zhu
Keyword(s):  
Qualitative Study ◽  
Emerging Market ◽  
Private Firm ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Institutional Work ◽  
Content Type ◽  
Strategic Resources ◽  
Emergent Strategy ◽  
Focal Firm

Purpose Institutional work mainly focused on the purposive action of rational actors. However, the evolution of institution is not only affected by deliberate actions but also by emergent strategic patterns. Through a qualitative study of emergent aggression strategy in a Chinese leading private firm, Gome, this paper aims to explore the role of emergent strategy in institutional work. The paper finds that emergent strategy influences the normative and cognitive institution unconsciously and offers actors specialized identities. The present analysis also suggests that the emergent strategy-based institution needs a supporting and repairing system for maintenance. Design/methodology/approach This study primarily considers the micro aspect of emergent strategy and institutional work. It calls for detailed observation, interviews and archival materials which can make up a comprehensive in-depth picture. The authors remain skeptical to what people claim and try to get multiple sources of information. Also, the topic the authors deal with is relatively under-researched, and it is valuable to get explorative richness. Therefore, an interpretive qualitative approach is adopted to investigate actual events from “the native’s” perspective. Findings We found that an emergent strategy, which is realized but without previous plans, can also construct a “proto-type institution”, only in an unconscious way. The precondition is that the strategic resources of the focal firm are abundant enough for it to set the criteria of inter-organizational sanctions and rewards. In addition, the authors believe that supportive system and repairing system underpin the maintenance of established institutions. Originality/value First, by combining the research on emergent strategy to institutional work, the authors extend the scope of the latter by adding unconscious institutional work. Even if the agent-based view is adopted, rational actors can still influence the institution. Second, the authors explored the institutional outcome of emergent strategy, which fills the paucity of strategy process research. Third, aggression, the specific emergent strategy in this paper, can be turned into “plans for the future”. Its prevalence in the emerging market will attract more academic attention.

Strategic merge: a gain or a gamble – the case of Telco China

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Wing Sun Li
Keyword(s):  
Undergraduate Students ◽  
Business Performance ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
High Tech ◽  
Competitive Strategies ◽  
Content Type ◽  
Differentiation Strategy ◽  
Academic Level

Learning outcomes By reviewing the case study, readers are expected to understand the constraints of competitive strategies in a shifting environmental landscape; the difficulties of foreign companies to sustain in an emerging market with government interventions; the subtlety of joint venture (JV) formation by partners with very divergent background, priority and agenda; evaluation of behavioural orientations of partnership and JV operational arrangements as determinants of a successful JV strategy. Case overview/synopsis High-tech companies can enjoy super profits from their products when only a few competitors can compete with them technologically. However, these companies also nurture a high-cost operational culture that sets a constraint for their further growth when superiority of the technology can no longer be maintained. High-tech companies may reposition their businesses with a strategic shift from differentiation strategy to cost focus strategy. The attendant shift as well as synchronization problem in an organization may require a larger effort to revamp. This case describes a global telecom infrastructure company with successful business performance in China in her early establishment with a pre-emptive technological edge. Mitigation of technological superiority and the rise of local competitors have forced the Company to opt for a cooperative strategy with a local player in the establishment of a low-cost joint venture. Does the new joint venture facilitate the strategic shift or just create an illusion of cooperation? Complexity academic level Undergraduate students and post graduate students taking strategic management course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Increasing productivity in the Big 4: a research note

2014 ◽  
Vol 9 (3) ◽  
pp. 297-302
Author(s):  
Chereen Pasha
Keyword(s):  
Research Note ◽  
Future Research ◽  
Employee Productivity ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Business Professionals ◽  
Accounting Firms ◽  
Content Type ◽  
Big 4 ◽  
Development Data

Purpose – The purpose of this article is to examine the idea of increasing employee productivity and retention within the Big 4 accounting firms through the inclusion of sleeping pods to allow napping. Design/methodology/approach – I have reviewed multiple sources of information and data including Organisation for Economic Co-operation and Development data to conclude that allowing napping within Big 4 accounting firms could increase productivity. Findings – As a research note suggesting future research, I am hoping that future research shall find support for the idea that there may be a relationship between being well rested and increase in performance. Practical implications – Higher quality of workers will increase their productivity and the company’s profits. Conservative leaders in large audit firms may reject the idea of incorporating “energy pods”. New ideas always come with push back and criticism. Originality/value – Big 4 firms have developed a working system that could be improved to remove the negative stigma of overworking their employees. The value this research strives to reveal is a structure that reduces turnover and increases retention after two years. “Energizing pods” have been introduced into technology and airline companies. Taking naps in a fast-paced, stressful work environment is not common, but it is a concept that should further explored for the sake of business professionals.

Decision-making experiences of public library CEOs

2015 ◽  
Vol 36 (8/9) ◽  
pp. 644-652 ◽  
Author(s):  
Cheryl Stenstrom
Keyword(s):  
Decision Making ◽  
Information Science ◽  
Public Library ◽  
Library And Information Science ◽  
Evidence Based ◽  
Interpersonal Influence ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to explore and describe the decision-making practices of public library managers in the context of interpersonal influence and evidence-based information sources, and to investigate the relationship between models of evidence-based practice and interpersonal influence in the decision-making process of public library managers. Design/methodology/approach – Data were collected through short audio blog posts participants made about their everyday decisions and coded considering the facets of three existing evidence-based library and information practice (EBLIP) models as well as the facets of interpersonal influence. Findings – The findings show that public library CEOs decision-making behaviours reflect the use of a variety of practices from analytical to intuitive as is expected of managers in any sector; however, a stronger reliance on gathering objective information may be present than in other sectors. Seeking multiple sources of information and a tendency towards rationalism may indicate a more sophisticated approach to decision making, but be less indicative of the practices employed more broadly. A possible outcome of these tendencies may result in discordance with external partners and collaborators. Practical implications – The findings from this study may inform the work of associations, library and information science (LIS) educators, and library managers in developing strategic directions and instructional strategies within their organisations. It is also the first study to jointly examine models of interpersonal influence and evidence-based decision-making practices in any field. Originality/value – While the study of the decision-making practices of various groups is growing, little previous research has been conducted with public library managers, and none has been undertaken in Canada.

Abnormal disclosure tone, earnings management and earnings quality

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heba Abou-El-Sood ◽  
Dalia El-Sayed
Keyword(s):  
Earnings Management ◽  
Impression Management ◽  
Value Relevance ◽  
Emerging Market ◽  
Earnings Quality ◽  
Valuable Insight ◽  
Mena Region ◽  
Content Type ◽  
Disclosure Tone ◽  
Earnings Smoothness

PurposeThe authors investigate whether abnormal tone in corporate narrative disclosures is associated with earnings management and earnings quality, in an emerging market context. Based on agency theory and opportunistic/impression management perspective, this study examines whether executives manage disclosure tone to support their opportunistic behavior, when using earnings management.Design/methodology/approachThis study uses a sample of earnings press releases of publicly traded firms in the MENA region during 2014–2019. It employs textual analysis to measure disclosure tone. The authors estimate abnormal disclosure tone after controlling for firm characteristics. Discretionary accruals proxy for earnings management and are estimated using Modified Jones model. Earnings quality is measured using accounting-based and market-based proxies: earnings smoothness, persistence, predictability and value relevance/informativeness.FindingsResults show a positive association between abnormal disclosure tone and earnings management. Additionally, results show that earnings persistence is higher for firms with lower levels of abnormal disclosure tone. Results are sustained for earnings smoothness, but not for predictability and value relevance/informativeness.Research limitations/implicationsResults provide initial evidence of management's use of tone management jointly with earnings management. This adds to prior studies adopting the opportunistic perspective of disclosure tone, through showing that discretionary tone in narrative disclosures can be strategically used by management to influence investors' perceptions.Practical implicationsThe results provide valuable insight to board of directors, auditors and market participants on the possible biases emerging from tone of narrative disclosures in corporate reports. For regulators and standard-setters, results shed light on the need for regulations and rules beyond financial statements, to guide disclosure of narrative information in different corporate reports.Originality/valueThis study contributes to the rare evidence that investigates textual disclosure characteristics to uncover management's opportunistic practices and assess earnings quality. Where majority of studies concentrate on developed markets, this study provides novel evidence of emerging markets by examining the association between abnormal disclosure tone and earnings management/earnings quality. Also, it validates the tone management model proposed by Huang et al. (2014) for capturing tone manipulation.

Information sources used by local police to estimate the scope and nature of sex trafficking

2019 ◽  
Vol 42 (6) ◽  
pp. 976-991
Author(s):  
Hyunjung Cheon ◽  
Charles M. Katz ◽  
Vincent J. Webb
Keyword(s):  
Sex Trafficking ◽  
Policy Implications ◽  
Data Sources ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Content Type ◽  
Special Unit ◽  
Local Police ◽  
Police Agencies ◽  
The Usa

Purpose Although trafficking of persons for commercial sex has been increasingly recognized as a community level problem most estimates of the prevalence of sex trafficking in the USA are made by federal entities and vary depending on the data sources used. Little is known about how local police agencies assess and understand sex trafficking in their own communities. The paper aims to discuss this issue. Design/methodology/approach To help fill this gap, the current study using survey data from a sample of local police agencies across the USA (n=72) examines law enforcement agencies’ knowledge of and experience with addressing local sex trafficking problems in their jurisdiction. Findings The majority of police agencies reported that sex trafficking is a problem in their jurisdictions and that they have a special unit that has a primary responsibility for addressing sex trafficking issues. Agencies with a special unit tend to use multiple sources of information including official record, intelligence data and personal experience to estimate the community’s trafficking problems when compared to agencies without a unit; however, most of agencies primarily depend on their professional experience. Originality/value This is the first study to examine the data sources used by local police agencies to estimate the scope and nature of their community’s sex trafficking problem, and the findings have important policy implications for understanding the reliability and validity of these estimates, and for their potential use to develop and implement data driven responses to sex trafficking problems.

scholarly journals Capital market offenses in Malaysia

2018 ◽  
Vol 10 (2) ◽  
pp. 171-188
Author(s):  
Yoke Yue Kan
Keyword(s):  
Stock Market ◽  
Real Life ◽  
Market Manipulation ◽  
Sources Of Information ◽  
Financial Industry ◽  
Multiple Sources ◽  
Content Type ◽  
Share Prices ◽  
Self Interest ◽  
Life Context

Purpose The purpose of this study is to review and evaluate the salient features of stock market manipulation in Malaysia. The research questions used are: Who was involved? How it happened? What were the consequences? Design/methodology/approach This study has been conducted using content and thematic analysis. This study includes multiple sources of information to help establish the stylized facts and it uses cases that have been prosecuted in Malaysia for 2005-2015. Findings This study presents arguments and empirical data supporting the view that the stock market manipulation was conducted by those in a privileged position and with access to information. Ethical failure, involving greed, self-interest, dishonesty and a preoccupation with a quick profit, could explain why stock market manipulation happened. Manipulation harms legitimate investors, as share prices and earnings of companies are affected. Practical implications A better understanding about the prevalence, characteristics and consequences of the market manipulation problems will be useful for stakeholders, investors and policymakers in the financial industry for promoting and maintaining a fair, efficient and transparent stock market. Originality/value The originality of this paper lies in examining and presenting interpretations based on contemporary phenomenon within the real-life context of Malaysia. There is little study or literature that focuses on Malaysia, especially in examining stock market manipulation by integrating finance and management perspectives to form a comprehensive understanding of the issue.

Examining the gendered organizations: evidence of institutional discrimination

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anselmo Ferreira Vasconcelos
Keyword(s):  
Historical Analysis ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Gender Preferences ◽  
Level Indicator ◽  
Institutional Discrimination ◽  
Content Type ◽  
Gendered Organizations ◽  
Gender Based ◽  
The One

Purpose The purpose of this study is to examine how a group of special companies, i.e. highly acknowledged and awarded ones operating in Brazil handle the gender issue. Design/methodology/approach This investigation relies on historical analysis by addressing essentially a surface-level indicator (i.e. gender preferences). Rather, this study is grounded on data from the companies that were awarded as one of the best organizations to work for in Brazil by Época-Great Place to Work® Institute and Guia Você S/A lists (between 2012 and 2016). As a result, four organizations were selected, that is, the most representative examples of gender doing. Findings Overall, it found that the glass ceiling is apparently breaking down within at least some germane Brazilian organizations. However, data suggest that other sorts of institutional discrimination may be taking place, i.e. the one in which a feminist mindset may be permeating an organization or even a whole business sector. Under such a scenario, male workers will likely have only a few opportunities. Research limitations/implications The sample size of this study does not permit that the results be generalized. In addition, data were elicited from only a specific cohort of companies. Practical implications It was found no substantial evidence that these organizations are making strides toward at least mitigating the effects of their gender unbalance, although gender equality and, broadly speaking, diversity does not constitute a new management topic anymore. Originality/value Unlike other investigations, it encompasses a larger sample of companies, draws exclusively upon gender-based organizations and is grounded on multiple sources of information. Additionally, data revealed that gendered organizations may encompass different levels of salience.

Alpha Tech: a Brazilian software firm goes international

2014 ◽  
Vol 52 (9) ◽  
pp. 1680-1702 ◽  
Author(s):  
Sylvia T.A. Moraes ◽  
Angela da Rocha
Keyword(s):  
Multinational Corporations ◽  
Low Cost ◽  
Emerging Market ◽  
International Markets ◽  
International Strategy ◽  
Internationalization Process ◽  
Sources Of Information ◽  
Content Type ◽  
Software Firms ◽  
Software Firm

Purpose – This strategy-learning case traces the growth of AlphaTech, a publicly traded company in Brazil that is a management software company. The purpose of this paper is to debate whether or not the firm should give more emphasis to internationalization, given its high market share in Brazil, where further gains may be very expensive and difficult. The case is intended to serve as a vehicle to discuss the internationalization process of a software firm from an emerging economy. Design/methodology/approach – The case was built using several sources of information, including interviews with two executives in charge of the firm's internationalization process, articles in business newspapers and magazines, a book written by the firm co-founders, reports, and information gathered in the internet. Findings – The main issues posed by this case study are: first, the difficulties faced by an emerging market firm to get a sustainable position in international markets; second, the challenges of competing with powerful global multinational corporations (such as SAP and Oracle) in the international marketplace; and third, the need to adapt the firm's international strategy to new threats and opportunities. Originality/value – The Brazilian context differs from other BRICS, since Brazilian software firms do not have access to low-cost labor and therefore cannot adopt a low price strategy to compete effectively in international markets, but rather need to build unique capabilities to overcome liabilities of foreignness.

The accuracy of management profit forecasts in IPO prospectuses

2016 ◽  
Vol 6 (1) ◽  
pp. 2-12 ◽  
Author(s):  
Tanweer Hasan ◽  
Muliaman Hadad ◽  
Kamran Ahmed
Keyword(s):  
Initial Public Offerings ◽  
Forecast Error ◽  
Emerging Market ◽  
Forecast Accuracy ◽  
Forecast Errors ◽  
Sample Period ◽  
Sources Of Information ◽  
Forecast Horizon ◽  
Content Type ◽  
Explanatory Variables

Purpose – The purpose of this paper is to measure the accuracy of management profit forecast in initial public offerings (IPO) prospectuses and investigate the determinants of any observed forecast error in Indonesia. Design/methodology/approach – A sample of 105 Indonesian IPO firms over a ten-year period, 1999-2008, is used in the present study. The accuracy of management profit forecasts, or forecast errors, in IPO prospectuses is calculated, following Lee et al. (2006), over the ten-year sample period. Then, a multivariate model, following the extant literature, is used to identify the determinants of any observed forecast error in Indonesia. Findings – A mean (median) forecast error of 19 percent (9 percent) is reported over the entire sample period. Multivariate analysis shows that, among the explanatory variables used in the present study, forecast horizon and management optimism seem to be the most significant determinants of forecast error in Indonesia. Research limitations/implications – The ordinary, specifically small, investors in Indonesia lack the sophistication needed to evaluate new issues while alternative independent sources of information or analysis on IPOs are virtually non-existent. Consequently, whether the forecasts made by the managers during IPOs are reliable or not is of particular importance in Indonesia. Originality/value – Indonesia is a significant emerging market in Asia. However, to date, no published work has examined the accuracy of management profit forecasts or forecast errors in this market. The present study attempts to fill this gap in the literature and is the first to capture the magnitude/degree of forecast accuracy or error and investigate the determinants of the documented forecast error in Indonesia using a sample of 105 IPO firms over the period 1999 through 2008.

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